Are Exclusive Territories Always Best for Window Dealers?
If you’re a home improvement contractor that has met with manufacturing company representatives, there’s a high likelihood that you’ve heard the term “exclusivity” thrown around quite a lot. For example, when you’re looking to become a window dealer and you’re combing through your manufacturer options, one may mention the possibility of giving you exclusivity in a territory.
But before you jump right in and partner with said manufacturer, it’s important to ask: are exclusive territories always best for window dealers? What are the relative pros and cons associated with having exclusive rights to a territory? Having a thorough understanding of the answers to these questions will suit you well as you look to determine which window manufacturer would make the best partner for you.
First of All, What Is Territory Exclusivity?
Before diving into the good and bad that accompanies territory exclusivity, it’s important to truly understand what is meant when a manufacturer offers it to you. Well, territory exclusivity is exactly what it sounds like—it gives your company exclusive marketing and installation rights for the brand with which you’ve partnered with. This means competing contractors cannot sell products from that manufacturer within your area.
Why Can Exclusive Territories Be Good for Window Dealers?
Being granted exclusivity as a window dealer can certainly have its advantages. Consider the basics behind the principle: you’re the only one in your service area that has windows from your manufacturer. That means whenever homeowners want that particular brand for a replacement at their home, they have to come to you for the installation, which can drive your business up. Plus, being the exclusive dealer of a first-class manufacturer can help your marketability to your customers, which will also help business increase. Think about it: Only the biggest and best window contractors are given exclusive rights to a territory. Not to mention, on the home front, working with only one manufacturer can make day-to-day operations easier, at least in terms of logistics and communication.
Why Can Exclusive Territories Be Bad for Window Dealers?
As advantageous as it can be, exclusivity on its own doesn’t guarantee success for your business. If your manufacturer’s windows—for one reason or another—aren’t selling, you’re going to be in a tough spot. And in some cases, being an exclusive dealer can limit the diversity of your inventory. If your one and only manufacturer doesn’t offer a wide variety of styles, frame types, or customization options, you run the risk of failing to meet your customers’ needs.
What Determines Whether Exclusivity Is Good for Your Company?
The question essentially boils down to the territory itself. If you’re given a wide territory that affords you plenty of potential to grow your customer base, it’s more than likely going to yield great results for your business. But if your territory has limited opportunities for growth, exclusivity may not be worth it to you. And of course, the quality of the manufacturer plays a significant role as well. After all, why would you want exclusivity over windows that are lacking in visual appeal or energy efficiency? Plus, even if the windows check all the boxes for what makes a great product, perhaps the manufacturer isn’t well-known enough to make a splash. Not every manufacturer possesses the brand power that makes exclusivity a plus for your business.
Becoming an Exclusive Dealer in Conservation Windows’ Network
Conservation Windows has been one of the industry’s most highly respected manufacturers since 1997. Although we have an expansive network of dealers, we don’t offer exclusivity to everyone. But if you’re a dealer that sells a high volume of windows or plans to sell only our windows and no others, we would love to discuss the possibility of providing you with an exclusive territory. Contact us today to learn more about exclusive territories and to find out the availability of the territory you’re interested in. We would also be happy to discuss the many benefits you can enjoy when you become a window dealer in our family.