When venturing into welder equipment distribution, many people focus on the cost, not on the value that each aspect of their new business can bring. Is focusing on the startup costs alone a good move or not? Will this benefit you, the new welding equipment distributor? Read on and find out.
Welder Equipment Distribution: Why You Should Focus on Value, Not Cost
Investing in Quality Inventory
Quality welding machines are not cheap. They come with hefty price tags. But here’s the thing – not cutting on inventory cost is actually a good distribution investment. It’s because quality welding equipment is more efficient and durable, allowing your customers to use it longer, with little maintenance. And if they need maintenance, you can offer a warranty for free parts and services (as long as they are covered by the warranty).
Investing in Premium Brands
Here’s the best value in investing in premium welding brands – they can decrease your customer complaints and return rates. Ordinary welding equipment may be cheaper, but most of the time, it’ll malfunction sooner and require more service calls from your technicians. Not to mention that cheaper products typically contain substandard components that can compromise welding quality and workplace safety.
Premium welding machines, especially those from established manufacturers, go through a rigorous quality control process, first by the manufacturer, then by government safety organizations. To eliminate the chances of liability issues, manufacturers of premium welding equipment ensure they only use quality components that are classified as safe by the Occupational Safety and Health Administration (OSHA) or similar organizations.
Marketing Investment
What’s so important about marketing that you need to include it in your distribution investment plan? You get to reach, attract, and engage with your target audience faster and more effectively. This can lead to improved customer satisfaction and ultimately, more profits for you.
Let’s say you have a new welding machine model. Because you are so confident of the performance it can provide, you naturally want more customers to try it. But how will customers know about it if you don’t market it? Having product catalogs and other promotional materials printed and distributed or putting up accounts on various social media platforms might cost some money, but they can definitely get your name out there. So, make sure you include a separate budget for marketing when you plan your start-up costs.
Training Investment
What’s the value in this? Attracting, hiring, and retaining the right sales and technical people can be quite challenging in the welding equipment industry. According to industry experts, this is because the specialized knowledge required has traditionally made staffing difficult.
Having a good training program in place can ensure you develop and retain the right people for the job. These are the sales representatives and technicians who are knowledgeable, help you achieve your business goals, mission, and vision, will not allow themselves to be pirated by your competitors, and value the relationship you have built over time.
A good training program might require additional investment, but with the advantages it offers, that cost becomes irrelevant.
Investing in the Right Distribution Manager
Some welding equipment startups try to run the business themselves. Here’s the reason why: since they believe that distribution is just moving products from point A to point B anyway, why spend extra for a manager? All they have to do is sell equipment, so what’s the big deal?
This line of thinking has led many distribution startups to close shop after a couple of years. Why? It’s because a distribution business is just like any other business. It needs to be managed effectively for it to thrive and profit.
When you hire a good distribution manager, you can be sure your business will run smoothly. Systems will be created, processes will be refined, employees will have someone to hear them out and guide them properly, customers will have a knowledgeable person listen and resolve their complaints, making them happy and satisfied enough to spread the good word about your welding equipment business.
Should you scrimp on hiring an effective manager who can provide you with a smooth-running business that will rake in more profits later on? It’s a distribution investment you should consider.
In Conclusion
As you can see, focusing on the value of a good welding equipment distribution investment can provide you with multiple benefits. It can ensure the quality of your inventory, help you reach more of your target audience, retain the right employees, satisfy customers, and ultimately increase your distribution bottom line.
So when you start creating your distribution business plan, consider the above-mentioned investments. Allot a specific budget for them when you compute the cost to build a welding equipment distribution business.
Now, if you’re not too keen on starting your own distribution business from scratch, why not check out the Perfect Power welding equipment franchise opportunity? We offer information on the initial franchise cost and help with securing financing.
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