RELATIONSHIP DYNAMICS: MANUFACTURER AND RETAILER
By LOYD IVEY, Chairman & CEO Mitek Corporation


To someone on the outside looking in, the relationship between manufacturers and retailers may seem less like a relationship than a means to an end. The manufacturer supplies the product, the retailer sells it. Everybody makes money, everybody's happy. While the importance of the bottom line is undeniable, it would be shortsighted to think that there is nothing more to this relationship than completing transactions. In the grand scheme of things, it isn't about who can build a product and deliver it on time. Anybody can do that. It's about being a good partner to your customer, and that takes commitment.


Service First
Have you ever wondered how Nordstroms has managed to separate itself from its competitors? There are a million places to buy a pair of Rockports and everybody sells Polo shirts. And while the coffee bar and the shoeshine stand are both nice bonuses, the main thing that differentiates Nordstroms from its competitors is its customer service. I've never had a Nordstroms salesperson tell me he needed to get permission for anything or ask the manager about this or that. The decision-makers are right in front of the customers. Nordstroms makes your decision to do business with them very easy by keeping it simple.

Accessibility
It's important that the CEO of any company pay attention to detail, view risk as opportunity, be hands-on, and so forth. Conspicuously absent from that list of qualifications, however, is the ability to operate as C.R.O., or "Chief Relationship Officer." Success in that aspect of the job is due in large part to making yourself accessible to the customer. Simply put, customer service must start at the top. Since founding Mitek in 1968, I have never used the "Do Not Disturb" button on my phone. My contact information is available to all of our retailers. All of our sales people and I can be reached 24/7 via cell phone or AOL Instant Messenger. Again, by making yourself accessible, you are asserting yourself as the easiest company with which to do business.

Trust
Once you've established to the customer that you are easy to do business with and that you are willing to make yourself accessible, you have started to build trust. You have begun to establish your company as the one that can be counted on for prompt and thorough follow-through. Just like a quarterback in football has to trust that his wide receiver will get where he is supposed to be on the field, your business partners must be able to trust that you will be there for them when they need you.

Chemistry
With trust established, manufacturers and retailers become increasingly comfortable dealing with one another and start to interact in a team dynamic. In short, you've got chemistry. Any veteran coach will tell you that talent plays a large part in building a successful team. He will also tell you that the difference between a good team and a championship team is chemistry. The Lakers of the 80s and the Chicago Bulls of the 90s had it. Both had star players and won several championships. But in addition to the standouts, each team was blessed with role-players who performed better with each other than they might have with any other group of players. Our business is the same way. Manufacturers and retailers make up the team and business is the game. And while it helps to have superstars it's often more important that everyone on the team can be counted upon to bring something to the table that when stirred into the same pot, makes for a great stew.

Collaboration
Now comes the execution of teamwork born of good chemistry. Several of our promotional staff recently attended a car show in Southern California that drew an audience of about 30,000 16-24 year-old kids. Prior to the show, we asked one of our local retailers if they'd like to display any of their project cars in our booth. They gladly contributed a 2001 Toyota Sequoia into which they had installed a custom audio system. By teaming up, the retailer garnered significant public exposure in a valuable market segment and we were able to show 30,000 consumers what was possible using our products! Not only was it was a perfect marriage of two partners benefiting from a great collaborative effort, it was an opportunity to reinforce trust and further build upon team chemistry.


Just as anybody can sell shoes and Polo shirts, anybody can build an amplifier or subwoofer, promote it, and deliver it. At the end of the day, the most successful relationships between manufacturers and retailers are those built on top-notch customer service, accessibility, trust, chemistry, and the ability to work together to keep the end consumer happy. I love this business, just about all of my friends are in this business, and as manufacturers and retailers, we are in a position to support one another as teammates to grow our own businesses and in turn our industry as a whole.