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.
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!
Use our know-how power for yourself – free of charge!
We have the largest showroom in the AIDC industry in Europe, plus plenty of training rooms and an event location....
We have the largest showroom in the AIDC industry in Europe, plus plenty of training rooms and an event location. If you like, we will be happy to train your new employees or your customers’ employees here. You will find an overview and a virtual tour of the showroom on our website. We built these facilities for you – but apparently this is not sufficiently known yet. We can work together to make your staff better, or we can make our facilities available to you, and you can organise your own training for your staff or customers. Just as you wish. We are also happy to take care of airport or train station transfers. Just get in touch with your sales representative and we will do something for you!
Pure delight
I am proud of my team! This time I don’t mean the team from Jarltech, but the team from our restaurant »Uwe & Uli – Zuhause bei uns«....
I am proud of my team! This time I don’t mean the team from Jarltech, but the team from our restaurant »Uwe & Uli – Zuhause bei uns«. The gastronomic guide »Frankfurt geht aus« from the Journal Frankfurt and the Genussakademie awarded us first place in the category »Rhein-Main – feine Küche (exquisite cuisine)«. The joke is that we were not even mentioned there before, but achieved first place right from the start, which really doesn’t happen very often. A two-page article was published about us, a pure hymn of praise. For the kitchen, the service, the atmosphere. We awaited the awards ceremony like toddlers, and now we finally hold it in our hands. Years of work, sweat and tears have paid off – finally, the recognition we always strived for. A warm shower on the soul. I am very proud and equally overjoyed to have made this project possible. Initially a necessity, then later a hobby – I am there every day. I am delighted about every comment, and also about the fact that the team constantly works towards providing an even better experience for the guests. Thank you, thank you, thank you – it needed to be said. Feel free to drop by: www.uwe-uli.de