Dealer groups are not worth the money!
Alex Tatham
IT Channel Consultant, Exec and Non-Exec Director. Driver of Strategy, AI, change and sales
https://www.officepower.net/dealer-group-report/?utm_source=channel%20info%20paid%20email&utm_campaign=dealer%20group%20report&utm_medium=email
Just read the Officepower report on dealer groups which has confirmed what I have said for many years - they're a waste of money. Most office dealers will not be a member of a dealer group in 5 years time and only 30% of dealers feel that their group is good value for money. What's interesting is that dealer groups pay HIGHER prices from suppliers such as Westcoast because we have to factor dealer group rebate into our prices. Dealers think they get better pricing - but they don't! The small fee that they pay for some marketing benefits is dwarfed by the rebates/pricing that they lose. The report says that dealers don't care because they perceive the cost is low. It isn't! I would accelerate your DGexit and negotiate direct with a distributor. Don't wait 5 years!
Chief Marketing & Technology Officer (CMO & CTO) Director, Board Member & Shareholder
7 年Hi Alex, Technology to a vendor is the real challenge in the OS marketplace as the majority are using antiquated software solutions to try and compete in a market that is already 10 years ahead of them. Amazon directly are going to cripple OS sellers very soon, eBay and again Amazon traders are and have been taking market share from so called traditional dealers for years. It is the technology and knowledge that is power today. "Dealer Groups" are out of touch with the real world of today's trading environment using ecommerce and online sales to increase marketshare and sales properly. But its not what you know its who you know in the OS dealer world which is going to leave only a few players in the next few years. I spoke for two years in a row at the Dealer Support Live event and said the same thing. Then Philip Lawson also said pretty much what I said but its 5 years to late. Cheers, Joe
Key Account Manager @ Kimberly-Clark Professional | CIM FCIM Member. Liveryman, Freeman of the City of London
7 年Hi Alex It might be the case that those 'Dealer Groups' who only exist to squeeze the vendors might be the very dinosaurs who are vulnerable and endangered. However if proactive, marketing and lead generation driven with real added value services then they can offer a real opportunity to engage with the supply chain and deliver what you want as a distributor as well as what resellers are looking for. Not all dealers have such a wide range is skills to grow with the markets that are changing. Surely an organisation of your size has the potential to help collectives deliver great added value to their (& your extended) customers. There is a clamour to strip out the dealer channel or rather focus it on a handful of selected super dealers and I get that. However variety, choice and ultimately sakes will go to other bigger players in distribution such as Amazon supply, if you and other disties don't work with other channel players. It might well be the case that 5 years could be the limit but some of us are sure that flexibility and adaptability to supply all sorts of stuff will help resist the death knell. Dealer groups need to cease being so hung up on supply and work more on generating new business channels, opportunities .
Passionate Strategic Marketer at Quadient | Driving Demand Generation and Delivering ROI
7 年Thanks for the mention of our report Alex Tatham, it's interesting to hear other people's opiniones on this topic. Here's a shorter link to the report page by the way: https://goo.gl/0YPj0F
Director U.K.
7 年I think the article might be better received if it was agnostic and applied to all group rebated deals.
CEO Proficiency Group. publisher of Proficiency Post, the Leading International Business Supply Market News Analysis Service. The Voice of Progress ... Tomorrow's News Today ??
7 年Interesting....check out follow up report & comment at Proficiency Post www.proficiencypost.com