In a perfect world, manufacturers and dealers would work together. Unfortunately, a reality in the market needs to be considered: many manufacturers and dealers don’t trust each other.
Manufacturers and dealers have different perspectives and other priorities on what is good for them, making trust challenging.
This article reviews the issue of trust and what manufacturers and dealers can do to improve this important factor in their relationship.
Manufacturers don’t trust the dealers for several reasons. They are concerned that the dealer will promote and sell alternative brands, create bad customer experiences, and not provide feedback.
Uneducated dealers can misunderstand how the product should be sold, its purpose, and how it fits an application. This result is increased technical support issues and product returns.
The manufacturers are concerned that the dealers are not following up on the leads well. They worry that the dealers have other priorities contradicting the manufacturer’s goals.
Manufacturers would like to receive projections on what products are required for the next period. This is essential in planning their manufacturing requirements. Unfortunately, dealers find it almost impossible to make projections, and when they do, they overpromise their future sales. This leads to incomplete or incorrect forecasting that affects product availability.
Dealers struggle with their relationship with manufacturers. They rely on them for product availability, fair pricing, and support. Unfortunately, dealers experience unrealistic expectations from the manufacturer, inadequate marketing, broken promises, and the feeling that the relationship is transactional rather than collaborative.
In some cases, manufacturers don’t respect the dealer’s capability to close a sale. This results in the manufacturer and distributor going around the dealer to the end user and selling directly to their customer.
Dealers have found that some manufacturers don’t understand that building a market for their products takes time. Sometimes, it takes over a year to finally gain traction with a new product. When manufacturers lose patience, they increase their pricing to the dealer before the dealer closes the first sale.
Dealers complain that Manufacturers sometimes introduce new products with inadequate support, documentation, availability, and testing, resulting in misapplied product solutions and returns.
Dealers have discovered price misrepresentation. Manufacturers tell a dealer they are receiving the best pricing, only to find out later that other companies are obtaining better pricing.
Trust is the foundation of a strong manufacturer–dealer relationship. Without it, communication breaks down, performance suffers, and both parties miss growth opportunities.
Here are some proven strategies for building and maintaining trust between manufacturers and dealers in the security products industry or any industry where channel sales are critical.
Problem: Dealers often feel left in the dark about pricing changes, product updates, or strategic shifts.
Solution:
Trust grows when dealers feel informed, not blindsided.
Problem: Dealers may feel like they’re just a sales channel, not a valued part of the business.
Solution:
Trust grows when dealers feel heard and respected.
Problem: Dealers can lose trust if left alone to figure out complex products or if customer support is slow.
Solution:
Trust grows when support is proactive and dependable.
Problem: Dealers may distrust manufacturers who undercut them or play favorites.
Solution:
Trust grows when the playing field is level.
Problem: Dealers often feel they’re expected to generate all their own leads without help.
Solution:
Trust grows when manufacturers invest in dealer success.
Manufacturers who invest in clear communication, consistent support, fair treatment, and shared success build long-term loyalty and performance with their dealers. In the competitive security products space, trusted dealer relationships become a strategic advantage, fueling growth, enhancing reputation, and strengthening the entire channel.
Dealers don’t mistrust manufacturers out of habit; it usually comes from experience. Manufacturers who take the time to listen, support, and treat dealers fairly can rebuild even broken relationships.
Here are some ways to improve trust.
Why it builds trust: Transparency signals professionalism and mutual respect.
Why it builds trust: Reliability earns confidence and deeper investment from the manufacturer.
Why it builds trust: Protecting the manufacturer’s brand builds credibility and mutual pride.
Why it builds trust: Knowledgeable dealers reduce support issues and sell more effectively.
Why it builds trust: Manufacturers value dealers who help them improve.
Why it builds trust: Commitment creates stability, which manufacturers sincerely appreciate.
Why it builds trust: Collaboration based on data leads to smarter decisions for both sides.
Dealers who act as partners rather than just resellers gain more than product; they gain access, support, and long-term opportunity. The relationship becomes profitable and strategic when a dealer is transparent, dependable, and aligned with the manufacturer’s values and goals.
Trust between dealers and manufacturers is essential in a successful channel partnership. While manufacturers provide the products, dealers are the face of the brand in the field. When dealers demonstrate reliability, transparency, and a commitment to shared goals, they become valued partners, not just intermediaries.
To learn more about how Kintronics Media can help improve trust, please call 914-944-3425, email [email protected], use our contact form, or visit our Kintronics Media website.