Up to now our manufacturers have focused on special distributors like us. And I thought they understood why this makes sense, and was generated for the entire Channel Value. Unfortunately now I have doubts. When some manufacturers flirt with IT distributors they risk tearing apart what was previously painstakingly put together.
Up to now the manufacturers decided which products they wanted to bring onto the market. The retailer and the end customer then decide whether the product is a success or not. And the manufacturers would like to continue this way.
Unfortunately, the trend shows that increasingly more of our manufacturers are pondering marketing their devices via IT distributors too. Man is that short-sighted! Then the controllers of the IT distributors would decide if the product is available or not.
We deal with the fact that we are shlepping around roughly 60 days worth of stock with us. From a business perspective, this does not make sense when you first hear it. But we see it as our duty to also have "rare" articles on stock, so that our retailers do not need warehouses. The 60 days are an average value anyway. Those who are quick on the ball only need 20 days; on the contrary, some special products only once a year. In large distribution such things are rigorously rejected. For example, if barcode scanner A is not successful, then it will no longer be part of the program. If a customer needs scanner A though, and sees it is no longer available, then he will automatically choose scanner B. And just like that, product A goes from being a slow-moving item to being a dead item.
Of course the IT distributors are putting on the pressure. So what is the logical reaction of the special distributors? Since we also live off profit, we will also give priority to devices made by other manufacturers - it is a simple matter of survival. And just like that, you trip up a manufacturer. Then he notices that a large IT distributor, with millions of products and hundreds of manufacturers cannot be forced to make recommendations - they only distribute goods. This means he can never actively find new business for the manufacturers.
There is nothing left for the manufacturers to do but establish their own distribution and hire business development managers to do the job of the special distributors. Since most IT distributors cannot afford sound telephone support, they will also need a support call center. They also have no interest in repairing devices themselves, so they also need a repair service.
Since slow-moving products are not selling well (due to long delivery times), producers are suddenly forced to establish regional warehouses out of self-preservation, in order to quickly supply distributors, since only fast-moving products are stored.
Then it is clear to the manufacturer: rats! I do not actually need distributors, because I could also ship packages. The IT distribution has such a large percentage of sales (because the specialists have lost interest) that no manufacturer trusts itself to break the cycle. We are not only talking about whether or not it makes sense, but also the manufacturing sales manager's bonus. Even if it makes sense, he would never risk the fact that this decision could result in sales being delayed a month, because he would be losing his bonus.
This all may sound shocking. If you go into detail, there are many more issues as to why manufacturers should be careful. Among other reasons our retailers are selling these special products because there is a higher margin to be earned than on a hard drive. That is why the retailers have no interest whatsoever that our products become commodities, and quickly appear on cheap online shops thanks to XML feeds. They partially do not know that selling something, though lacking recommedation, also destroys the price.
The consequences are really bad for manufacturers: many smart retailers revamp their solutions immediately to other products, as soon as the margin appears by a broadliner. It is way too simple for the end consumer to compare prices and then select a device which is not available everywhere. Conclusion: please think long-term, just as we businesses do, and do not only live from quarter to quarter.
Complaining – the national pastime of the Germans
Let’s be honest, we Germans love to complain – about the weather, football, the economy, politics, etc....
Let’s be honest, we Germans love to complain – about the weather, football, the economy, politics, etc. This unites us all – regardless of our social class or political affiliation. Complaining is a national pastime in Germany. We love to grumble about high prices, the shortage of skilled workers and the weakening economy, while at the same time discussing our next holiday or the four-day week. Please don’t get me wrong, I am all for everyone taking a lot of time off and having a good rest – the only thing that bothers me is the fact that we love to see everything in such a gloomy light! We have to start working together to find solutions, because what we forget amidst all the moaning are our own abilities.
No, Germany is not falling apart! Germany still has a lot of untapped potential. We have people with great ideas, curious and inquisitive people (yes, even among Gen Z), a high average level of education, a high degree of legal certainty, a consistently strong industry, very good research ... and yes, we also have the capital. But we have to stop complaining and focus on our strengths. We are capable of innovation, we can be or remain market leaders in many areas, but, at the same time, we have to be open-minded. Even if one area collapses, we can successfully develop and expand a subsequent one. These are our strengths. However, we have to accept the challenge – be it in society, in politics or in the economy. Burying our heads in the sand won’t help us.
We are once again facing enormous opportunities for our future – whether in medical research, industry, the energy sector or, of course, across the board in the field of AI. And that’s just what comes to mind. There is, of course, much more. Let’s work together to develop new ideas that will advance us not only as a society, but also as a business location. There is potential out there, it just needs to be tapped! And by the way, we’ll have less reason to complain!
The road to success: do we really have to get worse at everything?
Last week I had a conversation with a customer that left me speechless....
Last week I had a conversation with a customer that left me speechless. Our sales department asked me to speak to a customer on the phone who doesn’t buy from us because we supposedly supply end customers.
No problem, I thought. I called and explained that this is exactly what we don’t do, and that this is a key promise to our dealers. There are extremely rare exceptions, – only if a vendor forces us to, or a retailer explicitly asks us to. But that almost never happens.
Then it turned out that there was a misunderstanding: the customer said that we also supply small retailers. My answer: »Yes, we do and we have to, based on our contracts with the vendors. Our competitors do that too.«
»All correct«, I hear, but then it got exciting: »Your large competitors are not interested in small customers, so they are poorly served. At Jarltech, the small dealers feel comfortable because you provide a great service.«
I didn't know whether to laugh or cry ... A customer doesn’t buy from us because our service is too good? I hadn’t expected that.
But don't worry, contrary to the headline: We will continue to endeavour to offer every customer the best service we can!
Why is good service so important again?
I'm writing to you today from China. Here I have learnt once again why good service is so important....
I'm writing to you today from China. Here I have learnt once again why good service is so important. If you want a customer to pay more than elsewhere, then you have to make the difference! You have to know what they like and anticipate their wishes.
Here in Shenzhen is the Grand Hyatt Hotel – I was here at least six times a year before Corona – and even stored some luggage in Shenzhen, so that I only had to fly with hand luggage. Liquids and such ... that was difficult on the plane.
It’s been over three years since I was last here, and I arrived to be greeted by an armada of hotel staff. My beloved Coke Zero was waiting for me in the car outside the airport. My luggage, which I hadn’t expected to see again, had been stored for three years and completely cleaned for my new stay. Everything was hanging in the wardrobe and the bathroom was neat and tidy. My razor was charged and my chargers stood on the desk. Of course, the fridge was full of Coke Zero and the white wine I had last drunk three years ago. Even the room service knew what I liked to eat.
That’s what hospitality really is. And we have to do the same at Jarltech. Always write down what our customers want and like. And when I go out to dine with a customer, I need to know whether they are vegan or if they don’t like pork, for example. Some customers want to be called and courted on a weekly basis, whereas others find this rather annoying. Some still prefer paper catalogues, others believe it’s environmental pollution. And all the better if a customer returns after three years, and I still have it all written down somewhere. Jarltech may not be a hotel, but we are a service provider that has to differentiate itself The difference is always in the details.
The world's smallest chef gives a guest performance in Usingen
It's finally back on: Our 3D projection dinner show »Le Petit Chef« will be back in our restaurant »Uwe and Uli« (www.uwe-uli.de) from the 11th of October...
It's finally back on: Our 3D projection dinner show »Le Petit Chef« will be back in our restaurant »Uwe and Uli« (www.uwe-uli.de) from the 11th of October 2023 to the 30th of April 2024. Personally, I always have fun enjoying delicious food with a bit of a show. Come by sometime – it's also great for Christmas parties with up to 20 people. And if you're a customer of ours, why not have your sales contact invite you next time you visit Jarltech? 😊
Have fun with the little chef!