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What are the benefits of being an authorized distributor? Is there any security nowadays or any true fidelity between channel partners. I guess we should take a look at the auto industry for a picture of what might come or has already began. Lets take a look, it started with Dentsply Cutting Down Distributors, 3M forcing their distributors that don't meet their yearly sales minimum to buy from middle man (ADC) and the organizement of our biggest competitor (DANAHER aka Wal-Mart). What happens when the rug gets pulled out right under your feet like all of these hard working Auto Dealers that where the real hustlers that stuck their neck out for decades for the company that now is saying to them thanks for your donations, you may close your business now, is there really a benefit.

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One of the biggest benefits to being an authorized dealer is the manufacturer's rebate. These rebates can be substantial.

Two other benefits, the ability to return product and customer service. Of course that depends on the manufacturer. Some don't offer much customer service:)
There seems to be very little loyalty these days. This goes for the doctor/dealer relationship, as well as the dealer/manufacturer relationship. In the "old days", a dealer rep that took good care of his/her clients could expect a customer for life. Nowadays, it seems to be all about the discount. If the guy down the street is a nickel cheaper, goodbye long-time rep! This is why the direct companies seem to be booming.

In this crummy economy, the doctors are looking for a good quality product at a lower price. This seems to be a growing trend. Perhaps this will change when the economy picks up, but right now, it seems to be the way of the world.
Mike is right about doctors looking to curb their expenses. Their profit margins are being trimmed every which way. And when manufacturers increase prices, it's not helping the situation. This is when doctors look for alternative brands, even generic products too. They depend on their dealers for this information. In times as such with the way the economy, I just can't understand why the "big" name manufacturers would cut down their dealerships and on top of that discourage them from wholesaling to non authorized dealers. Isn't the idea to sell products to the doctors? Should it matter whether it's through their authorized dealers or not? To even help curb the grey market goods, even a bit, would help. Where is the logic on their part?...From what I have heard, these big manufacturers are feeling the pinch and are rethinking their strategy. Those dealers who lost those lines after supporting these manufacturers, have been able to get doctors to switch to alternative products... Did these manufacturers think that doctors would remain loyal to their brand??...Come on, let's get real. Manufacturers don't deal with doctors the way dealers do. We have an established business relationship with them. They help us put food on our table and we help them save where they can.

As an independent dealer, I am thankful to my doctors and manufacturers who support us to win a market share from these "big" manufacturers. I do hope that the economy changes for the better and if there are any manufacturer reps or excecutives reading this, perhaps you may want to reconsider your position on allowing non authorized dealers to sell your products. Good luck to everyone...

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Created by Dental Sales Rep May 14, 2008 at 7:30pm. Last updated by Dental Sales Rep Dec 9, 2010.

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