Tuesday, April 17, 2012

The advantage of having a loose arrangement

A manufacturer is the clear number two brand in its market. Its dealers actually sell more of the number one manufacturer's product than theirs. To make matters worse, the manufacturer has very loose agreements in place with the dealers, allowing the dealers to really have no accountability.

Sound hopeless? Yes, unless the manufacturer takes advantage of the looseness and creates a new model—maybe they sell direct or put up company stores—whatever they think will help them grow. And since there is no binding agreement in place, they can do whatever they please. Maybe it’s not so hopeless after all….

Barry LaBov
LaBov & Beyond Marketing Communications and Training
Fort Wayne, Indiana

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