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 • 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!