Electrical Contracting News (ECN) September 2017 | Page 73

WHOLESALERS & DISTRIBUTORS particularly the nationals. Using the Luckins pricing system helps, but not all wholesalers use this. There is also the issue of terms, rebates and marketing support; it’s actually a Catch 22 situation. No terms quite often means no business. No business means there is no point in discussing terms, and without terms, there is no business. From my experience, many wholesalers are (obviously) heavily geared to working with their existing suppliers. It’s therefore not easy to get wholesalers’ attention if you are not already in their ‘ecosystem’ and I do wonder sometimes how many new companies decide to supply direct because of this circular problem. Market education Another issue is that most orders are placed on price and in my opinion this can be somewhat short-sighted. For a company like Light Effi cient Design manufacturing quality LED products, we offer a number of distinct product advantages – fi ve-year product warranty and onsite LM79/80 data, proven track record over cheaper import options – which are often overlooked until the cheaper product fails. We work hard to get the quality message across to the contractor or user but, but as is so often the case these days, longevity and performance often take second place. So this is perhaps an area where wholesalers could do more to help, by supporting contractors and their end user customers with more due diligence ‘H aving wholesalers helping bona fi de manufacturers keep a more watchful eye on ‘rogue’ imports could help us all.’ on new products and the manufacturers behind them. It’s in their best interest, as it can be damaging to the reputations of both wholesalers and contractors to offer products which are not built to last, don’t produce the promised lumens and don’t always have the appropriate certification paperwork. In the case of retrofi t LED lighting, until recently an unchecked fl ood of cheap and often unreliable imports, clearly not supported by ROHS and with spurious claims on lamp life, actually hampered market acceptance of the ‘real thing’. It has taken time for quality manufacturers like us to redress this and win back market trust. Therefore, having wholesalers helping bona fi de manufacturers keep a more watchful eye on ‘rogue’ imports could help us all. Without doubt, the wholesaler’s experience in distribution, local knowledge and stocking of product can bring great rewards for both parties. While fully recognising some larger wholesalers often carry tens of thousands of core lines to serve the diverse nee ds of their customers, the pace of technological change in today’s electrical industry now suggests a need for greater agility and fl exibility. What may have always been the ‘obvious’ and ‘safest’ brands to stock may no longer be the most appropriate, while low-cost products appearing to be good margin making opportunities may have a sting in their tail when it comes to reliability. SPECIAL FEATURE It’s an increasingly complex market and highlights all the more why it is now so essential for good lines of communication between manufacturer, wholesaler and contractor. Here is some food for thought for both sides of the fence to consider: Manufacturers: • Always supply through the network. Never conduct any direct business, which is an error some manufacturers make. • Consider utilising local sales agents to help bridge the communications gap between manufacturer and wholesaler, especially if you are new to the market. • Ensure you have informative, accurate and up-to date product literature available for wholesalers to display. • Ensure your supply chain will keep pace with wholesalers’ order fulfi lment requirements. Wholesalers: • Demystify your accounting and purchasing systems. • Offer more fl exibility on terms, rebates and marketing support. • Be less price oriented when taking on new products – lowest cost doesn’t necessarily mean ‘best’ when it comes to longevity and performance. • Be more open to trialling/showcasing and proactively marketing products from newer entrants – they could be your next star performer. 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