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22/05/2014

How annoying!

Do you know what is really annoying: when job applicants only realize on the way to the appointment just how far away the company is from home....

Do you know what is really annoying: when job applicants only realize on the way to the appointment just how far away the company is from home. Can't you look that up ahead of time? Do we all need to sit here and wait in front of a pot of coffee and a plate of cookies, only to receive a phone call with the message: "I am turning back. It's more than 10 minutes from home."

And, of course, the call came in 20 minutes after the scheduled appointment time.

Well, at least the cookies were good. :)

15/04/2014

Zebra buys Motorola

Today we are preoccupied with the news that Zebra bought Motorola (for 3.5 billion USD, according to Reuters)....

Today we are preoccupied with the news that Zebra bought Motorola (for 3.5 billion USD, according to Reuters). Very interesting, but with a little thought, it was forseeable. After all, Zebra had to do something to keep up with Honeywell (who just acquired a new printer line with Intermec). We are asking ourselves the question, of course, how this will affect the distribution market in Europe. There will be some concentration risk, on both the vendor and the distributor side. However, the situation remains exciting!

03/04/2014

Jarltech iPhone app for field technicians

Our iPhone app for support technicians is now availble in the app store....

Our iPhone app for support technicians is now availble in the app store. If a service engineer encounters a defective product in the field, he just scans the barcode and receives the warranty status in return. The app will also show any service contracts connected to that unit, as well as the country-specific return-to address. The Android version is ready as well, and will be available for downloading early next week. Our known "web app", which has been available for many years, delivers all other Jarltech contents (including this blog) to your mobile device. In the near future, we will combine the functionality of our different apps into one.

06/02/2014

Vendors instigate unnecessary price war

Just about every day now, we are working on "negotiations" regarding the turnover targets for the calendar year....

Just about every day now, we are working on "negotiations" regarding the turnover targets for the calendar year. These are always resolved by all the vendors only after one fifth of the year has already passed. The word "negotiation" is in quotation marks because in most cases, a stipulation exists, to which we then are allowed to say "yes" to. The popular excuse: "the stipulation comes from USA / Japan / from wherever" and "Management also gets its bonus only when a growth of XX is reached".

This is not a nice excuse, because the underlying translation is: "I did not have the guts to stand up to my supervisor, therefore I will just apply the pressure I am receiving onto the Supply Chain further and hope you shut up."

It is true that we achieved or surpassed our goals last year with all the major vendors, and that's a nice thing, because the result is that we get goal achievement bonuses. Since last year went very well, I have the impression that some vendors this year are simply "going bonkers". If a market leader is of the opinion that 14 % or even 20 % growth is needed to justify a bonus for the distributors, then something is wrong.

The market environment may be good for Jarltech, but one or the other distributor must definitely live with a loss in revenue. Thus, the under-performers should first get higher goals and finally work hard, instead of repeatedly punishing the over-performers for their good performance from the previous year.

If the bonuses (which are so important for the profits) depend on unrealistic growth, this will ultimately lead up to the fact that all distributors will retaliate with ridiculous prices. One of our vendors even acquired a new wholesaler, but nevertheless thinks that all others could grow by 10%.

My dear vendors - to whom this applies - think again: if a target is unrealistic, you will either not even try to achieve this goal, but instead focus on other products - and you lose sales. Or else, you are fighting with hook or by crook (which means price cuts), and therefore the profit margin collapses. Besides, once the prices are bled dry, then our Sales team will push the products of your competitors by next year, at the latest. A price war does not help any of us...

17/12/2013

Christmas Style

The least stylish things around Christmas time are e-mailings with "Season’s Greetings". Please: Do not do it. It is so OUT....

The least stylish things around Christmas time are e-mailings with "Season’s Greetings". Please: Do not do it. It is so OUT. Send a card, or a gift, but those e-mails are nothing but: spam. And embarrasing as well.

10/12/2013

This is what happens without distribution: customers get lost in the shuffle

When it comes to distribution a really poor sector for me is the business with high-quality furniture....

When it comes to distribution a really poor sector for me is the business with high-quality furniture. There are great furniture stores everywhere, but anything beyond Ikea or Segmüller only comes with endless delivery times. Why is this? Is it because the pieces on display only belong to the manufacturer anyway? The product portfolio is not very large, so a distributor in the back wings could handle it, right? It is just a matter of a drop shipment directly from the distributor to the end customer a few days later and everyone is happy.

Recently we had two chairs delivered at home - I almost refused the delivery because I completely forgot that we had ordered them a few months before. How is it that a move on short notice is possible, but your couch from Italy takes 16 weeks to arrive?

In my opinion there is a need for action here, because manufacturers lose business if they cannot deliver furniture. I have often purchased other items, simply because the product I wanted to have was not available. I have also ordered tailor-made furniture from China, because it was finished in ten days, then took only four weeks to be shipped; no furniture store in Frankfurt could match that. Our tables at home are all from one carpenter - not just because they should be different than the standard, but because we did not feel like going through furniture stores only to have to delay the changes to the living room by three months.

If any of you need an investment idea: this is a good place to start!

24/10/2013

Just ask Mr. Neumann!

One can often fend off a telemarketer with a friendly "thank you", since most callers are very nice people....

One can often fend off a telemarketer with a friendly "thank you", since most callers are very nice people. I do turn evil though if someone tries to get to me with lies like "I was in the army with Mr. Spranger." (where I had never been) or "at school" (where I rarely was) or something similar.

However, there are also companies where you never get off of the list. Every week someone calls, asking "Who is in charge of your ... ".

For cases like these, we now have Mr. Neumann! Because instead of simply hanging up and still repeatedly receiving the same calls, I prefer to answer: " ... For this only Mr. Neumann is responsible. However, since Mr. Neumann is deaf, unfortunately you can only really reach him by e-mail at dirk.neumann@jarltech.de. There is no other way."

Sometimes there are newsletters that you cannot easily unsubscribe to, because you have to show interest in a specific provider. But a quick note by email, asking to please address all future messages to Mr. Neumann is polite, and the problem is immediately solved.

And lo and behold ... it works. The number of calls is less, and I do not see whether or not Mr. Neumann receives e-mails, because I have chosen a 16-digit password for him, without looking at the keyboard.

We find it funny that now also mail for Mr. Neumann comes to our office. Catalogues, giveaways and even invitations. Even this mail is not annoying, because it can be put straight into the trash can. Since Mr. Neumann is now already included in a number of marketing lists, where you can obviously not make any mention of him being deaf, several companies still call here asking for him. For example, they want to try the latest investment tricks directly from London. Of course, each caller would say that he is naturally not making an "unsolicited" call, because he has been in a business relationship with Mr. Neumann for a long time.

This just came to mind: I kindly ask our marketing department to print business cards with Mr. Neumann's contact information, which I can then use at trade shows.

It's lunch time, so I will call Mr. Neumann into the conference room, so that at least I can eat meeting biscuits in peace and quiet. And if you want to write something from the soul, simply write to dirk.neumann@jarltech.de. He is a good listener and I promise you he will not annoy you!

11/10/2013

Promo mania as a last resort

In the last quarter, Jarltech has again met or exceeded all targets set by the vendors, and we are pleased to continue experiencing steady, double-digit growth.

...

In the last quarter, Jarltech has again met or exceeded all targets set by the vendors, and we are pleased to continue experiencing steady, double-digit growth.

What's funny is that some of our competitors who are losing revenue say over and over again during their analysis conferences: "Although we are losing revenue, we are gaining market share." Sorry, that is a bold-faced lie. But I do not have to buy your shares.

You can see where one or the other vendor on the market is losing points in the fact that some vendors again dig deep into the "promo" box in order to stimulate sales.

Leading the pack in this hustle and bustle is a large vendor of ours, who actually hurled eight "promos" with one stroke on 1 October. Plus, some of our employees are to be paid directly for the sales (which we cannot stand, because we want to decide for ourselves what products we promote). When a vendor employee wins a prize at our Networking Dinner there is immediate compliance-terror - but suddenly the companies can pay cash directly to our employees.

Or there are massive "retrospective rebates" on products which are still not selling better. Our dealers do not now go and buy 100 extra scanners if there is not a job order.

And if I lower a scanner price by 30%, then I have to massively sell more to reach a similar turnover. Of course, we distributors also preach that quarterly targets need to be reduced accordingly. Since all vendors should sell 30% more, it is quite logical that the price also is in the basement. It has taken just three days for the promos to be sent via data feed into all retail web shops - and thus the product is not interesting for a software house, since there is nothing more to earn.

Apparently, one or the other manager wants to reach for quarterly target by any means necessary - but maybe you should re-negotiate the goals realistically with your employer, rather than to give away a massive margin and to annoy the channel.

If one looks for the cause: every one of this vendor's employees which one talks to finds this promo mania completely useless and cumbersome, and nobody wants it to be "it" again. Maybe it was just a hacker from the competition, and it's all been just a stupid joke in the end.

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