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 Distributor Dialogue All-Glass Aquarium Company Maximizes the Power of D By Steve King Executive Vice President, Pet Industry Distributors Association
Last issue, I wrote about PIDA’s Power of D campaign. In short, the Power of D is the power that distributors bring to manufacturers to get their products through the distribution channel and into the hands of consumers. PIDA’s campaign offers manufacturers insight into how to maximize that power for their companies. Today, we’re going to look at a specific company that has maximized the Power of D. All-Glass Aquarium Company, Inc. has long been rated by distributors as a quality vendor. When we dug into the details behind that rating, we found superior communication, an interest in independent pet retailers, a solid marketing program and a sincere interest in distributor issues at the core of All-Glass’ operating procedures. Communication One of the qualities that makes All-Glass a distributor favorite is the open lines of communication it keeps with its customers. For example, when changes in the salt water hobby rendered the 10-year-old Twin Flo Corner Overflow aquarium ineffective, distributors were able to tell the company how their customers felt the product could be better. “We got feedback from distributors and dealers telling us how they felt the product could be improved,” says All-Glass Marketing Manager Matt Allen. “That feedback enabled us to modify the product line and reintroduce it. Our MegaFlow™ line has been very successful, largely because of this feedback.” Allen explained that All-Glass regularly uses distributors as a source to better their product lines and get feedback as to how their products are doing in the field. “The ability to talk to the president or vice president of sales and explain our problems is very important,” adds Bob Merar, president of General Pet Supply, an All-Glass distributor for about 15 years. “They are very distributor friendly. When we go to them with ideas, they are responsive and often come back with a win-win solution.” The All-Glass management team is available to distributors five days a week and is also accessible by Internet and cell phone. “We want input from distributors so we can make our products and their businesses more successful,” says Allen. Keeping Independent Dealers Competitive Another factor in All-Glass’ distributor appeal is the company’s commitment to helping independent pet retailers compete with mass merchants. From product lines to pricing, All-Glass works with distributors to level the playing field. During the holidays last year, for example, All-Glass introduced a new line of aquarium kits with the help of its distributors. The kits were geared toward independent pet dealers and included offerings similar to what mass merchants sell. “We had a combination of all the skus in the product line, put together on a palette with some free goods from All-Glass and also from Tetra,” Allen says. “The collaborative effort made for a comprehensive and economical alternative for the retailers.” The value-added package also carried an introductory discount. “When we have new products, we try to expedite the saturation in the marketplace by offering the distributor additional funds to discount the products,” Allen says. All-Glass’ diverse product line also helps independent retailers compete with mass merchants. “Typically, mass merchants don’t look at regional influences,” Allen explains. “Smaller retailers can customize their offerings to their customers’ needs. For example, if oak doesn’t sell in their area, they can carry something else. The local Wal-Mart may not have that option.” A Comprehensive Marketing Plan A manufacturer’s marketing program is crucial for distributors. There was a time when distributors could pioneer new products but, with 12,000 skus and excessive product duplication, those days are gone. Even the best distributor sales representatives don’t have time to put every new product in front of their customers. Focused brand representation and support from the manufacturer is a healthy, necessary component of the distributor’s sales effort. “All-Glass does a substantial amount of advertising in the trade publications so most any aquatics retailer knows the All-Glass name,” Merar says. “That makes for a much easier sale.” All-Glass also maintains a comprehensive web site with descriptions of its products and sends mailings to retailers that call attention to new items and trends. Distributor Support Merar rattles off a laundry list of other ways that All-Glass contributes to the successful relationship that distributors have with the manufacturer. In addition to value-added products and extensive marketing, Merar says All-Glass does an excellent job of working with his sales staff, working with his buyers and maintaining high fill rates. All-Glass sales personnel ride along with their distributors’ sales representatives to visit retailers. “We’ll do training and sales seminars for our distributors if their sales people meet in a certain place,” Allen says. “We create PowerPoint presentations and use physical demonstrations to explain our products to their people. We do whatever it takes to make sure they are comfortable with our products.” Merar describes All-Glass’ fill rate as phenomenal, about 99 percent. There are four people in the All-Glass front office who take orders, figure out the logistics of trucking and make sure All-Glass distributors get what they need. Merar adds that another reason All-Glass is a distributor favorite is its approach to the market. “They aggressively look at what the competition is doing,” he says. “Then All-Glass makes it as simple as possible for the consumer to get into the aquarium business with all of the necessary equipment at a reasonable cost.” A Win-Win Scenario All-Glass Aquarium Company’s relationship with its distributors is a prime example of the Power of D in action. All-Glass is sensitive and responsive to its distributors’ needs. In turn, the distributors deliver sales that make All-Glass a brand leader. PIDA is looking for other examples of successful distributor-manufacturer relationships. If you would like to be the focus of a future case study, please contact me at steve@ksgroup.org Learn more about the Power of D at http://www.pida.org Steve King has been executive vice president of PIDA since 1989, and has been involved in the pet industry for over 20 years. |
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