How We Deal
October 20th, 2008 by Kevin O'Neill
How many times as a Sales rep have you walked in to a meeting with a Retailer and heard them say, “as a company we are looking to cut our costs next year”? Well if your hand isn’t up then I would like to talk to you after class! If I had a nickel for every time I heard about cutting costs………………oh forget it!
During these times of material increases, fuel surcharges, and increased labor rates every company is looking for ways to cut cost and increase margins. It seems to me that the first way they look to accomplish this task is by getting their suppliers to lower their price! Well this usually leads to a win-loss situation at both ends of the spectrum. For the supplier, in order to lower their price they may have to cut back on the quality of the product being produced, ultimately cheapening the product and decreasing it’s shelf life (total cost of ownership people!). No savings there for the retailer! For the Retailer, they may get the desired price they are looking for at the expense of the Supplier’s margins. Thus possibly pushing them out of business in the near future. No product from that Supplier anymore!
Well as I was walking one of my Retailer’s stores last week looking for better ways to help them protect their stores, it finally dawned on me! I can solve this solution of cutting costs in my space of total store protection by consolidating their vendors and installing the product myself (well not me but our Field Service reps). The next time your in one of your retailers store, count how many vendors they are using starting in the parking lot and working to the back room. They have vendors for cart corrals, bollards, fixtures, refrigeratoin, lighting, signage, hvac, etc. Not enough fingers on both hands to count how many vendors are helping build a store! Well that means several PO’s, multiple deliveries, managing orders and ultimately getting these products installed. Sounds like alot of cost doesn’t it……well it is! Add the cost if the product isn’t installed properly then the fixture gets damaged, and the dollars start to add up quick!
So the next time your buyer tells you that they are looking to save cost, tell them you have a possible solution! Consolidation of vendors can ultimately lead to cost savings.
November 30th, 2008 at 8:28 am
Nice post u have here
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