Leading Your Channel Through Deflation

Topics:
Direct and Indirect Sales Channels
Tags:
Currency & Foreign Exchange,
Deflation,
Finance,
Manufacturer,
Manufacturing,
Pembroke Consulting Inc.
Source:
Pembroke Consulting

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Overview: Many manufacturers do not yet appreciate how deflation — a decline in product prices — could wreak havoc with traditional channel management practices and lead to a loss of market position. Declining prices wreak havoc with the income statement of distribution intermediaries, who are “paid’ for providing services to customers and suppliers in a channel or supply chain in the form of gross profit. However, manufacturers can build loyalty, gain market share and secure a stable route-to-market with the following innovative strategies supporting the changing economics of channel. These strategies are boosting distributor productivity, coordinating distributor compensation, and fostering fee-for-service. Thus, manufacturers can also share in the financial rewards through licensing fees and other compensation from new distributor service programs.

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Format: PDF | Size: 453KB | Date: Oct 2003 | Pages: 2

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