As a make-to-order manufacturer, your authorized dealers are the backbone of your business. They are your link to customers and are vital in getting your products to market. That’s why it’s important to ensure they receive the proper support to make their job more efficient to increase sales.
Expanding your authorized dealer network is as important to your business as supporting your current network. Whether you enter new markets or are faced with dealer attrition, you could require new or extended sales representation.
In this blog article, we will look at problems you may encounter with manufacturer-dealer relationships. We will discuss how to support authorized dealers and explore ways to find new dealers to keep your sales going.
5 Reasons Why Dealer Relationships Go Sour
Despite your best efforts, issues can arise between your company and your authorized dealers. It’s important to recognize and address these challenges to maintain a healthy working relationship. Here are some common reasons problems arise:
1. Communication Breakdowns
Miscommunication can lead to frustration and order errors. Neither is good for your make-to-order business. Establish clear communication channels with your authorized dealers to ensure that both parties are on the same page. Regular check-ins, updates through dealer portals, and consistent messaging can help in mitigating these issues.
2. Product Availability and Delays
Delays in product availability can strain relationships. Without access to information like production schedules, inventory, or delivery dates, authorized dealers are essentially selling in the dark. Keep your dealers informed with crucial details that affect the sale and timely deliveries. Providing access to integral data can make a difference in the sale, as well as the relationship.
3. Discrepancies in Pricing
Pricing transparency is essential to avoid disputes with your authorized dealers. Clearly outline pricing structures and communicate any changes well in advance. Using tools like dealer portals or Configure Price Quote (CPQ) software helps ensure accurate pricing is always used. This ensures that there are no surprises and helps in maintaining trust with your dealers and customers, in turn.
Lack of product availability and delivery delays can lead to frustration for authorized dealers and their customer base.
4. Difficult Quotation and Sales Process
A complex or slow quotation and sales process can frustrate dealers and hinder sales. Simplify and automate the quoting process as much as possible with tools that generate quotes quickly and accurately. Ensure that your system is user-friendly to make it easier for dealer quotation management. This will lead to increased satisfaction and better sales performance.
5. Support and Service Issues
If authorized dealers feel unsupported, they may become disgruntled. Regularly check in with your dealers to address any concerns and provide the necessary support. Ensure your technical and customer service teams are responsive and capable of solving problems quickly.
Supporting Your Current Authorized Dealers
Supporting your current authorized dealers involves providing them with the tools, resources, and incentives they need to succeed. Here are some strategies to help you achieve this:
Training and Resources
Ensure your dealers are well-trained and knowledgeable about your current and new product lines, as well as the software systems you require. Offering regular training sessions can keep them updated on new developments and best practices. Providing easy access to manuals, FAQs, online training, and other resources can also empower them to serve customers better.
Effective Communication
Maintaining open lines of communication is crucial. Use dealer portals and CRM systems to keep your dealers informed about new product lines, promotions, and updates. Regular newsletters and meetings can also help in keeping everyone on the same page.
Visibility to Vital Information
Provide your authorized dealer network with access to vital information needed for quote generation and sales order management.
Offering Incentives
Motivate your dealers with incentives such as discounts, bonuses, or exclusive offers. Recognizing and rewarding their efforts can boost their morale and loyalty. Incentives can also encourage them to push for higher sales and better customer service.
Providing Technical Support
Robust technical and field support can help dealers troubleshoot issues quickly and efficiently. Having a dedicated support team that can respond to their needs promptly will
Marketing Support
Assist your dealers with their marketing efforts. Provide them with marketing materials, co-op advertising funds, and help them plan local promotions. This support can help them attract more customers and increase sales.
The Importance of Acquiring New Dealers
Expanding the dealer network is a strategic move that can drive long-term success. By obtaining new authorized dealers, manufacturers can ensure sustained growth, improved market presence, and a more resilient business model. Benefits include:
Adding new dealers to your network helps your make-to-order business expand its reach into new markets for higher sales.
Market Expansion
New dealers can help manufacturers tap into new geographic areas and market segments. In doing so, your company can serve a wider audience and meet the needs of different customer bases.
“By partnering with established dealers, businesses gain immediate access to a vast customer base, facilitating quicker product launch and adoption,” notes dealer network expansion professional John Buttery. “This strategic move speeds up market penetration and provides a competitive edge in rapidly capturing market share.” Having a presence in more locations allows you to reach more customers and increase your sales potential.
Increased Sales and Revenue
More dealers mean additional sales channels, which can lead to higher sales volumes and increased revenue. Authorized dealers can effectively promote and sell your custom products, driving growth and boosting your bottom line.
Brand Visibility and Recognition
Having a broader network of dealers enhances brand visibility and recognition. As more dealers carry and promote your product lines, brand awareness increases. This makes it easier for customers to recognize and trust the brand.
Risk Mitigation
Relying on a small number of dealers can be risky. If one dealer faces challenges or decides to stop selling your products, it can significantly impact sales. Diversifying the dealer network spreads the risk, ensuring that your company is not overly dependent on a few partners.
Innovation and Feedback
New dealers can bring fresh perspectives and innovative ideas to the table. They can provide valuable feedback on products and market trends, helping you improve your product offerings and stay competitive.
Strengthened Customer Relationships
A larger dealer network means more touchpoints for customers, making it easier for them to access products and services. This can lead to stronger customer relationships, increased customer loyalty, and higher sales volumes.
5 Ways to Attract New Authorized Dealers
Attracting new authorized dealers is essential for expanding your market reach and boosting sales. By offering competitive terms and showcasing the success of your current dealers, you can draw in new partners who can help grow your business.
1. Targeted Recruitment
Identify potential dealers who align with your products, brand, and values. Use industry events, trade shows, and online platforms to connect with potential dealers. Building relationships with these prospects can help convince them to join your network.
2. Offering Competitive Terms
Make your dealership agreements attractive. Offer favorable terms, competitive pricing, and support packages that stand out from the competition. This can make your offer more appealing to potential dealers.
3. Showcasing Success Stories
Highlight the success stories of your current authorized dealers. Testimonials and case studies can demonstrate the benefits of partnering with your company. Seeing real-world examples of success can be very persuasive.
4. Providing a Clear Value Proposition
Clearly communicate the benefits of becoming an authorized dealer for your brand and products. Explain how they can grow their business by partnering with you. A strong value proposition can make your offer more compelling.
5. Simplifying the Onboarding Process
Make the onboarding process for new dealers as easy as possible. Provide comprehensive training and support to help them get started quickly and efficiently. A smooth onboarding process can set the tone for a successful partnership.
How to Find New Authorized Dealers
Finding new dealers for your products can be accomplished through several strategies:
- Industry Trade Shows and Events: Attend industry-specific trade shows and events to network with potential dealers. These venues are excellent for meeting businesses interested in carrying your products.
- Online Research and Direct Outreach: Identify potential dealers through online research and industry directories. Reach out to them directly via email or phone to introduce your products and discuss potential partnerships.
- Referrals: Ask your current authorized dealers or industry contacts for referrals. Personal recommendations can be a powerful way to connect with new dealers who are already trusted within the industry.
- Advertising and Marketing: Use targeted advertising and marketing campaigns to reach potential dealers. This can include digital marketing, trade publications, and social media platforms.
- Dealer Recruitment Programs: Develop a formal dealer recruitment program that includes incentives for new dealers to join your network. Highlight the benefits of partnering with your company and provide clear information on how to become an authorized dealer.
Frontier Modules Make Dealer Management a Snap
Managing an authorized dealer network can be complex. Frontier ERP and its modules simplify this process, making it easier for manufacturers to support their dealers. Frontier eQuote Dealer and eWebServices integrate directly with Frontier ERP’s robust functions for enhanced authorized dealer management.
- eQuote Dealer: A ready-to-use software solution that integrates effortlessly with the Frontier ERP system. eQuote Dealer removes the extra steps, helping authorized dealers streamline the quoting process, order submission, order management, and credit checks. eQuote Dealer’s automated processes save time, reduce production errors, and shorten lead times from quote to delivery.
- eWebServices: This module allows you to put the power of Frontier ERP into your own branded website or dealer portal. Two-way API data transfers ensure that all information is available in real time. Since it runs on your branded system, you can customize your authorized dealer portal with specific data from the Frontier ERP system.
eQuote Dealer and eWebServices share many of the same features for streamlined dealer quotation management. They include:
Centralized Communication: Frontier ERP provides a centralized platform for all communications between manufacturers and authorized dealers. This ensures that everyone stays on the same page, reducing the chances of miscommunication and errors. Both modules provide dealers with the latest information at their fingertips. This includes real-time updates on product pricing, inventory, and delivery dates.
Frontier ERP with built-in CPQ provides you with the most flexibility for complex product configurations.
Streamlined Quoting Process: eQuote Dealer and eWebServices allow authorized dealers to create and send quotes both quickly and efficiently. Frontier ERP’s built-in CPQ software automates the quoting process, reducing the time it takes to generate quotes accurately. Dealers can customize quotes to meet specific customer needs, improving customer satisfaction and increasing the likelihood of closing sales.
Enhanced Product Visualization: When integrated with your CAD software using Frontier CADFlow, the product configurator allows dealers to provide customers with a 3D product view during the quoting process. This allows customers to be a part of the actual design process, making choices and modifications in real time. This encourages their engagement and ensures that the product is exactly what they want. Both authorized dealer modules have this capability.
Sales Order Management: Frontier ERP modules simplify order management since the orders are processed through a single platform. Dealers can place orders, track order status, and manage deliveries seamlessly. This integration reduces administrative burdens and ensures that orders are processed efficiently and accurately.
Enhanced Reporting and Analytics: The Frontier platform provides advanced tools for reporting and analytics. These tools help manufacturers and dealers access insights into their sales performance, customer behavior, and market trends. These insights help dealers make data-driven decisions, identify growth opportunities, and improve their overall business strategies.
Simplified Onboarding: The user-friendly Frontier enterprise system makes onboarding new dealers straightforward and efficient. New dealers can quickly access training materials, set up their profiles, and start using the system with minimal downtime. This ease of onboarding helps manufacturers expand their dealer networks rapidly and effectively.
Would you like more information on Frontier ERP or our authorized dealer modules?
Conclusion
Your authorized dealer network is key to expanding your reach as a make-to-order manufacturer. By addressing potential issues proactively, providing excellent support, and maintaining clear communication, you can build strong, mutually beneficial relationships with your dealers. This, in turn, will help you grow your business and reach new markets.
By using these strategies, you can help your authorized dealer network succeed and keep your business growing.
Frequently Asked Questions
What does authorized dealer mean?
An authorized dealer is a business or individual officially allowed by a manufacturer to sell its products. This permission often includes access to exclusive products, branding, marketing materials, and requirements for training and customer service. Authorized dealers receive support from the manufacturer, including training, technical help, and marketing resources.
What is an ERP system?
An ERP (Enterprise Resource Planning) system is software that helps you manage and integrate essential business functions like finance, sales, supply chain, and manufacturing. ERP systems centralize information and processes, improving data accuracy, efficiency, and decision-making, thus streamlining operations and boosting productivity.
What is a dealer portal?
A dealer portal is an online platform provided by manufacturers to their authorized dealers. It offers access to product information, pricing, inventory levels, order processing, marketing materials, and training. Dealer portals improve communication and collaboration between manufacturers and dealers, making the sales process more efficient.
Does Frontier ERP have authorized dealer modules?
Yes, Frontier ERP includes both eQuote Dealer and eWeb Services modules. These tools simplify dealer management by centralizing communication, quoting, inventory management, order processing, and support. It helps manufacturers support and manage their authorized dealers effectively, streamlining operations and growing their dealer network.
