Today’s FEDA seminar is Proudly Sponsored by:

Today’s Topic: Dealer Manufacturer Collaboration

Goal: Inspire dealers and manufacturers to collaborate together, creating more profitable growth for all.

Remember the Three Little Pigs?

The Sequel: The Lion and the Three Bulls

Obvious Desirable Characteristics (Dealer’s view of Manufacturer)

Quality product at reasonable price Responsive and Knowledgeable Customer Service Hassle Free After Sale Service Support Clear, Accurate and Easy to access Information Ship the right stuff to the right place on time every time

Prompt Order Acknowledgement / Accurate Invoice Fair and consistent price, discount and rebate policies / programs Respect of Dealers relationship with End-Use Customer (don’t go direct)

Not So Obvious Desirable Characteristics (Dealer’s view of Manufacturer)

Consistently works to channel end-user sales through dealer Provides dealer with sales leads Communicates up-front about chain pricing / rebate challenges – collaborates on the solution

Takes Ownership of late shipments (and provides early warning of same) Applies price, discount and rebate policy in fair and consistent manner Provides detailed sales and technical product training and covers dealers travel and lodging expenses for factory training Takes Ownership of late shipments (and provides early warning of same) Applies price, discount and rebate policy in fair and consistent manner Provides detailed sales and technical product training and covers dealers travel and lodging expenses for factory training Takes Ownership of late shipments (and provides early warning of same) Applies price, discount and rebate policy in fair and consistent manner Provides detailed sales and technical product training and covers dealers travel and lodging expenses for factory training Takes Ownership of late shipments (and provides early warning of same) Applies price, discount and rebate policy in fair and consistent manner Provides detailed sales and technical product training and covers dealers travel and lodging expenses for factory training

Collaborates on program development (develops policies targeted at preserving dealer’s margin) Collaborates on innovative product development Provides advance warning of price adjustment and provides price protection for fair period of time Provides easy access to data / facilitates electronic data exchange pre and post order

Obvious Desirable Characteristics (Manufacturer’s view of Dealers)

Stock and Promote Product Line on Regular Basis Advertise Products to Customer Base (Flyer, Showroom, Website) Support Training of DSRs on Product Line

Show Loyalty to Manufacturer’s Brand Hold Spec when possible (only ask for extra discount when really need it) Respect Manufacturers Advertising, Pricing and Promotional Policies

Not So Obvious Desirable Characteristics (Manufacturer’s view of Dealers)

Collaborates on development of annual business plan including goals for sales volume, customer, market and product development Collaborates on sales calls to key customers / targeted business Shares information on leakage to competition / helps improve Brand loyalty

Provides access to sales team for joint training by both Factory and Rep Takes responsibility for incomplete or incorrect orders Inspects goods upon receipt / takes ownership of damages as appropriate Identifies competitive threats / works with Factory to hold spec

Ways to Support your Good Partners (Ways to encourage collaboration)

Dealer Give them your orders (sell on more than just price) Send your sales people to the factory for training Incentivize your sales team to sell their products Hold Spec

Manufacturer Share your sales leads with them Avoid direct sales / encourage chains to use distribution Provide enhanced incentives to supportive dealers Have Top Management visit regularly

Both Make joint sale calls on key customers Collaborate on business planning Approach conflict resolution in spirit of true partnership Trust, Communicate, Respect

United We Stand!

Divided We Fall!