A Win-Win for Equipment/Suppliers and Restaurants

Replies to This Discussion

Permalink Reply by Howard Appell on June 5, 2009 at 6:30am

Very often the Mfg. of equipment or supplies will approach a large chain like Darden (Olive Garden, Red Lobster) and sell them through a direct sale or through a distributor, basically bypassing the dealers. In this case the factory sells mass quantities at lower prices, benefit Mfg.

In cases where a Mfg. gets a lead from a local restaurant they will give it ti their local rep to handle who should either make the end user call and sale on behalf of a local dealer, benefit, dealer and rep.

In a former life I was a dealer and then a rep so I am familiar with both cases.

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Permalink Reply by Ray on June 8, 2009 at 2:02pm

Did you ever ask the large chains for any recommendations on what they would like to see in new products or services?

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Permalink Reply by Howard Appell on June 8, 2009 at 6:21pm

We would invite the buyers to attend trade shows and show them our new products for them to then specify.

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Permalink Reply by Dave Lee on June 16, 2009 at 12:05am

Hi Howard,

We're a start-up manufacturer of eco-friendly disposable tableware. Right now we sell directly to small mom/pop restaurants. Would you recommend I go through a manufacturer's rep who will help me source dealers or approach the dealer directly?

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Permalink Reply by Howard Appell on June 16, 2009 at 4:03am

Dave, selling direct to the restaurant in my opinion is the hardest way to go and the most dangerous economically. It is a mistake many new companies make because it seems like the right path to go as it brings you immediate sales. What you don't realize is that the dealers who should be your market will shy away from your products because you have set yourself up as their competition. The dealer has a greater influence on the end user than your company because the dealer supplies many products on a regular basis and can sway his customer to many companies that are not selling direct.

Selling directly to the dealer is also difficult in that you won't have a presence with the staff of the dealership and as the old saying goes, "out of sight, out of mind"

Using a rep is the best method in my opinion but it also has it's own set of conditions.
Pricing
Cataloges & literature
Commission
Selecting the right type of rep
Advertising & PR
Selecting the best rep and more

I would be happy to discuss these points and more with you if you would like to call me at 561 620-8888. I hope this helped you a little.

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Permalink Reply by Ray on June 17, 2009 at 8:21am

How do manufactures work directly with end users to discuss their existing products and new product requirements and even work together to develop new products?
Is the rep required for this to take place effectlvely?

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Permalink Reply by Howard Appell on June 17, 2009 at 8:26am

The rep is the conduit to the dealers and sometimes the end user. Trade shows and advertising will enable the mfg. to have contact with the end user. Being connected to trade organizations and being involved in the industry will give you insight to new trends etc.

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Permalink Reply by Ray on June 17, 2009 at 9:14am

Some reps must have great insights into what end users want in products and services. They want the dealers to promote their products and services and should be in a very good position to work with their manufactures to get better product and srvices for the end users. Does this happen and, if so, is it effective?

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Permalink Reply by Howard Appell on June 17, 2009 at 9:19am

I would say the rep being the driving force behind a new product is very rare. Usually the company comes up with the new product and the rep then is in a position to judge the dealers opinion of the product and pricing. Someone in the mfg. company has to be the leader on new products usually.

In the years that I was a rep the factory may have asked what do you think of this product at this price less than a dozen times. They just expect sales.

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Permalink Reply by Gary Halpern on June 17, 2009 at 11:41am

Hi Ray, it does work very well with some rep groups. I have seen many new product launches where specific independent and multi-unit customers are approached in different territories for this purpose. Having direct experience myself with manufacturers who had reps and those who did not see the need to hire them and pay a commission, I know early before new products are developed that a manufacturer selects those who they consider to be their top product end users and directly solicits their market feedback as well as direct advice and suggestions.

These days, with reps in the foodservice business carrying so many diverse lines, through no fault of their own, it may be difficult to keep the focus and get the endusers involved in the process in a timely fashion. Sometimes it is best left up to manufacturer to go directly to the end user through their preferred dealer/distributor or on their own with their regional salesperson.

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Permalink Reply by Ray on June 17, 2009 at 5:28pm

Gary,
Do you think we could use FobBoh to help manufactures interact directly with end users more effectively and bring better products and services to restaurants?

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Permalink Reply by Gary Halpern on June 17, 2009 at 5:57pm

Absolutely! It will be a challenge and take some time but is definitely achievable through social media.

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