I have many times looked at how our "industry" manufacturers operate, and thought it went back to the robber barron days. I think I can mention NS Corp because they don't advertise here. NS makes many of their parts proprietary, which means you can't go to Grainger and get it. That's their right to do so. When they sell a machine, their distributor gets nothing but the install and maybe a chemical customer. Whoop de doo. That will ensure that the customer has a dedicated distributor to support him. At least the distributor could make some money of their proprietary parts. Well now it turns out that NS will sell the part to a large customer at the same cost, or possably less, than what the distributor can buy it. What am I missing here? Why in heck would you want to be a NS distributor?
How some, or at least one, manufactuer treats their distributors
- Thread starter mac
- Start date
robert roman
Bob Roman
Obviously, business continues to tighten up for many participants in the carwash industry.
Most likely, more carwash OEM's are going to sell direct in the future.
If so, a distributor's territory and the number of brands represented would increase and the overall number of distributors would decline.
Based on how some companies are conducting business in other sectors, I can envision carwash OEM's wanting to do away with the conventional middleman.
Consider the number of small businesses, equipment distributors and/or service companies, that are for sale in southeast. Unless you are a large distributor, I can't see how you can make any money in this end of the business (install and service). Without decent sales commissions, I would guess that owning a carwash distributorship would be no more profitable than owning a lawn care or qucik lube franchise.
Most likely, more carwash OEM's are going to sell direct in the future.
If so, a distributor's territory and the number of brands represented would increase and the overall number of distributors would decline.
Based on how some companies are conducting business in other sectors, I can envision carwash OEM's wanting to do away with the conventional middleman.
Consider the number of small businesses, equipment distributors and/or service companies, that are for sale in southeast. Unless you are a large distributor, I can't see how you can make any money in this end of the business (install and service). Without decent sales commissions, I would guess that owning a carwash distributorship would be no more profitable than owning a lawn care or qucik lube franchise.
In some respects I agree with Robert but I am not that sure that most manufacturers will turn to selling direct. There will always be a need for local sales and service in our industry. If a manufacturer chooses to sell direct they will need to set up some form of regional or local service to meet the needs of operators. When they include the cost of setting up and supporting this network in the cost of their products they will find that the cost of their products to the operator will be in the ballpark to where they are now.
I think a good distributor is very difficult to replace. I see distributors that want to continue to be in business looking more at increasing their service work and chemical sales. Many now service other units than what they sell and are taking on an additional chemical line either in the form of a brand or private label line to expand their sales beyond existing customers.
Everyone that buys a piece of equipment understands that they will need service. If service and parts are difficult to find, it will create a negative effect on the manufacturer selling direct. There is no doubt that the traditional distributor set up of carrying and servicing one line of products is becoming outdated. This may create problems for manufacturers that continue to make equipment with many expensive proprietary parts.
I think a good distributor is very difficult to replace. I see distributors that want to continue to be in business looking more at increasing their service work and chemical sales. Many now service other units than what they sell and are taking on an additional chemical line either in the form of a brand or private label line to expand their sales beyond existing customers.
Everyone that buys a piece of equipment understands that they will need service. If service and parts are difficult to find, it will create a negative effect on the manufacturer selling direct. There is no doubt that the traditional distributor set up of carrying and servicing one line of products is becoming outdated. This may create problems for manufacturers that continue to make equipment with many expensive proprietary parts.
Earl Weiss
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Perhaps it is or has been outdated for some time.
How many replacement / repair parts can a distributor realisticaly stock or have on the truck?
Distributors should be anle to make money on installation and repairs. Sales should be gravy, if there is any to be had. Many parts can be replaced by hands on operators, so they should be able to buy direct. Or at least order direct with the local distributor getting the credit because the cusomer # is keyed to the distributor. Solves the hassle of calling the distributor, they have to get info from mfg, and call back.
