Thursday 5 December 2013

THE VALUE OF A DISTRIBUTOR..PAST & PRESENT..

Dear Folks..(*and other dealers..)

In the good old days there were specialist dealers who through product knowledge and experience,formulated their own product choices to sell using a variety of distributors..

The distributors supported the dealer by holding stock and indeed offering training on certain  products IF it was required..

Invariably,the dealers had showrooms where they could show their solutions and explain their service..they had autonomy..and often-uniquety of product...

Over time,customers saw quite clearly who was a specialist dealer..who offered the best product mix..invariably this decision was by demonstration at the dealers facilities..the eyes and ears did not lie..:-)

For me,many years ago..I had my preferences in the u.k..the Listening Rooms..the Cornflake shop...Absolute Sounds.(*who I am now affiliated with..)..Fantastic dealers with a superb selection of products..

In my opinion,these three companies were miles in front of anyone else..and still are in the U.K.

Of course,other folks may have their own favourites-but the key thing here is the choice to have such and determine for yourself..the "Best"...

This was the fun of A.V. for me..going to the different showrooms and experiencing different set ups..different products etc...

..Of course,there are still these companies...there will always be specialist companies with unique solutions..Projectiondreams is proud to be one of these type  of companies...

BUT...I see a worrying trend emerging in certain parts of Europe that can all but kill uniquety and specialisation..the distributor showrooms....sometimes called "Experience Centers".

This is where a distributor fits out a showroom with the products they distribute..here they show the public..essentially make the pre lim sale- then pass the work to the "appropriate" dealer...

Straight away the dealer becomes the installer for the distributor..as opposed to a specialist SUPPORTED by a selection of distributors to achieve the product blend THEY want...

There is a hidden agenda here by such distributors..namely they know that more and more companies are selling direct..or straight to the dealer..(*cutting out an extra markup by the distributor that invariably puts an extra 25%-40% on a products price..)

They KNOW the writing is on the wall for them..so they aim to create their own dealerships at the expense of the true dealers who will HAVE to comply and become installers for these "distributors"...

Of course..some dealers are just plain lazy and of course its easy to let someone else "gain the food..and you beg for scraps"

IF this is allowed to continue..let me forecast what will happen...

1. An army of mediocre dealers that can`t think for themselves ALL selling the same things-not the best but the items that gain most margin for the distributor and price competing against each other...

2. Little choice for the customer and the reduction of specialist and experienced dealers.

3.The "elimination" of any dealer that doesnt do precisely what they are told by the distributor.

4.Favouritism to specific dealers adept at "brown nosing"-not necessarily the best..

I would urge ANY dealer to absolutely have NOTHING to do with ANY distributor that operates like this..we don`t need disitributors with a "god complex" reducing dealers to installers only..

We DONT need distributors that "force" you to purchase exhorbitantly priced training BEFORE you are deemed worthy to sell the product....

NO dealer IF he has confidence in his own ability/experience needs an "Experience Center" run by someone else..go open your own specialist showrooms..and show what YOU are capable of...lest TRUE specialisation dies...

At Projectiondreams we know that the best products are seldom the best known..brand awareness can be built on anything-however capable...and fellow dealers..you will agree with me when I say this...a lot of the "known" brands are pretty poor in comparison to other more specialist and lesser known products....

For me...as an enthusiast first and foremost-the greatest fun of having my own specialist showrooms is in finding a great product that NOBODY knows about..that offers awesome value and betters the "masses" offerings...

What I do know is that ANY dealer worth his salt will 100%  agree with me and know exactly what I am talking about..

Of course we have supermarkets now as well...dying are the specialist butchers,greengrocers and bakers-to name a few...but can any of us ..hand on heart, say the food is better now?..

This is what these distributors seek to achieve..supermarkets for A.V....the same..everywhere...

We must not let this happen..we must fight with every fibre of our being to prevent this and preserve quality,uniquety and specialisation...

Now,how could this distributor model have worked?

Very simple..open "experience centers" ONLY for the dealers..make the investment FOR the dealers..let the dealers make the choice IF that distributor is one he wants to use..check that distributors "Experience Center" against another distributors "Experience Center"....mix and match using YOUR skill...

EVERY distributor must add value to the mix to justify his slice of the cake..hold stock..support the dealers..etc...offer FREE training..(*and yes..many distributors used to do this once..)...

Frankly,I think distributors know they are "dead ducks" in this current market...they know dealers can buy direct from many companies and offer tremendous value for money to the customer..their bid for survival is to make themselves the dealers...How do you win the game?..own both the teams..this is what such distributors seek to do..OWN all the dealers..turn them into their installers..then what happens?....what do you think guys?....YOUR margins will diminish and who do you complain to>?..

To ALL dealers that are currently working with distributors that work in the above way..you are being led..like lambs..to the slaughter...

I have a policy at Projectiondreams and that is I will not buy from ANY distributor that doesnt offer value or who adds ridiculous markups to the manufacturer price...

There are thousands of mechanisms to buy..direct..from the U.S...from numerous distributors..I currently use about 6...on top of the numerous direct mechanisms and self manufacturing mechanisms I have...its this variety that ensures Projectiondreams stays unique  with their product mix..and cost effective with our prices...

I will only sell that which I believe in..which I have validated and through experience ..learnt first hand about...I won`t take a distributors word..because that is always going to be biased to the products they advocate..I shall make my own mind up..

Of course thats what ALL the great dealers do..they go to trade shows..they read reviews..talk in forums..spend hundreds of hours on R & D...and they teach themselves..through experience....

//And chaps?....IF you have to go and pay a grand to go to some dubious and greedy distributors "training"..you are either cr*p and shouldn`t be in the game..or that product is too bl**dy complicated to be selling to customers..:-)

Audio Video isn`t..and shouldn`t be complicated..it should be easy..IF we put in a System ..that your granny couldn`t figure out in 2 minutes..then we have failed..

The complicated part of Audio Video should be in the ingenuity,the behind the scenes,the uniquety..the product mix..the calibration..ALL should be transparent to the customer....

At Projectiondreams we value our autonomy..our experience..WE are the "Experience Center"..our showrooms show our customers what is possible..they deal with us..they get OUR solutions..nobody elses..:-)

The dealers should be capable enough to lead the distributors and the distributors support the dealers..not the other way round..

I see people sitting on CEDIA type boards that have a vested interest in "promoting" the dealers that patronise their "Experience Centers"...some may say "the fix is in"..

In fact until recently,the criteria for submitting a cinema install to CEDIA for example, was it had to have a 16.9 screen...when 2.35.1 screens were accepted as the most cinematic type screen for an install-and had been for some years.....daft eh?

Even dafter was the main criteria for Cedia acceptance..apart from paying them money for the privilidge..was you had to have done 3 cinemas...didnt have to be anything special to qualify just follow the daft "rules"....

Can you imagine saying to Michealangelo that he cant get into the painting school because he had only painted the Cistene Chapel and not used the paint brush specified...but admitting the bloke that had painted the outside walls of 3 houses plain white...:-)...??????

Yes,,I know its ridiculous.. its a ridiculous "members club" scenario in Europe it seems..for paying mates to self award each other...kind of like the masons for Audio Video..and thats a damn shame because when CEDIA for example started in the U.S. it was a breath of fresh air in an emerging industry..

But in Europe?..well suffice it to say..not quite the same..:-)....

I believe in the attainment of something special..not the praise of the mediocre just because you pay a members fee...and of course..cutting edge will always be in front of an outdated criteria...

Ultimately,I guess its all about loving that which you do enough to push way beyond "agreed" boundaries that are set by the less capable...

At Projectiondreams we follow OUR criteria..our knowledge..our experience...we dont need distributors or "private members clubs" to coerce us into presenting products or indeed creating Cinemas -that are lacking and not cutting edge.

We establish our own benchmarks constantly..and they will be way beyond outdated criterias established by in some cases..distributors that would have trouble building something out of LEGGO..let alone a Cinema..:-)

Dealers UNITE and rid our industry of these stuff shirted,god complexed and greedy mediocrities...

Best Regards,








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