Addressing Territorial Boundaries and Strategic Implications

Addressing Territorial Boundaries and Strategic Implications

Manufacturer territorial boundaries established for your reps today could become their biggest challenge tomorrow.

Manufacturer territorial boundaries established for your reps today could become their biggest challenge tomorrow.

As the tidal wave of dealership expansions progresses, manufacturers must re-evaluate their traditional territorial boundaries. There is an inherent issue for most (if not all) open-line manufacturers and their representatives: the geographic boundaries established for their representatives, which have determined the dealerships and specifiers within a sales territory for decades.

While some tweaking to territory boundaries is very common, by and large, these boundaries stay somewhat consistent year over year. These boundaries help organize geographic regions and track things like orders, commissions, and project registrations. However, they may have little jurisdiction as dealerships continue to grow into new geographic areas that span multiple sales territories.

At Greyspace, we highly recommend that manufacturers take the lead in creating a unified experience for the dealer regardless of your representative sales territorial boundaries. Having a cohesive brand experience based on service and buying contracts will go a long way for your brand as dealerships establish their go-to partners during expansion. Since independent reps are not W-2 employees for open-line brands, there are some legal ramifications to consider as brands strategize around what a fused together brand experience might look like. However, it will still be incumbent on the brand to initiate and guide this strategic discussion with their representatives and dealer partners.

Conclusion

While the Wild West of expansion and consolidation will inevitably continue over the next few years, those that get ahead of these trends and elevate their role in the client buying journey will likely have the opportunity to significantly grow their brand and their relevance as consolidation ensues. Dealerships are looking for help from open-line brands to support their growth goals, and those that deliver a solution will have a tremendous head start against their competition.

Addressing Territorial Boundaries and Strategic Implications

Shea stays connected to street-level industry trends and transforms them into strategies for growth.