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Free your customers

November 10, 2002

Executive summary: Distributors are caught in a trap. To free themselves, distributors will first need to free their customers. For-fee services will play an important role in helping distributors break out. By avoiding potential barriers, distributors can design a successful fee-for-services strategy to move forward with a plan that benefits their bottom line and the bottom line of their customers.

Every distributor knows the trap. Customers continue to demand high levels of support but are increasingly unwilling to pay for the value added. It gets worse. Products and brands are widely available, so there are plenty of competitive distributors ready to step in if service levels suffer. Finally, new channels have emerged, forcing distributors to fight even harder to ...

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