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The Benefits

The benefits of this initiative, as Panasonic see them, are many and varied. Let’s look at a few.

If you have a single supplier who can provide you with basically the same goods that were previously supplied to you by several, your supply chain will become simpler and more manageable. Let’s face it: most people sell pretty much the same thing made (or supplied) by different people. The quality varies but the product is much the same. Why not streamline, and deal with one supplier whom you know will sell you a high quality, fully warranted product?

As attractive to a current or potential dealer is the likelihood that a shop with a household name above the door is going to be worth more, (because its cachet is higher) and will be easier to sell-on than a shop owned and promoted by ‘Joe Blogs’. The Panasonic brand is thereby likely to be maintained through time as well as high street space  good for Panasonic, good for you. And that household name above the door is also likely to increase your footfall. If it doesn’t, it’s not a household name, or the people in the houses never leave them or watch the television.

Perhaps even more important is the fact that if your dealership is backed by the advertising clout of a big company, your business will probably benefit. If you can spend as much on advertising your dealership as Panasonic can, you should. If you can’t, perhaps you should read on. . .

Peace of Mind

The bottom line is reassurance. You want to know you’re selling a good product bought at a good price from a reliable supplier. The consumer wants to know that s/he is buying a quality product from a bona fide dealer that will be fully supported by a comprehensive warranty. For the customer it’s likely that this reassurance will only be subliminal, but that just makes it even more likely to influence their decision to buy or not. (It’s true, ask the boffins).

Confidence in retailers’ validity is a critical factor. Panasonic is a big company but its image is relatively wholesome  and rightly so. Concerns about globalisation and multinationals aside, the benefits of being part of an international concern are - for a dealer - real, and tangible. But of course the proof of the pudding is in the margins, as we’ll see.

A Case Study: shop@Panasonic, Brighton

Shop@Panasonic on London Road in Brighton is one of five shops in the Southeast owned by Radbold Ltd. Opened in December 2000, the shop was previously a computer store adjoining a Sony dealership also owned by Radbold. By opening the shop@Panasonic dealership where he did, Peter Bowden, director of the company, took the unusual step of running two stores apparently in competition right next to each other.

The refit took around two weeks and was done to an impressive standard, creating a shop @ Panasonic that is eye-catching and amenable. The stores are internally connected, but as far as the public is concerned, are separate entities. At around 1200 square feet, the Panasonic shop is slightly the larger of the two. For Radbold, selling white goods (alongside brown) was an advantage but it was a new experience - so took a little getting used to. Salespeople were, however, wisely set attainable targets and within two months, those targets were being met.

For Radbold, it seems the move has been a success: much to the surprise of Sony, the Sony dealership is now actually busier than it was before the shop@Panasonic store opened next door. Destination Shopping has come to Brighton: people travel to the London Road looking for something specific, or they just come to look. Either way they seem to walk out satisfied.

Radbold are hoping to open another shop@Panasonic on or around the south coast within the next 6-10 months  a sign that, for them, business is healthy. Peter Bowden’s foresight has proved that in business, alliance can be more beneficial than competition.  

Copyright 2001 Nick Green, All rights reserved

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