So basically what we have is a cash flow problem. When it’s time to sell, and a farmer is low on cash flow, it won’t be that easy for farmers to start dictating price. Farmers don’t really have access to grants or long term loans they basically have to incur all the cost associated with production personally. The end of the matter is that we must ensure good practice so that everyone goes home happy.Ĭontrolling prices at the farm gate is not so easy as it seems. I know agriculture is the next big thing in Nigeria and we are the people to make that happen. Let’s not expect middlemen to just fold their arms and not fight back when we effect changes but we must be firm in our resolve to see any meaningful change. We can no longer do business as usual and expect things to be different. We have people of diverse professions here. We have the number to start the change we hope to see. Our produce should be inspected and then the middlemen will buy at a price agreed by the association which should have a fair representation of both sides of the divide. We will need to belong to some associations where we will register for a token. We can actually have something like a task force so to speak. However, we will need to have structures in place to determine fair prices for produces, control the market and penalize offenders and to act as checks and balances to the excesses of the middlemen. Your customers' loyalty is the leverage you need to drive better terms-including a non-exclusive relationship-with your suppliers.We will not be able to completely eliminate the roles of middlemen. By diversifying your product offerings, you start to become the "go to" person for your customers in a certain product category, and your suppliers will have to start competing for your attention. If you sell one product line, most acquirers will be turned off, realizing that you can be put out of business overnight if your supplier decides to hire its own sales force, go direct or sign other distributors. Once you truly own the customer, you need to start selling other products. Your customers' loyalty to you, not to the manufacturer, gives you leverage to execute step 2 below.
#Middleman business software#
Therefore, the distributor needs to add a comprehensive pre- and post-sale service experience and invest in customer relationship management (CRM) software to keep track of buyers' information. The most important thing distributors can do is to ensure the customer wants to buy from them, not the manufacturer. So What's a Middleman to Do? My advice to Rupert-and to you if you find yourself in a similar spot-involves two steps: 1. The ones who died were glorified salespeople for a single product line. The ones who survived had deep and loyal relationships they'd earned by providing technical support to their customers on a wide range of gear. Value-added resellers (VARs)-the jargon label computer companies give their distributors-started to suffer. IBM and HP started to lose market share, and they too started to sell some products directly to customers. In 1984, Michael Dell shook up the cozy world of computer distribution by selling computers directly to customers. Manufacturers are constantly evaluating the pros and cons of eliminating their sales channel and selling directly to their customers.
In the case of Rupert's business, the Germans could decide to build a North American sales force, and unless his distribution agreement had protection (it doesn't), his business would be erased or compromised overnight. The reasons a simple one-product distribution company is of little value in the eyes of an acquirer may also provide warning signs for your business: 1. The problem was, even though his business was profitable, Rupert distributes a single product to a group of customers who think of the Germans as their supplier and Rupert as a middleman.
Recently someone with the North American distribution rights for a German pump company-let's call him Rupert-sought my opinion on the value of his business. Today, being a distributor is a tough way to make a living and a difficult business to sell. Before the Internet and overnight shipping made the world smaller and flatter, having a physical territory in which to distribute a product was valuable. Being a middleman is not what it used to be.
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