By Andrea Vermurlen
In early 1996, Galco Industrial Electronics was faced with a challenge. The distributor wanted to offer connectors to an established customer base, but it did not have the benefit of name recognition that some of the more well-known brands carry. Frustrated by long lead times and high prices, the distributor`s group of local original equipment manufacturer (OEM) customers wanted an alternative connector source. The hunt for a product line began - one that would enable the distributor to offer its customers fit, form and function-equivalent products at extraordinary values.
The Successful Hunt
In late 1996, Galco was named an authorized distributor of DDK Ltd. products. It was the embodiment of a strategy that has been repeated at the company with a number of product lines - a strategy that offers customers cost savings for parts that are technologically equivalent to the leading brands. In the three years that has passed, the company has continued to successfully market these products to its OEM and end user customers.
DDK Ltd. is a global connector supplier that provides interconnect products for the computer, computer peripheral, data communications, telecommunications and industrial markets. The company represents their products as featuring the highest quality and the latest interconnection technology. However, that is not the primary reason they were chosen by Galco.
According to Byran Rupert, product sales manager, DDK`s circular connectors were of particular interest within the product line. As direct replacements for a leading manufacturer`s circular connectors, customers may realize better lead times and competitive pricing, depending on the shell style, by using DDK`s connectors. "With a selection of 83 insert arrangements, a cadmium-free construction, and availability in several finishes, these connectors are a high-quality, lower cost alternative," Rupert said.
"The best fit for the DDK product line has been those OEMs that are not bound by a spec, so they are able to look for alternative products. The customers that I have worked with find that the DDK quality is just as good as the leading brand, and at a substantial cost savings. Plus, they enjoy faster turnaround time because we`re a local stocking distributor," said Mark Francis, outside sales representative for Galco.
Providing Services
In addition to product quality, providing technical assistance and offering value-added services to customers is important to Galco. Following the acquisition of the line, some DDK factory representatives conducted a series of training sessions with the Galco sales representatives so they would be knowledgeable about the products. Galco also made sure that product part numbers, prices and delivery were established on its computer system and included in the company`s industrial electronic control product catalog. A sales process was developed that was designed to help customers integrate the DDK product into their operations in an efficient manner. When a customer expresses an interest in a connector product, a thorough evaluation of requirements is performed, product samples are obtained for testing and, where necessary, purchase order blankets are negotiated.
The primary goal comes down to offering superior customer service. The OEM customers using the drop-in products are getting the product they need faster and cheaper, and they meet their production deadlines and improve their processes. And that is the mission behind every transaction at Galco.
ANDREA VERMURLEN is marketing manager, Galco Industrial Electronics, 26010 Pinehurst, Madison Heights, MI 48071; (800) 521-1615; Fax: (248) 542-8031.
