OK, a cup of coffee and I am ready to take the intellectual leap to decipher exactly what BSF- Solar Gard is up to in signing up some of my old friends as their distributors?

Obviously they believe that their Factory Direct Centers were not growing their market share.

The cost of operating these Centers was not producing their desired results.

They hope that an independent distribution company will be more proactive than direct employees (No Kidding!!)

Distribution takes the credit issues of slow paying dealers out of the picture. Also inventory and cash flow are improved with one financially solvent source versus the cost of doing business with hundreds of small players!

The margin gain by selling direct opened up issues that the manufacturer recognizes were outside their area of expertise.

They hope to grab what ever is left of the FTI market share.

That's the best case scenario.

Now what are the "unintended consequences"?

1. There will be a "disturbance in the Force!" Solar Gard dealers will not universally be happy with the change.
2. Several of these veterans (another way of saying "old"?) have a questionable history with competitive dealers now suddenly thrust into the position as their distributor.
3. Channel conflicts in various marketing areas are now open for change.
4. The Business Model at 3M (sells direct in several larger regions) and CP Films (similar model of independent distributors and Factory Direct) is open for review. Certainly a "watch and wait" attitude will prevail.
5. Distribution isn't easy and it is a rarity when a distributor can be successful. Many manufacturer's believe it is a simple process to handle dealer issues. It isn't! My personal observation is that several distributors that were successful and were jettisoned just may have been the turning point for a manufacturer's steady decline.

I love change. .and this one excites me!!

Best of luck to the Meese's and Uncle Ray!!