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Relieving tensions

Easing manufacturer-distributor tensions is easy to say, hard to do. Or is it?

By Michael Schaffer -- Industrial Distribution, 2/1/2005

The cleaning and maintenance (jansan) industry is vibrant and growing—with estimates of U.S. annual revenues ranging from $100 billion–$200 billion.

However, it is also currently experiencing some of its greatest upheaval in decades. The center of the storm involves the increasingly tense relationships between the manufacturers and the distributors that sell to the end customer, the Facility Service Provider.

For many jansan distributors, these tensions and problems have been accentuated because they are fighting for their very business survival. There has been a 70 percent decline in the number of jansan distributorships in the United States in the past decade. Some of this is the result of mergers and acquisitions, but much of it is simply the result of distributors going out of business.

One reason for these changing business conditions is the fact that FSPs are buying from fewer and fewer suppliers. Additionally, many FSPs find they can purchase some or all of their cleaning supplies at big-box wholesalers—especially when no training or value-added services are required. And some jansan manufacturers have even taken to selling their products directly to end customers, skirting around the distributors altogether.

While many jansan distributors are struggling, some manufacturers do not appear to respect the close working relationship distributors tend to develop with FSPs. This lack of understanding results in even greater strife.

For many distributors and FSPs, the jansan industry is still made up of thousands of mom-and-pop businesses. Some larger manufacturers in our industry no longer have an appreciation for this fact. In addition, they want more direct control and involvement over the entire sales process, not recognizing or realizing the value of the relationships already established between distributors and their customers.

However, much can be gained for both distributors and manufacturers in the jansan industries if they can begin working more closely together to diminish their differences. Doing this can help relieve some of the tensions and fears found on both sides.

An example of just how this can be done is the relationship we at Tornado Industries have developed with a large distributorship, Hy-Grade Distributors, Inc., of Tonawanda, N.Y.

Hy-Grade has proven to be a leader in the industry, showing a strong standing commitment to helping their customers get what they need.

Working with Hy-Grade as well as similar jansan distributors, our first goal is to make sure they know that we as a manufacturer place an extraordinarily high value on their role in our industry. We work with them directly and take the steps necessary to recognize and value the close ties these distributors have with their customers.

Together, we are meeting and resolving many of our industry's manufacturer and distributor challenges and problems head-on. We fully realize that distributors such as Hy-Grade look to us for quality products and services and are our lifeline to the customers.

With this understanding, the relationships between manufacturers and distributors can grow and become stronger and more profitable. Ultimately, it just boils down to old-fashioned business-to-business values, respect, and focusing on our mutual goal: helping the end customer.


Author Information
Michael Schaffer is president of Tornado Industries, Chicago, a manufacturer of vacuum cleaners, carpet extractors, floor machines, and other cleaning tools and equipment. He can be reached at (708) 867-5100.

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