Tuesday, May 24, 2011

Barbarians at the Gate?


OK, now they've done it.

It's over. The business as I knew it has been irreparably damaged. Hell, we might as well pack up and leave. Get into a business with a future, like making Arnold Schwartzenegger movies.

PPAI has announced (gasp!) that (double gasp!) end-users will be allowed on the floor of Expo next January. Cue the Locusts, and the Four Guys on Horseback. I mean, END-USERS at Expo? What kind of Area Code 666 deal is this, anyway?

Everybody knows that the sanctity of the supplier/distributor relationship cannot be violated. I mean, what if an end user asks someone what "A" means? And what if the addled supplier actually TELLS them? Our pricing structure will end up in charred ruins.

Have you ever heard such Sam's Wholesale Club-sized baloney in your life?

Everyone is uncomfortable with change. And we all want to find a Time Portal that will whisk us back to 1989, when the business was "closed" and end-users didn't know an "A" from a "B". A quieter time, with less torque and less uncertainty.

Well Bub, that portal got destroyed in the great economic earthquake of 2008. So can we get over that and get on with our lives? The market has undergone such tectonic shifts that it barely resembles what it was 5 years ago. Our trade shows have to evolve as well, or they find themselves like New York, or Chicago--swept away by the tide of a changing business environment.

The value end-users bring is that they are the only link in the chain that actually makes a buying decision. The rest of us do our thing, and derive our living, AFTER the end-user says "I'll take it". Having them interact with us at the largest show in our market is a fundamentally good thing, as they can better understand what we do, how we do it, and how they can benefit from a dialogue with us.

But there's that Fear of the Unknown. "But they'll go around the reseller!" "We'll be marginalized!". Really? Does anyone who's looked hard at it truly believe that an emaciated Corporate Staff can effectively create and execute programs using promotional products and/or reward merchandise? Fat chance.

The rise of the reseller is in perfect alignment with all the "rightsizing" and "downsizing" and outright "whacking" that has occurred inside Corporate America. Resellers exist because end-users USED to have staff to handle all those reward/recognition/identity programs, and today they do not.

Resellers who want to limit dialogue are doing so at their peril. They cannot hold to a concept that they "own" the end-user because they do not. It's not YOUR customer--it's A customer with which you do business. And that customer has more information about product, program, and process than ever. This genie does not go back into the bottle.

I look forward to speaking with end-users next January. Assuming, of course, that Harold Camping isn't right THIS time, and the world actually DOES end on 10/21...


Pete

1 Comments:

Blogger john said...

You are right, the industry is changing for the very reasons you stated. Companies are continuing to use the web to self educate and they are dictating what they will pay for merchandise with their research. Opening the EXPO to end users only educates them even more. But for the distributor what are the advantages other than scaring the you know what out of them by the sheer size. How does the supplier now use the distributor to sell his procuct? The distributor channel in this industry is becoming more precarious.

4:55 PM  

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