And now, a word from Vince Lombardi...
Vince said it best:
Yeah--what indeed? An informal survey of reps and suppliers says that business is "tough". Now, before anybody starts playing the violins 2008 is not as good (so far) as 2007 because 2007 was a very good year.
But it's such a bizarre time right now--and it's in no small part because of the "transparency" of most Brands. Simply put, there are so many ways to access Branded merchandise that the incentive market "specialists" are in full competition with our own companies. This does not bode well.
One trip to Amazon, or to Google will get the customer any amount of information about just about any Brand you care to mention. You say the Special Markets Manager at Brand X is uncooperative? The Hell with him--let's go buy it at ourpricesareinsane.com. Don't like the prices you're paying from the Premium Rep? No worries--log onto webuyitbetterthanyou.com and you're good to go.
Looking for the Prime Example? Look at Apple iPods. Hysterical demand. But there are so many places to access iPods it's crazy. And pity poor Incentive Concepts, who actually has an agreement with Apple to distribute it into our channel. So clients decide not to go through the front door and instead find it everywhere.
It's all because our market has zero barriers to entry. How many times have you seen a Brand enter our market at some trade show, then exit soon thereafter? It's because it didn't cost them much to enter our business and it costs them even less to exit it.
And here's the REALLY scary part: Take away the Channel Specialist from any Brand and you know what happens? Nothing-for a period of time. The momentum we build up within our Divisions will go on even if we exit. Yeah, yeah--sooner or later the Brand will suffer from a lack of leadership and vision, but how much suffering?
Any Special Markets Manager should be materially concerned about this, and at some point all Brands start wondering if the fixed resources spent in our market might not be better used elsewhere. And don't hit me with the "we make more profit" argument--because that's not how it's being viewed by senior management.
It's not "how much profit are we getting?"--it's "how much business would we still get even if we don't spend ANYTHING in that channel?" and the answer might be "more than you think". Take me away from Samsonite's business and for a year, maybe 18 months we might not lose all that much business. And think of the fixed costs we'd save.
Vince is right--and as Professionals we need to consider new arguments to keep our companies interested in our market as a viable, internally-managed business. We're all one phone call from going away...
Pete
Yeah--what indeed? An informal survey of reps and suppliers says that business is "tough". Now, before anybody starts playing the violins 2008 is not as good (so far) as 2007 because 2007 was a very good year.
But it's such a bizarre time right now--and it's in no small part because of the "transparency" of most Brands. Simply put, there are so many ways to access Branded merchandise that the incentive market "specialists" are in full competition with our own companies. This does not bode well.
One trip to Amazon, or to Google will get the customer any amount of information about just about any Brand you care to mention. You say the Special Markets Manager at Brand X is uncooperative? The Hell with him--let's go buy it at ourpricesareinsane.com. Don't like the prices you're paying from the Premium Rep? No worries--log onto webuyitbetterthanyou.com and you're good to go.
Looking for the Prime Example? Look at Apple iPods. Hysterical demand. But there are so many places to access iPods it's crazy. And pity poor Incentive Concepts, who actually has an agreement with Apple to distribute it into our channel. So clients decide not to go through the front door and instead find it everywhere.
It's all because our market has zero barriers to entry. How many times have you seen a Brand enter our market at some trade show, then exit soon thereafter? It's because it didn't cost them much to enter our business and it costs them even less to exit it.
And here's the REALLY scary part: Take away the Channel Specialist from any Brand and you know what happens? Nothing-for a period of time. The momentum we build up within our Divisions will go on even if we exit. Yeah, yeah--sooner or later the Brand will suffer from a lack of leadership and vision, but how much suffering?
Any Special Markets Manager should be materially concerned about this, and at some point all Brands start wondering if the fixed resources spent in our market might not be better used elsewhere. And don't hit me with the "we make more profit" argument--because that's not how it's being viewed by senior management.
It's not "how much profit are we getting?"--it's "how much business would we still get even if we don't spend ANYTHING in that channel?" and the answer might be "more than you think". Take me away from Samsonite's business and for a year, maybe 18 months we might not lose all that much business. And think of the fixed costs we'd save.
Vince is right--and as Professionals we need to consider new arguments to keep our companies interested in our market as a viable, internally-managed business. We're all one phone call from going away...
Pete
posted by Pete Mitchell at 1:17 PM
0 Comments:
Post a Comment
<< Home