Yesterday, an American competitor of ours announced on the stock exchange that it would like to discontinue the distribution of »non-digital products«, i.e. hardware, in some geographical areas. Among those areas affected is Europe. The business should be sold. But it is not said to whom, or if there are already negotiations, or when that could be. They want to free up the working capital used in this business into a business with higher margin opportunities.
Since the announcement yesterday, my phone has been constantly ringing. Everyone wants to know what I think about it. Did we win a war? No, we were never at war.
First of all, this competitor and his staff are highly esteemed by me. We occasionally see each other at events and there is no hostility.
Second, of course, selling or discontinuing the hardware distribution in Europe would generate a lot of movement. The message to the employees and the customers is quite clear: your area is not exactly the pearl of the company; our capital is misused there. This area is now the unfavoured child.
Third, is that good for Jarltech? Probably. For long-term things, one or the other dealer might see that now could be the right time for a change of his distribution partner.
Fourth, is that good for the resellers? Sure, it's always good for a reseller to shop at Jarltech :) However, there are still enough distributors on the market who do a good job. The selection is hardly limited.
Fifth, what are the vendors doing? Probably nothing. There are on-going contracts and one will first have to wait and see. Some vendors who like to pump goods into the channel at the end of each quarter, might have less choice. But if the other distributors make more sales as a result, they can also store more. We have sufficient resources in every respect to absorb additional business.
Good news for the vendors: heres one less that can make demands to push for certain benefits in Europe based on their success in the US. After all, most vendors are headquartered in the US.
All in all, the competitor repositions itself and at some day will be no longer our competitor. I do not think that this part of the company will simply disappear. There will be a new owner, the winds of change will blow, and we will see what happens.
Why is this message coming precisely at this time? Above all, why are nearly 500 employees now unsure about their future, without anything being specific? By telling that this part of their business is not really delivering what they expect, will this not have a negative effect on the price when selling this business?
That, I think, is a typical action of an American company which is listed on the stock exchange. At the same time yesterday, the quarterly and annual results were announced. The last quarter was, according to their own statement, »below expectations«. Since analysts can not help but notice that others are evidently growing in the same business and delivering good results, it was probably important to show some kind of activity now. The outlook of freeing up working capital and an overall lower turnover, but higher profits, should certainly drive the stock price, or at least prevent a downward spiral due to the weaker quarter. It could have worked, too: so far, the price has fallen, but only very slightly.
Complaining – the national pastime of the Germans
Let’s be honest, we Germans love to complain – about the weather, football, the economy, politics, etc....
Let’s be honest, we Germans love to complain – about the weather, football, the economy, politics, etc. This unites us all – regardless of our social class or political affiliation. Complaining is a national pastime in Germany. We love to grumble about high prices, the shortage of skilled workers and the weakening economy, while at the same time discussing our next holiday or the four-day week. Please don’t get me wrong, I am all for everyone taking a lot of time off and having a good rest – the only thing that bothers me is the fact that we love to see everything in such a gloomy light! We have to start working together to find solutions, because what we forget amidst all the moaning are our own abilities.
No, Germany is not falling apart! Germany still has a lot of untapped potential. We have people with great ideas, curious and inquisitive people (yes, even among Gen Z), a high average level of education, a high degree of legal certainty, a consistently strong industry, very good research ... and yes, we also have the capital. But we have to stop complaining and focus on our strengths. We are capable of innovation, we can be or remain market leaders in many areas, but, at the same time, we have to be open-minded. Even if one area collapses, we can successfully develop and expand a subsequent one. These are our strengths. However, we have to accept the challenge – be it in society, in politics or in the economy. Burying our heads in the sand won’t help us.
We are once again facing enormous opportunities for our future – whether in medical research, industry, the energy sector or, of course, across the board in the field of AI. And that’s just what comes to mind. There is, of course, much more. Let’s work together to develop new ideas that will advance us not only as a society, but also as a business location. There is potential out there, it just needs to be tapped! And by the way, we’ll have less reason to complain!
The road to success: do we really have to get worse at everything?
Last week I had a conversation with a customer that left me speechless....
Last week I had a conversation with a customer that left me speechless. Our sales department asked me to speak to a customer on the phone who doesn’t buy from us because we supposedly supply end customers.
No problem, I thought. I called and explained that this is exactly what we don’t do, and that this is a key promise to our dealers. There are extremely rare exceptions – only if a vendor forces us to or a retailer explicitly asks us to. But that almost never happens.
Then it turned out that there was a misunderstanding: the customer said that we also supply small retailers. My answer: »Yes, we do and we have to, based on our contracts with the vendors. Our competitors do that too.«
»All correct«, I hear, but then it got exciting: »Your large competitors are not interested in small customers, so they are poorly served. At Jarltech, small dealers feel comfortable because you provide great service.«
I didn't know whether to laugh or cry ... A customer doesn’t buy from us because our service is too good? I hadn’t expected that.
But don’t worry, contrary to the headline: We will continue to endeavour to offer every customer the best service we can!
Why is good service so important again?
I'm writing to you today from China. Here I have learnt once again why good service is so important....
I'm writing to you today from China. Here I have learnt once again why good service is so important. If you want a customer to pay more than elsewhere, then you have to make the difference! You have to know what they like and anticipate their wishes.
Here in Shenzhen is the Grand Hyatt Hotel – I was here at least six times a year before Corona – and even stored some luggage in Shenzhen, so that I only had to fly with hand luggage. Liquids and such ... that was difficult on the plane.
It’s been over three years since I was last here, and I arrived to be greeted by an armada of hotel staff. My beloved Coke Zero was waiting for me in the car outside the airport. My luggage, which I hadn’t expected to see again, had been stored for three years and completely cleaned for my new stay. Everything was hanging in the wardrobe and the bathroom was neat and tidy. My razor was charged and my chargers stood on the desk. Of course, the fridge was full of Coke Zero and the white wine I had last drunk three years ago. Even the room service knew what I liked to eat.
That’s what hospitality really is. And we have to do the same at Jarltech. Always write down what our customers want and like. And when I go out to dine with a customer, I need to know whether they are vegan or if they don’t like pork, for example. Some customers want to be called and courted on a weekly basis, whereas others find this rather annoying. Some still prefer paper catalogues, others believe it’s environmental pollution. And all the better if a customer returns after three years, and I still have it all written down somewhere. Jarltech may not be a hotel, but we are a service provider that has to differentiate itself The difference is always in the details.
The world's smallest chef gives a guest performance in Usingen
It's finally back on: Our 3D projection dinner show »Le Petit Chef« will be back in our restaurant »Uwe and Uli« (www.uwe-uli.de) from the 11th of October...
It's finally back on: Our 3D projection dinner show »Le Petit Chef« will be back in our restaurant »Uwe and Uli« (www.uwe-uli.de) from the 11th of October 2023 to the 30th of April 2024. Personally, I always have fun enjoying delicious food with a bit of a show. Come by sometime – it's also great for Christmas parties with up to 20 people. And if you're a customer of ours, why not have your sales contact invite you next time you visit Jarltech? 😊
Have fun with the little chef!