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Let me tell you how your business runs.

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  • Let me tell you how your business runs.

    I work for a distributor. We mainly handle whole goods and parts for small engines, but we also handle various other smaller product lines and some aftermarket stuff as well.

    Our position in the market is pretty simple: Company A wants to sell Product B in Country C where they do not have a presence of their own. Rather than spend boatloads of time and money to set up manufacturing plants and distribution centers and build dealer networks themselves, it is much faster and more cost effective to use an existing distributor who already has a large and well established customer base to sell to. That's where we come in. Company A sells their products to us, we sell their products to dealers, and the dealers in turn sell those products to the customer. We are the middle man, and as much as people like to gripe about our existence inflating the costs of things, our link in the chain of product custody does provide an essential step for companies to quickly get their stuff around the globe without having to lay out tons of money to do so.

    As such, our clientèle are almost exclusively dealers -- the stores you'd buy stuff from. We do get calls from end users looking to get parts, but we instead refer them to a dealer. Most people are perfectly fine with this -- in fact, they usually prefer it for being much more convenient to go to a dealer in their own city instead of having to deal with us, where we may be a considerable distance from the customer. We have a map program within which we have set up the locations and information of every dealer we have across the country, so we can find the closest one to the customer very quickly just by entering their city or postal code.

    There are some, however, who are not fine with it. They just can't accept that we can't sell to them. Some even go so far as to assert that I'm lying to them when I say that we can't sell to the public. Technically, I can sell to the public at my discretion, such as when a customer is located in some ridiculously remote area where there isn't a dealer that sells what they want for hundreds of miles in any direction. We're okay with that because then we're not really taking business away from any dealers because there aren't any dealers within a reasonable enough distance to take business away from. But for all other cases, as a matter of policy, we do not sell to the public because, after all, if we sold to every customer that asked, dealers would have no reason to buy from us because we can sell to customers cheaper than they can. This is not a very good business model.

    As you've probably guessed from the mere fact that I'm posting this here, I got one of these latter-type SCs today. The conversation went like this:

    Me: "Mindfield speaking, how can I help you?"
    Him: "Yeah, I need a shortblock for my <brand> engine model <model #>."
    M: "Okay, I can certainly locate a dealer close to you."
    H: "I want to pick it up from you."
    M: "I'm sorry, but we can't do that. We don't sell to the public."
    H: "Well why not?"
    M: "Because we are a distributor. We only sell to dealers."
    H: "Well that's a hell of a way to run a business."
    M: "That's the way all distributors work."
    H: "No it's not."
    M: <smacking forehead> "Actually, yes it is. Distributors sell to dealers, and dealers sell to customers like you."
    H: "You can just sell directly to me."
    M: "Um, no, we can't. We would be selling out from under our dealers. If our dealers knew that they wouldn't buy from us."
    H: "You don't have to advertise it to them."
    M: "It's company policy. We work on an account holder basis only. You must have a dealer account with us to buy from us."
    H: "Fine. Bye."

    Obviously I'm just the idiot answering the phone, which I've been doing for over two years, so what the hell would I know about how this place works?

    I am lucky in that, because end users aren't our customers (not directly, anyway) we don't have to be nice and agree to everything they say or request. I can't be outright rude or tell them off, but neither do I have no put up with asshattery. It's not like we would lose business anyway; the customer needs what the customer needs, and they have to get it from a dealer, who has to get it from us, so we get the sale either way.

    ----

    Bonus Snerk

    Not an SC by any means, just an amusing, poorly-phrased question in which a woman calls up and asks, "Hi, I'm looking for parts for my husband." I responded, "Um, I think you may have called the wrong sort of parts place." A good chuckle was had.
    Last edited by Mindfield; 10-25-2007, 02:55 PM.

  • #2
    Quoth Mindfield View Post
    Not an SC by any means, just an amusing, poorly-phrased question in which a woman calls up and asks, "Hi, I'm looking for parts for my husband." I responded, "Um, I think you may have called the wrong sort of parts place." A good chuckle was had.
    *snicker*

    Good answer.

    ^-.-^
    Faith is about what you do. It's about aspiring to be better and nobler and kinder than you are. It's about making sacrifices for the good of others. - Dresden

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    • #3
      Quoth Mindfield View Post
      Not an SC by any means, just an amusing, poorly-phrased question in which a woman calls up and asks, "Hi, I'm looking for parts for my husband." I responded, "Um, I think you may have called the wrong sort of parts place." A good chuckle was had.
      Could you have gotten away with "Hydraulics"?
      ludo ergo sum

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      • #4
        Holy moly! If it wasn't for the fact that you distribute for someone who brings it into the country for you, I'd be looking around my office to see who you were.

        We wholesale wholefoods to independent retailers for the most part. We sell to private individuals or food groups on a similar basis to yours, though we work on a ten-mile radius as a guide. Food shops that we supply are in most places, after all. The amount of people who can't understand that "Well you just don't have to tell them that you're selling to me," often translates into, "I saw your truck - the one with the logo on the side? - delivering to someone who no longer shops with me because she's getting it cheaper, so I'm going to go to a different wholesaler," is astounding.

        They also don't seem to realise that a purchase of a Kg of almonds, a single case of drinks, and maybe a three Kg bag of rice is not what we describe as bulk sales.

        Oh, and we don't post it out. Yes, it's the modern age, but we don't have a system for selling food via an Amazon-type deal. (Actually, one of the people we supply sells certain items through Amazon marketplace, but it's not us doing it). Food is heavy, see? Postage costs. Food is relatively cheap, apart from the really extravagant items. Sure, go to one of our competitors who does sell individual items via the post - oh, you have done. Expensive, aren't they?

        "Well, then, can I have a catalogue anyway? What do you mean 'commercially confidential information'? I want to know what my local shop is paying for their goods!"

        Rapscallion

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        • #5
          Ah, that's another aspect of my job. Customers calling up for pricing. Now, we do list a manufacturer's suggested retail price in our system -- in fact, that's the only thing that comes up when I look up a part, because different dealers get different discount structures based on whose part/product they're ordering and what sort of volume dealer they are. However, customers call up wanting to know the price, and to make things simpler than having to go into an explanation of why we can't give them pricing, I simply say "I'm sorry sir, but we only deal in wholesale prices." Some dealers charge more than MSRP so I can't very well give out the MSRP when their dealer sells for more. Then they'll go bitching our dealer, who will come bitching at us for giving out price information. Fortunately I've never gotten anyone who complained about that; surprisingly, people around here seem to know to back away when I start talking about wholesale pricing -- probably because everyone pretty well knows no one gives out that information if you're not in the business.

          We don't have delivery trucks though; we use standard couriers and shipping companies to send parts out, primarily because we send stuff all across the country, so it's much cheaper. The only hangup with that is selling pre-filled batteries, which are labeled as dangerous goods by these companies and are therefore very expensive to ship. Whenever possible, we get our outside sales reps to deliver those.

          But yeah. We do take orders of just a few bucks for dealers -- that's just a part of the business; the guy needs a part to fix a unit, and it may just be a cheap part but he still needs it, so that's just something we have to deal with. But just as often we get orders between $200 and $20,000, so it all balances out.

          My favourite customers are the ones who just walk in and expect to get a part right then and there, and I have to explain that it doesn't work that way. I invariably get the, "But I drove all this way" whine, to which I always want to respond, "I trust then that the convenience of a telephone is no longer wasted on you," but that would be a bit too snarky.

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          • #6
            I work at a manufacturer who use distributors to, well, distribute our product. Besides all of the terrific reasons other posters have mentioned, there is also the PITA factor. With the time it takes to set someone up and take payment info, get shipping info, etc, I could have been spending my time helping our legitimate distributors who purchase thousands of dollars of merchandise yearly vs. the one $20.00 sale an end user would like to make. That's just my two cents.
            A lion however, will only devour your corpse, whereas an SC is not sated until they have destroyed your soul. (Quote per infinitemonkies)

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            • #7
              Quoth Mindfield View Post

              Bonus Snerk

              Not an SC by any means, just an amusing, poorly-phrased question in which a woman calls up and asks, "Hi, I'm looking for parts for my husband." I responded, "Um, I think you may have called the wrong sort of parts place." A good chuckle was had.
              my dad works at a tractor/bike/it has an engine but isn't a car, shop.
              and he constantly has wifes call in and say that their tractor is broken. my dad will ask what kind of tractor it is and they say "its green!"
              okay, baby steps. what does it say on the side of said tractor? if its a hard word just spell it.

              usually the husbands in the background and the wife has to be the mediator for the call. just put your hubby on the bloody phone!

              the best is when one lady called in and told my dad some kind of lawnmower was broken only to find out its a generator, not a lawnmower.
              it's said that no sane person could bite another person and draw blood. I've done it before, but then again sanity has always been questionable in our family.

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