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Territories Post New Topic | Post Reply
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SprayFoamSupply.com
Posted: Mar 04, 2007 10:41 AM
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Territories
I was wondering what kind of territories, if any, you guys are getting from your suppliers. I have this question come up often. I currently do not have installers sign contracts with me. I try to give the best support that I can and treat people the way that I want to be treated. I want people to buy foam from me because they want to, not because they have to. I have had some installers want a territory. I can appreciate that, but what if I turn someone else in that area away and then my installer dumps me for another foam, then I lost 2 installers. What are you guys doing?George |
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Posted: Mar 04, 2007 12:07 PM
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Hi George, I'm currently a franchisee in the automotive industry and can only speak from my perspective. In my opinion a protected territory means nothing. As there is no protection from competition. They are coming regardless of a protected territory. Personally I would not sign anything with anyone ever again that has anything to do with a territory unless it benefited me in some way. I'm yet to find the benefit in a "protected" territory. As a supplier you can lock people into contracts and limit the number of people YOU put into each area. But, in my opinion, if you're not prepared to take legal action everytime someone breaks your agreement then you're wasting your time. Just my opinion again but, the people asking for protected territories do not know what they are doing. As I did not know what I was doing when I purchased my protected territory four years ago. My area is swamped with competition and my franchisor could care less. Normally I would say take care of your customers and they'll take care of you. I'm not so sure that's how it is these days though. The price of raw materials always seems to go up faster than labor can give themselves a raise. Margins are not great and that in itself will force the installers to price shop. If you're competitive in your prices and superior in customer service then you have something of value to offer. There is no value in a protected territory though. Just my opinion, Leon |
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Barry Wallett
Posted: Mar 04, 2007 01:55 PM
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Hi George, I sold franchises in my past, I believe if you set up protected area's it would hurt your business. You would be limiting the exposure of your product. In most cases a business will grow to the level of the operators comfort level. ie 1 crew, 2 crews etc.. What would happen when he reaches that level he is done growing. He will not be marking (as much ) he will be maintaining. At that point your product is not being promoted in the market place leaving a void that will be filled by your competitors. I would suggest to you a certain number of miles between distributors, or in the case of a city a different suburb, or phone prefix, thus giving your distributors some space. Last point having multiple representatives in one area will do a better job of getting your brand out into the marketplace which will benefit all of your distributors in that area from the synergy. For what it is worth ... |
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Posted: Mar 05, 2007 11:02 PM
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Hello NH, what do you get for a set of roof foam? I'm in clearwater, fl Erik |
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Posted: Mar 05, 2007 11:04 PM
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Oh, wow. I just visited your site. You are a long ways from me. Do you just supply wall foam? Erik |
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SprayFoamSupply.com
Posted: Mar 05, 2007 11:12 PM
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Hi Erik, I have both wall and roofing foam. Don't let my location worry you, I have customers further away from you. Give me a call. George 603.348.8880 |
