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Compromise is the enemy of excellence
There is a word that, in many companies, is seen as a sign of maturity: compromise. You meet in the middle, everyone gives a little, everyone gets a little....
There is a word that, in many companies, is seen as a sign of maturity: compromise. You meet in the middle, everyone gives a little, everyone gets a little. Sounds fair. But it isn’t. Because a compromise is usually nothing more than the organised defeat of the best idea.
Compromises rarely arise because two options are equally good. They arise because no one wants to endure the conflict. Because the clock is ticking. Because the courage is lacking to clearly say: this solution is better than that one. The result: mediocrity prevails. A compromise feels safe. It isn’t.
Excellence sometimes means making uncomfortable decisions. Clearly stating what you believe is right. Not hiding behind »we’ve reached an agreement«.
At Jarltech, we strive to ensure that the best solution always wins. Not the most convenient one. Not the loudest one. The best one.
And if that means we occasionally ruffle some feathers – we’re perfectly fine with that.
Why do we operate a 3,000 m² Event & Training Centre with a showroom in the middle of nowhere?
First of all: what are you thinking? Usingen is, of course, not in the middle of nowhere – it’s less than 30 minutes by car from Frankfurt Airport....
First of all: what are you thinking? Usingen is, of course, not in the middle of nowhere – it’s less than 30 minutes by car from Frankfurt Airport. And yes, the Usingen railway station is right next door. More importantly, our Event & Training Centre is located almost directly beside the Jarltech campus.
So why do we do it? We do it for you – our partners! Our two-story Showroom, the largest permanent exhibition in our industry, is constantly in use:
- by partners who present hardware and their own solutions to end customers
- by new employees of partners whom we train on the products
- by vendors who hold their sales meetings with us and like to have a look at – and even try out – competitors’ products
- by vendors who present their latest products
On top of that, we host numerous events in our Jarltech Event & Training Centre where partners invite their end customers… large presentations on the 25 m² video wall, dinners with up to 800 guests (standing) or 250 (seated) at round tables, buffets or relaxed gatherings in our beer garden, bar and lounge. For meetings, there are also eight meeting rooms available for breakout sessions.
And, to be honest, we shouldn’t forget that we also use it ourselves – for training sessions as well as for celebrations. From the Jarltech Summer Party to the Christmas Market, networking dinners or our after-work events. We’ve had just about everything in the hall already: from a go-kart track to tightrope walkers to whisky tastings. And one regular guest every year: me, as Father Christmas.
So, you see – yet another value add from Jarltech that helps drive your business forward. By the way, the Showroom is also available virtually on our website. See you soon in Usingen! And be sure to think about how your company can profit from our investment.
Distribution Mechanics: Reservation Costs and Inventory Pre-Financing
For large purchase volumes, our vendors generally grant special prices, known as »project prices«....
For large purchase volumes, our vendors generally grant special prices, known as »project prices«. When we receive a project order from one of our resellers, we typically reserve the available stock until the agreed delivery date and order any missing goods from the vendor.
What »some« may not realise – and what »others« might consider commercially absurd – is this: we always purchase the goods from the vendor at the same price, namely the standard distribution purchase price. If, for example, our purchase price for a printer is €100 but the project price is only €50, we actually sell the product at €50 below our own purchase price.
Naturally, once the project has been delivered, the vendor reimburses us the €50 difference. So far, it’s fair.
However, if the delivery stretches over several months, we finance the full €100 value in the meantime. While the system integrator has sold 10,000 printers for €500,000, we are carrying inventory in our warehouse worth €1 million – because we have paid for it upfront.
That explains why distributors always push for projects to be delivered as planned and not postponed 20 times by the end customer – because that is very expensive. With the typically slim distribution margins (yes, here comes the usual complaining), financing costs can easily »eat up« the entire margin within just a few weeks.
With our resellers, this is rarely an issue: they generally only place orders with us once they have received a firm order from the end customer.
It becomes amusing – and particularly costly – when a vendor says: »This project is definitely coming the week after next. Unfortunately, the end of the quarter falls in between, and we need to place the goods into your warehouse tomorrow – so please hold them for now.«
In the best-case scenario, it works out. In the worst case, the reseller is not even aware of the project yet, and the end customer has not fully committed to the vendor. We have seen it all before. So at Jarltech, we have become somewhat more cautious in such situations. Of course, it is part of our job to anticipate deals from time to time – but buying »hot air« indefinitely is not a sound strategy either.
So please have understanding if our sales or purchasing teams occasionally ask a few more detailed questions about the actual status of a project. Because remember: pure »hope« can be expensive.