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Thoughts from MCAA, part 1
May 22, 2007

Yesterday I was at the MCAA (Measurement, Control & Automation Association) 2007 Industry Forum. This organization may not be familiar to you if you are an end user because it is effectively a trade association for companies that make and sell instrumentation. You would certainly recognize the members though.

The opening presentation was by Dr. Michael Workman, and entitled "New Rules for Collaboration in the Distribution Channel." It was aimed at those selling products, but had some critical information for those who buy products as well. There were interesting points about how instrumentation (and many other industrial products) are sold and bought.

First, buyers will always try to commoditize products, no matter how sophisticated and application driven they are. The more ways there are to buy something, the lower the price will be.

Second, the first is possible due to the fact that sources of product information have been separated from the source of the product. In olden days, if you needed product information, you went to the local sales rep or maybe back to the company. The people that provided the product provided the information. That is no longer the case in most situations. You can find information about virtually anything online, so you have no connection to the sales channel. You don't need help from a rep. (In reality, you probably do, or could at least benefit from his or her help, but it's not absolutely necessary.) Traditional hierarchical selling methods don't survive well in this environment.

This takes cost out of the buying process, but does not ensure that you get the right product for the job. Is this a problem? If so, what's the answer? More tomorrow.

Posted by Peter Welander on May 22, 2007 | Comments (0)