Product and Brand Selection

Written by Diane M. Calabrese | Published August 2024

True or not? Brands matter less and less to buyers.

In a different con- text, our anecdotal assessment is “no way.” As the grocery store tries to push unbranded items from pasta to cans of vegetables, any shopper can see that the no-names get left on the shelf.

What accounts for the shelf sitters? Buyers want quality, which a brand name heralds.

No seller would put the company’s name on a product that reflects poorly on the company. The seller may be a manufacturer, distributor, or supplier.

“When distributors choose products, they should think about a few important things,” says Missy Ordiway, business development manager at Deco Products Inc. in Denver, CO. “One big aspect is quality.”

Why? “The quality of the product ensures longevity to relationships between distributors and their customers,” explains Ordiway. “It’s also very smart to go for products that come with training and support from the manufacturer…because let’s be real; stuff can go wrong, and it’s nice to have the manufacturer backing you up.”

Bundled into the concept of quality is consistency: The product purchased today will be as good as it was when purchased one month ago.

In addition, a distributor must balance his or her own efforts to build customer loyalty with building loyalty to a brand that a customer might buy elsewhere. This is one reason why many distributors choose private labeling as an option for at least some products.

“A distributor should be considering whether they can consistently sell the product and how much margin they can achieve when selling it,” says Joseph Daniel, CEO of ITD Chemical in Tucker, GA. “Also, is the sale of that product building their business or building a branded manufacturer’s business?”

To develop a roster of products, a distributor must rely on trusted and branded manufacturers and do some research.

“Of course, due diligence should be completed on any new product, including sampling or testing,” says Daniel. “Assuming a quality standard is probably not a good idea, but if the product comes from a current supplier or similar products that are good, it’s probably a good assumption that the manufacturer will produce more good products.”

So, do end users give much significance to the brand when they choose a product? “This depends greatly on the product category and the uniqueness of the application,” says Daniel. “For commodity applications where there are similar products on the market, the user will likely value cost and convenience over a brand.”

End user perspective changes, though, when there’s a special application. “For more difficult and unique applications where there are fewer products on the market, the end user may opt for a brand or is more likely to rely on his salesperson to direct him to the right product,” says Daniel.

Unique applications give distributors an opportunity to connect with end users in an enduring way. “This is where a distributor can add a lot of value in recommending the right product, whether branded or private labeled,” explains Daniel.

The internal workings between distributors and manufacturers are a bit different. A distributor buying chemicals, for instance, begins with trusted manufacturers—a chemical will be exactly what the manufacturer says it is.

Therefore, brands are not significant in certain exchanges. “As a chemical manufacturer we primarily focus on cost, availability, and quality,” says Daniel, “and not so much brands.”

Signaling Excellence

Every successful seller wants a brand that signals excellence for the simple reason that superiority is built into the product.

What should a distributor consider when choosing whether to sell a product or not? “Quality, consistency, and customer service,” says Kraig Snyder, national sales and marketing manager at J.E. Adams Industries Ltd. in Cedar Rapids, IA.

So synonymous is customer service with quality and consistency of a product that we sometimes glide right across it. A company that stands behind its products by answering questions, verifying the products are used and maintained correctly, etc. is a company that speaks to quality.

“In our case we don’t release anything unless it possesses the same level or quality as our tried-and-true products,” says Snyder. That’s the essence of ensuring a customer can rely on a brand.

Do end users of products make significant use of brands when selecting products? “I believe an end user gets familiar with a brand and the benefits of that brand and will choose it when given the option,” explains Snyder.

Implicit in the concept of excellence is that a product does what it’s expected to do. And a bit more, such as more than meeting expectations.

“The product must decisively address both the manifest and hidden needs of the customer,” says Bruno Ferrarese, copresident of Idrobase Group, which is headquartered in Borgoricco PD, Italy. “Among the manifest needs, ensuring good value for money and long-term reliability are obviously important.”

But needs go on. “Among the latent needs, the most crucial is the long-term availability of spare parts as this will significantly influence the customer’s decision to continue the relationship with the distributor,” says Ferrarese.

A standard of quality is foundational. Everything builds upon it. A contractor should ask questions of a distributor, and a distributor should ask questions of a manufacturer to be assured of the construction/quality of new products, however trusted they are.

“The distributor must request the specifications regarding the characteristics, merits, and advantages of the new product,” says Ferrarese. “Today, it is not enough to conform to a known standard of quality. On the contrary, standards must be continually raised.”

Excellence invites more that is better still. “We are in a phase of perpetual improvement, where the quality of the product and the company increases consistently month after month,” says Ferrarese.

Ultimately, each product must stand on its own. Yet end users do make use of brands when purchasing. “The end user customer chooses the brand first and then the product,” says Ferrarese. “The customer can only confirm the quality of the product after a period of use post-purchase. By relying on the brand, however, the customer can already form an idea of the product’s quality before making a purchase.”

Balance

With “AI” being bandied about almost as though it were a punctuation mark, everyone must sometimes take a breath and think about the link between purpose and balance. Otherwise, it’s easy to get ahead of ourselves—and we know how it goes when running if we fail to put one foot ahead of the other when zipping along.

Chad Reiffer, the distribution program manager at Hydro-Chem Systems in Caledonia, MI, reminds us that balance matters. In the context of the choices a distributor must make in product selection, he likens the process to bringing into balance the three legs of a tripod.

A distributor considering a new product must evaluate one or all of three things, explains Reiffer. “Is the product groundbreaking or innovative toward a key market sector in some fashion? How marketable and profitable is the product? What is the quality of the relationship/support between the distributor and the supplier/manufacturer?”

In short, innovation is a given. But the innovation must have a purpose. Stability comes by balancing innovation, marketability and profitability, and business chain relationships, explains Reiffer.

Up to a point, a manufacturer known to a distributor may have the advantage. But a distributor will always want to have confirming information about new products.

“If a branded manufacturer is indeed trusted and experienced, it is assumed they have quality-control standards and a proven process in place for bringing new products to market,” says Reiffer. But they should still “expect questions” and “offer proper training, documentation, and materials during a product rollout.”

As for the way in which end users rely on brands or branding, Reiffer believes that “a track record of success” yielded by a product brings the end user back. On the other hand, end users who are new to the industry may rely most on brands.

“As the end user becomes more experienced or has other quality options available, brands may not be as impactful in the decision-making process as pricing, availability, or other factors,” says Reiffer.

Reiffer’s company is both a supplier/manufacturer and distributor. In that consolidated role the company “must be constantly measuring the gap between costs, features, and benefits of the brands it uses,” he explains.

“Our company relies on brands that provide us with innovative and unique products, profitable and marketable products, and products with great support/service from the manufacturer/supplier,” says Reiffer. The bottom line is that a product must be “the right fit” for customers.

Reiffer explains that product selection by buyers—anywhere along the supply chain—involves a psychology of sorts. A negative experience might be relatively minor, but it could be a deterrent to the next purchase. (We all know how one tiny negative experience in the day can erase all the positives from our mind.)

Now, more than ever, a company must be aware of tangential issues that can affect the perception of its brand. It’s about getting it right every time and should something go amiss—even the tiniest problem— correcting it immediately.

Brands matter. Protect them