The single contact advantage
Single contacts offer manufacturers a "window" of opportunity
By Russell Bleeker -- Industrial Distribution, 4/1/1998
The North American industrial market represents a multi-billion dollar business annually. Manufacturers who want to continue being leaders in this field must be able to offer their clients the best servicing package. The best way to do that is to have a single contact person, what the Japanese simply call, "the window.''It is a system where a single contact person is assigned to represent the manufacturer and deals directly with the industrial distributor in responding to all its needs. Using the window, a manufacturer develops a long-term relationship with the distributor based on a complete understanding of a distributor's needs and how to help it. This idea has been tried successfully in other areas and could be mutually beneficial to both the manufacturers and three major distribution channels they are trying to service -- industrial, commercial and government. Traditionally, new or consistently strong product groupings would have individual sales reps promoting each line of products. This led to separate sales organizations or hierarchies that would then go forward, often without coordination among groups, trying to capture their particular markets.
The one-on-one contact servicing saves the client time and money in terms of vendor support, information services and sales incentives, while encouraging brand loyalty. The one contact system results in a healthier manufacturer-distributor relationship. The mutual benefit for both parties is the simplification of communication, while at the same time making it easier to offer competitive pricing with customized product packages.
In their advertising or public relations, many firms throughout industry use the word "big'' to showcase themselves. "We're big, so we're better than the other guy'' is the common pitch. Today, the manufacturer who is really big is the competitor who offers his client diversity in product lines. In this scenario, big does not relate to the size of the company or to its sales volume, but accentuates a new angle in manufacturing. For instance, the manufacturer who can offer a complete line of products will hold the competitive edge when his client calls the single contact person. By offering diversity in their product line they not only offer a more competitive product package, but also instill brand loyalty throughout their product makeup.
Using a single contact to sell a diverse product line offers a distinct advantage over the traditional sales structure of an organization. Being able to sell "packages" of products through a single contact which can be customized to a distributor's needs saves the distributor the costly, time-consuming process of making five different phone calls to five different salespeople. The beauty of a single contact is the evolution of the relationship in which both parties gain a better understanding of what they have to offer in terms of product needs and services offered. This in turn can lay the groundwork for a long and successful relationship.
A manufacturer who is big on product diversity is also the manufacturer who will be able to add sales incentives to a distributor's order. He can, for example, discount Product A to offset Product B's prices, thereby enhancing the overall price of the product package.
In dealing with government distribution channels, which make up a very cost-sensitive market, a manufacturer who can offer this type of flexibility has a major advantage. While a complex set of government requirements must be satisfied with a government distributor -- logistics, distribution points, specification conformity and contracts -- the manufacturer who understands the volatile nature of this cost-sensitive market will have a leg up on the competition.
The manufacturer who has the ability to enhance a sale with a competitive price package, while at the same time offering a diverse product lineup, has a better opportunity to not only increase the size of the sales order or reorder, but affect the overall sales volume for the company.
Overall, the single contact offers the manufacturer a window of opportunity that should not be lost.
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