Just parts ... or a part of your business? What the package you sell says about your business?

What the package you sell says about you

What is "the package?" On the most basic level, many manufacturers and distributors see the package as a triumvirate of tangible products - the lock, door closer, exit device - that function together to facilitate entrance and egress. From this standpoint, the package begins and ends with the architectural specifications.

There is a more holistic view, however. When selling the package, some distributors and manufacturers see more than pieces of metal. To them, the package is everything that is required to produce and maintain an end result - effective, lasting door control - and satisfied customers. From this perspective, there is more to the package than hardware. In reality, the package is a combination of product, service and price.

PRODUCT - THE FREEDOM TO CHOOSE

Even though it is widely understood that the package consists of the lock, door closer, exit device and other related products, there is certainly no standard, one-sizefits-all combination of these products. The package must meet the specific needs of each opening, and these needs change from application to application. Literally, there are thousands of hardware combinations that could fit the requirements of each entrance.

One responsibility of the distributor is to identify the best performing combination of hardware for a price that meets the budget and returns a profit. Implicit in this informal contract is the end-customer's assumption that the distributor is looking at several different options before recommending one.

Sometimes, the best package comes from a single manufacturer. However, at times the ideal solution for the opening involves a lock from one company, a closer from another manufacturer and an exit device from still another. This is similar to buying stereo equipment. On occasion, it makes sense to buy a rack system in which one manufacturer provides all the components. But in most cases, a consumer can create a stereo system by opting for individual stereo components. The result is a customized system that features the best brands of individual components and an overall Functionality that is exactly what is desired.

Along these lines, distributors tied to only one manufacturer offer packages from one source, providing one company's lock, for example, in conjunction with that company's door closer and exit device. A particular manufacturer's lock may be ideal for an end-user's purpose, so he will tend to work with a distributor that carries this product. However, if the distributor sells only one manufacturer's products in a package, the exit device and door closer products, while adequate, may not be the best selection for the application.

Distributors who consistently choose to limit their packages to products from one manufacturer are limiting the options and products they have available to their customers. This may not be in the best interest of the distributor or their customer. Similarly, a manufacturer that influences a distributor into the purchase of "the package" may be doing the distributor a disservice. Being unwilling to supply individual components in favor of the entire package is not supporting the ability of the distributor to best serve his or her customers.

The building team has the freedom to decide which architectural hardware distributor they use on any given job. To compete in this market, distributors need to give themselves the freedom to select the ideal manufacturers to meet their own needs and their customers' needs.

SERVICE - THE HIDDEN PART OF THE PACKAGE

As noted, every situation and every customer has a different set of needs. It is in the distributor's best interest to help that customer sort through those needs, define the expectations and budget parameters, present and help choose products that meet the requirements and then supply the solution. It is evident: the distributor is not just selling a product...he or she is selling a service. It is an integral part of the package.

Service does not stop after the product is purchased. Education must be part of the package. The distributor should be available to support the building team. For example, distributors can make their package more valuable by being on site to demonstrate how to properly install and adjust the products supplied. Ongoing service is a continuing part of the package.

In the same light, manufacturers must include in their package marketing support for the products distributors are selling. This marketing support must be in the best interest of both the distributor and the end-user. Technical support is also important - whether it is on-site or over the phone. Manufacturers should also provide educational opportunities for distributors through product seminars or other educational avenues.

By providing the types of service outlined above, strong business relationships will develop based on mutual growth. When a manufacturer supports a distributor and helps him or her do abetter job, the end-customer will benefit. Without this focus on service, the manufacturer becomes merely a supplier; the distributor simply becomes a delivery person. These situations do not position either company for long-term growth. Over time, relationships based on mutual benefits will last longer than buyer-seller arrangements based only on product and price.

PRICE - ALWAYS THE BEST DEAL?

Product and service do not discount the important role that price plays in the package. Each project has a specific price parameter that the package must fall within. A package of the world's best products and unparalleled service are of little value if it does not fit within the bottom line. Single-manufacturer packages may have price benefits. Convenience and efficiency may be realized for the distributor and manufacturer. But does the lower price necessarily mean the end-user is getting the best package for his or her money? As noted above, putting together the ideal combination of hardware is possible when a distributor can choose products from many different manufacturers. Distributors must ask themselves, "If I were the customer, does the lower price compensate me for limited selection?" In some cases, the answer is yes. But sometimes, the answer is no. Distributors must consider whether manufacturers, through package-buying incentives, are exerting pressure to encourage the distributor to use its products where another manufacturer's products would best serve their customers' needs.

Part of the price equation is profit. While it is human nature to search out the best deal, there exists an understood level of profitability between manufacturer and distributor, and between distributor and end-user. The profit assumption fluctuates according to the quality of the product and service. If a package consists of carefully selected products at a fair, competitive price and quality service before and after the sale, the distributor should be able to enter into profitable long-term relationships. Manufacturers that support this distribution model will reap benefits as well.

Selling the package is not an event that merely involves a purchase order and a delivery. It is a process that combines the product, service and price as part of an ongoing relationship.

A healthy business relationship has two committed partners sharing in each other's success. As independent sales and marketing companies, distributorships should embrace business practices that lead to total satisfaction for their customers. As their customers' needs grow, the distributorship will grow. And as distributors grow, manufacturers will grow.

The total package tells customers a lot about the way a distributorship is run. It shows how much independence a distributorship asserts in selecting products. It shows the level of service a distributorship provides. And it shows if a distributorship's prices are competitive for the value received.

What does your package say about you?