The Perfect Customer

I can't remember the last time I attended a PEI meeting when the subject of manufacturer/distributor relations didn't come up. This topic has always confused me a little. Since the discussions are mostly brought up by a distributor member, it would appear that some of us feel there is something we as a group can do to improve certain relationships, or for PEI to act as a mediator. It is my opinion that these situations should be handled one on one with the two involved parties.

In any of the cases I have been involved in, the distributor has felt he has been cheated, disrespected or treated unfairly by the particular manufacturer. Interestingly enough and probably not surprisingly, most of the situations have proven to be a case of two totally different explanations representing a complete lack of communication, understanding and willingness to listen to the other side.

In principle, manufacturers are in the business to sell their products the most efficient way possible. They are motivated by market share and profits, as is the way most of us operate our own businesses. As distributors, we have no God-given right to expect manufacturers to compromise their basic goals just to accommodate us. It is our job to help them reach their goals, which at the same time should benefit our own companies. Now I can already hear some of you screaming “Wait a minute, we are their customers, and we should be treated as such.” No argument there, but let's take a look at what we distributors expect from “our” customers.

In my opinion, a “perfect customer” is one that:

1. Grants me more than my fair share of his business.
   
2. Allows me to make a fair profit.
   
3. Pays his bills on time.
   
4. Negotiates when necessary, but also does not complain about every invoice.
   
5. Understands that I will make mistakes and allows me the opportunity to remedy them.
   
6. Maintains a good communication channel and understands that by allowing me to succeed,
   I in turn will do everything in my power to make sure he succeeds.

Would anyone argue with me that regardless of how big or small this “perfect customer” was, you wouldn't treat this guy special and give him the best service you could?

If we want a customer like this, why would it be unreasonable for a manufacturer to want the same from us? Does anyone believe that a manufacturer would not treat you, his “perfect customer,” the same way?

This whole concept gets a little tricky by the fact that some of our manufacturers are getting into what we feel is our business, therefore becoming not only our supplier but also our competitor. Obviously this is a very hot topic and one on which I have had my share of heated discussions. I hate to admit it, but this may be happening because we are not doing all of the things necessary to prevent this from happening. I have numerous employees who, for some reason or another, worry about losing their jobs or not being compensated fairly. I tell them that all they have to do is perform at a level where I cannot afford to lose them. Pretty simple, huh? And that is what I think we need to do for the manufacturers we represent. Make it too costly for them to become a competitor, and do the things for them that we hope our perfect customer will do for us. Both parties benefit.

My company evaluates our position with each of the manufacturers we represent by asking the follow- ing questions:

1. Do they manufacture a quality product?
   
2. Are they priced competitively?
   
3. Are they interested in growing with us?
   
4. Are they my partner, or is this only a one-way street?

Most of the manufacturers we represent fit favorably into the above criteria. And I dare say that they would concur that we are as important to them as they are to us. But for the cases where it is clearly a one-way street and no matter how much you support them, they still continue to operate in a manner that is inconsistent to your ideals, you have choices. You can continue your unbalanced relationship with them or find a better deal. If you can find a better deal, take it. If you can't, just make the best of what you have. No sense in beating your head against the wall. My guess is that if the manufacturer is not on board by now, there is little that you can do to change him. It always has been my opinion that you do business with someone for one of two reasons: you want to, or you have to.

As this is my fourth and final article in The PEI Journal as President, I would like to thank those of you who have commented favorably on my writing ability. And for those of you who think I should keep my day job, thank you for not commenting at all.

On a more serious note, I do want to thank the membership of PEI again for allowing me the opportunity to serve as your 2008 President. It has been a privilege and an experience I will never forget. I also would like to thank the PEI staff for its incredible support throughout the year. My wife Pat and I wish you all a happy holiday and good luck in 2009.

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The PEI Journal • Fourth Quarter 2008 • Volume 2, No. 4 • Contents are Copyright © Data Key Communications, Inc.
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