What does the Distributor need to do

It is imperative that a meeting takes place with both Manufacturer and 'Poor Performing Distributor' around the table. At that meeting both sides must state their aspirations for the business. Invariably the Suppliers aspirations will be more ambitious than those of the Distributor. The skill now is to bridge the gap between what the two parties aspire to. What does the Supplier need to do to help the Distributor perform better, and by when? What does the Distributor need to do to make more sales, again by when? What do both parties need to do to resolve the issues? Again, planting seeds is important, so that the Distributor develops ideas along the lines of the Suppliers thinking. A specific action plan needs to be put together to meet the immediate objectives, with a longer term ongoing plan to sustain the higher levels of business, once growth has been achieved.

Formalising a reporting structure is a key strategy. Careful consideration regarding a format is important. Too complex and the Distributor will procrastinate, or even worse, ignore. It needs to be easy for the Distributor to deal with. It needs to be in a format that allows the Supplier to benchmark each Distributor.

The frequency of reporting is also a consideration. For high volume fast moving products, perhaps a Monthly report is needed. With longer sales process items (eg Capital Equipment) a quarterly report may suffice.

Expect some resistance to formalised reporting. The Distributor may need to be coerced, even incentivised. Explain that reporting from all Distributors will allow a better flow of success stories and cross referrals, hence greater business opportunity. And for those who stubbornly refuse to report, and are not performing well, now is a chance (contract allowing) to sever business relationships.

There will always be an element of 'Us and Them'. And of course the Supplier must respect the fact that the Distributor has other priorities too, as they are likely to represent other suppliers. However, getting the Distributors together once every 12-18 months for a conference, training and intelligence sharing event is likely to pay dividends for the Supplier. It will engender a sense of worth and belonging for the Distributor.

"All this is all very well, but my Company has 25 Distributors, they are based anywhere from New Zealand to Alaska, Singapore to Brazil. How can I reasonably be expected to do all this?" A very reasonable question. First, a network of this size will need more than one person to manage it. Second, it is important that you take the time (albeit sometimes infrequently) to visit all Distributors. For those far away, it can be prudent to engage the services of a specialist Sales consultancy local to the Distributor, who can monitor the Distributor with 6 or 12 weekly progress meetings, and instill good sales practice at the same time. An independent Sales consultant will understand the Suppliers objectives, the local culture and trading conditions, and provide an unbiased assessment of the progress and challenges.

It is interesting to talk to Supplying companies who believe the Distributor route has failed them. It is always the Distributors fault, or is it? Perhaps a recognition of joint responsibility may have yielded an all together different outcome. And perhaps now, on reading this, the realisation of this responsibility is becoming apparent.

Some Suppliers have recently stated to me that "We believe we can do an equally good job in the territory without giving away all that profit." I cannot argue with this view one way or another as there are many options to doing business. Of course each come with a cost associated to them. Careful consideration of overheads, employment, local laws etc are vitally important.

The underlying message is that you need to work with your led strip distributor to gain the rewards. Both time and money must be invested. Mutual respect and spirit of cooperation are key.

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Distributors Are Not Customers

Some manufacturers don't acknowledge this value openly and live in a "Love-Hate" relationship with their distributors. They can't live with 'em and they can't live without 'em. Of course it's true that a few distributors deserve this negative opinion. There are those who have made fortunes simply because they had products with exceptional brand equity in exclusive or selective territories that required nothing more than answering the phone to get rich. Some of these distributors have failed to reinvest in their business, putting personal needs ahead of business needs. Then when the end of the product life cycle nears and cutting edge distribution is required for new product introduction and support, the commitment, desire and competence on the distributor level is often lacking. These circumstances just fuel the fire of manufacturers' low opinion of led strip distributor. Fortunately we believe these scenarios make up only a small minority, so we need to work to change any negative generalizations.

Different Perspectives：We should recognize that there is a different business mindset between the distributor and the manufacturer. By understanding the two perspectives better, each party can work toward an improved partnership relationship. The manufacturer prefers to have a contract with point-of-sales information. Their contract would state, you will do "this," and if you don't, "these" are the consequences, and by the way, our deal can be cancelled with a thirty-day notice. On the other hand, the distributor prefers a partnership covenant that says if you do "this," we will do "that," and together we will grow market share.

Naively, throughout much of my distribution career, I believed that I was a customer of the manufacturer. I bought their product and resold it. I did not comprehend the concept of not being their customer until 1998. I was two months on the job as COO of a $400 million distributor. The first time I met our major supplier, a manufacturer of pumps, it was at a cocktail party. I was talking to their Vice President of sales. I had done my homework and knew our company was on their top ten account list as we had purchased over $45 million dollars of product from them the year before. I made a comment to this Vice President about our company taking pride in being one of their top ten customers. I expected at least a smile, kudos, or just a grateful nod. He looked at me in disbelief and with a rather firm, arrogant voice said, "Rick, you are not a customer-you are a distributor!"

At the time I was offended by his attitude but have since come to realize that in the eyes of the manufacturer, distributors are not customers. They are simply a link in the supply chain. Ideally, they are channel partners. Manufacturers have huge capital demands to cover high fixed costs. Their call to continually increase market share is essential, yet distributors sometimes get frustrated with the volume-driven needs of their manufacturers.

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Hey Mr. Manufacturer-- Distributors Are not Catfish

Catfish are native to North America. As you may know, catfish are bottom feeders with slick, shiny skin and no scales, often known as "Mr. Whiskers." They feed on algae and prefer "dead stinky bait" rather than better, live alternatives. They feed at night and can be predators. Most are sleek and quick, but some have been known to grow over 50 pounds. Catfish known as Bull Heads are even more of a scavenger and feed on decaying organic matter. Bull Heads are not the fighters that Channel Catfish are and become an easier catch.

Some manufacturers may think of their led strip distributor in the same vernacular. They may believe distributors are slick, quick, and eager to feed on the almighty dollar. They say distributors "bottom-feed" on rebates, discounts and special promotions, preferring lowered prices (i.e., dead stinky bait) as opposed to the hard work of selling value. Manufacturers believe some distributors have grown large and lazy, demonstrating the "Cadillac and Boat" syndrome. "I have all I need, a Cadillac and my bass boat, so why break my neck trying to capture even more market share?"

After spending more than 35 years in the distribution business, I must admit that I have run into a few distributors who fit that description. But they are the exception, not the rule. Most distributors work very hard, and are honest and loyal to their manufacturer. They recognize that they are only as good as the support they receive from their manufacturer. But they also recognize the reciprocal nature of the relationship. In other words, the more support that distributors give manufacturers through investments in market share growth, then the more support they will receive from the manufacturer.

Distributors are not bottom feeders in the supply chain channel.

Distributors provide tremendous value. Most manufacturers understand this and will openly admit it, although some do so begrudgingly. Manufacturers who truly operate in a partnership relationship not only acknowledge the distribution value, but they seek to leverage that value at every opportunity. What value does distribution provide?

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LED Lighting - Ready for Prime time?

Reducing electricity needed for lighting will reduce greenhouse gas emissions, save billions of dollars and reduce our dependence on fossil fuels. There's no doubt that light-emitting diodes (LEDs) will help reduce electricity needs. They already dominate the market for traffic lights, automotive tail lights, store signs and other specialty design applications. Can they penetrate the residential market and perhaps dominate?

LED lighting is beginning to appear in the residential market. The technology is advancing at a fast pace with increased efficiencies and new products coming to market. Lofty prices are the biggest limitation to residential use. As the technology and market acceptance improves, production volumes will increase, more manufacturers and distributors will enter the market, product selection will improve and prices will fall. Led strip distributor today can cost more than 4 times as much as comparable compact fluorescents (CFLs).

Is LED lighting a suitable residential alternative to incandescents or CFLs?

It depends...... on the application and the cost. They're environmentally friendly and cost aside; they're very effective for under counter and accent lighting, landscape lights and night lights. Consider a "test drive" before buying LEDs for reading lamps, spots or floods. Cost may be a barrier. If not, it's a matter of personal preference.

Advantages of LEDs:

1.Very low energy consumption

2.Long service life - up to 50,000 hours

3.Rugged and durable - resistant to thermal and vibration shocks

4.Superior directional light distribution (spots)

5.No infrared or ultraviolet radiation

6.Safe and environmentally friendly - cool to the touch, contain no mercury

7.Instant activation, no flicker, dimmable

8.Broad color range - can produce white light and all colors of the spectrum

Disadvantages:

1.Expensive

2.Limited variety

3.Limited availability

4.Heat sensitive; excessive heat will reduce effective life

5.Lenses or reflectors needed to create a controlled, broad beam (floods)

6.Colors may differ from incandescent and fluorescent

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How to Choose the Right LED Strip Light?

Strips are usually flexible to one dimension only, which is exactly she the direction of the LEDs can be significant. The most common types of strips have LEDs lighting upwards, so if for instance if you wish to enlighten a wheel you have to look for side-mounted or side-view strips to be able to shape them the right direction.

The carrying capacity of strips is generally very low. Heavy-duty strip lights are not usually sold for home use, but much rather for commercial use on ships and in factories for instance. In home use, where carrying capacity matters - on an edge of a stair for instance - the use of profiles is the common solution.

The IP rating of strips or any electric goods is made up of two numbers, indicating the degree of protection provided against the intrusion of solid objects (including body parts like hands and fingers), dust, accidental contact, and water in electrical enclosures.

The Voltage of led strip distributor should always be checked before application. Strips running at mains are often used, but most of the LED strips require a transformer, since they run at low voltage (usually 12 or 24 V). If your strips need a transformer, make sure it is suitable for LEDs, because electric transformers most of the time ruin LEDs.

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