Love the comment on what partners without differences really are: competitors. For cooperation to overcome competition, there needs to be equitable compensation. Blurriness can lead to both sides imagining taking more of the total partnership margin. Say a value added distributor sells a product with hands on attention, and high margin. But, manufacturer realizes the distributor’s profit is 3–4X the manufacturers profit. Incentive to go around the current distributor? But the manufacturer has no means of maintaining a high attention sales effort. Get new distributors? Maybe kill the facilitated sales made possible by the first distributor. Blurriness on both ends.
Distributors had their way of doing things, and they were very skilled. Manufacturers had a different way and were also very capable.
So what's the difference between "skilled" and Capable"? Have you started a bias in your so-called rant?
The pandemic exposed much of we already knew about the manufacturer/distributor relationship. Distributors have to create a new narritave to remain relevant in the new digital normal world. That's the challenge, in my opinion.
Love the comment on what partners without differences really are: competitors. For cooperation to overcome competition, there needs to be equitable compensation. Blurriness can lead to both sides imagining taking more of the total partnership margin. Say a value added distributor sells a product with hands on attention, and high margin. But, manufacturer realizes the distributor’s profit is 3–4X the manufacturers profit. Incentive to go around the current distributor? But the manufacturer has no means of maintaining a high attention sales effort. Get new distributors? Maybe kill the facilitated sales made possible by the first distributor. Blurriness on both ends.
Distributors had their way of doing things, and they were very skilled. Manufacturers had a different way and were also very capable.
So what's the difference between "skilled" and Capable"? Have you started a bias in your so-called rant?
The pandemic exposed much of we already knew about the manufacturer/distributor relationship. Distributors have to create a new narritave to remain relevant in the new digital normal world. That's the challenge, in my opinion.