I'm curious...

vquestfilms.com · September 23, 2011

I've noticed suppliers that will sell a box of brand name film to just about anyone that can pay for it and I've seen more restrictive programs where suppliers will only set up only so many dealers in a given market. I'm curious what everyone's thoughts are. Obviously most would like to have "exclusive" representation of a given brand in their marketplace that excludes all of their competition but at the same time they also want access to other films when needed with no commitments.

It is a tangled web... Obviously from a supplier standpoint it is tough to supply one company if they are buying 4 different brands of film.

But from a dealer's point of view... I've seen upwards of 20 companies in a single metro area selling the exact same brand film.

What do you prefer? And where should the balance be?

TomTint · September 23, 2011

Rob, Im sure you understand the complexity of this. In todays environment, I think mannys/distributors dont want to sell to every one...but NEED to sell to anyone. It puts some dealers who have bought into a premium program in a pickle. IMO, I see little if any real value, to any of the premium programs offered right now. There are so many quality options for film. As far as exclusivity to a dealer territory. I think it looks great on paper but in the real world is not worth a whole bunch.

September 23, 2011

Its a good question quest, and will get many different answers. I imagine there will be many who say they want exclusivity with no buy in and access to anything. And yes from a suppliers side a dealer wanting exclusivity from you but not giving exclusivity to you is tuff as well, it works both ways, or should anyway.

Fiveofeen · September 23, 2011

Excellent question, this is a subject that comes up frequently in my world. I'm interested to hear the opinions although I have a sneaking suspicion what the responses will be.

vquestfilms.com · September 23, 2011

I hate that word "exclusive," it's overrated but it is used a lot so let me give my interpretation for the sake of the thread. I believe "exclusive" in the supplier customer relationship is dependent on a dealer maintaining a minimum amount of business in a given market to enable a supplier to minimize relationships. If you buy enough film in a 12 month period then there should be no need to over saturate a market on the part of a supplier. Ideally, there is responsibility on both ends.

vquestfilms.com · September 23, 2011

Rob, Im sure you understand the complexity of this. In todays environment, I think mannys/distributors dont want to sell to every one...but NEED to sell to anyone. It puts some dealers who have bought into a premium program in a pickle. IMO, I see little if any real value, to any of the premium programs offered right now. There are so many quality options for film. As far as exclusivity to a dealer territory. I think it looks great on paper but in the real world is not worth a whole bunch.

I do Tom. It is very complex to say the least. I am curious because I strive to maintain current understanding of the marketplace, I never want to be one of those "detached" reps so that is why I appreciate everyone's thoughts here no matter what they are. :idea

September 23, 2011

If someone wants to get into the film install business, showing business intent(from the film suppliers' perspective) by producing a business liscence should be enough...

The rest will be determined by their work.

So, if manufacturers want to grow their business, they obviously need to sell more film. To sell more film, generally means more installs, i.e more installers/shops.

And one shop can do only so many installs.

If the film supplier wants to have exclusivity in a certain market, than that's their call(shooting themselves in the foot... my opinion).

So, why would you want to make it difficult for the business owner to get his/her raw material? If an installer sucks, everyone from the customer to the supplier will eventually find out. At that time, I think, the supplier has some options. But until then, they are just in business to sell film! Good quality film... :spit

vquestfilms.com · September 23, 2011

If someone wants to get into the film install business, showing business intent(from the film suppliers' perspective) by producing a business liscence should be enough...
The rest will be determined by their work.

Everyone seems to have "intent" but what about investment? Vehicle, employees maybe, insurance is always good, a contractor's license where applicable, but importantly the ability to install the footage needed to keep an area free of mass-saturation of dealers.

So, if manufacturers want to grow their business, they obviously need to sell more film. To sell more film, generally means more installs, i.e more installers/shops.
And one shop can do only so many installs.

If the film supplier wants to have exclusivity in a certain market, than that's their call(shooting themselves in the foot... my opinion).

A market usually has a $$$ potential based on a number of statistics. A shop like you say can only do x amount of business. So if the shop cannot hit the market potential, would it be reasonable for the supplier to add another dealer?

So, why would you want to make it difficult for the business owner to get his/her raw material? If an installer sucks, everyone from the customer to the supplier will eventually find out. At that time, I think, the supplier has some options. But until then, they are just in business to sell film! Good quality film...

I would say only make it difficult for those who are not invested in their business ie. someone with an OLFA and a credit card buying a half a roll of film and doing $79.00 cars is not as invested as say maybe a guy that is will to buy some inventory and maintain growth margin for his or her business.

Just some thoughts...

TomTint · September 23, 2011

Let's say film mfr x has a " special" film line they only sell to dealers who have bought in to the program, thus giving the dealer a certain perceived status. I think that is great if the mfr is doing something for that dealer in the area he is marketing in. There has to be a value added to the dealer, not just a pat on the back and a atta boy. If there is no support from the mfr outside of 4 color pamphlets, it is hold no merit to subscribe to the program IMO. If in fact the manny is promoting the product and the subscribed dealers in each market they service than that adds value to the line thus adding a reason to select who can and can not buy the product.

September 23, 2011

Loyalty is a two way street.

I remain loyal to our brand for almost everything that I can.

However, if I'm going to loose a sale because I don't have the correct material, and they will not accept a substitute, than I'll put on whatever I have to to close the deal.

If a manny wants put in another store in your "exclusive" area, you should have the first right of refusal. If all those smart people sitting behind a desk somewhere think the area can support another dealer, based on their magical formula, then the opportunity should be presented to the successful dealer in that area first.

If, the dealer chooses not to expand their current business to handle the "higher" demand, within a reasonable amount of time, then why not?

However, if I was to find out my manny opened up another store in my area without my knowledge I would drop them so f'n fast, even after 20 years. :thumb

I expect my loyalty to be returned.

:lol