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Latin America Focus
AEM Distributor Search Helps Build Relationships
Member pumps up its Latin America efforts
“To be successful finding distributors in Latin America, you have to work with someone who knows the customs laws, the companies they are talking to, the markets those
companies serve, and the culture they operate in. AEM is well versed in all
of that, making this service a great value for our company and one that will help us successfully build our international business.” |
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AEM’s Latin America Desk conducted a distributor matchmaking search and tour in 2001 to help 15-year AEM member Thompson Pump & Manufacturing of Port Orange, FL meet its aggressive expansion goals for Latin America.
AEM Distributor Matchmaking Search Service
Thompson Pump turned to AEM to help it find South American distributors to complement its developing relationships with new dealers in Puerto Rico and Mexico.
The company participates in the Association’s Contractors Pump Bureau and International Council, among other groups, so International Sales Manager Dan Gutierrez knew the distributor matchmaking search service the company needed was available through AEM’s Latin America Desk. The Association established the Latin America desk in April 2000 as it expanded its international services to help members increase their marketing initiatives globally.
“We offer services to meet our members’ needs at any level,” explained Arnold Huerta, AEM’s Latin American Marketing Manager. “Some companies with existing Latin American distribution are looking for a few new contacts. New entries in the market are typically looking for more information and assistance.”
The Association helps its members define Latin American distribution goals and uses its in-country contacts to establish accurate lists of current distributor information, screening potential candidates, arranging meetings, and even accompanying its members to those meetings when possible.
“AEM identified reputable distributors for us in several countries that were either active in the construction equipment market or working with closely related products such as valves and piping that may be able to help us with their expertise in those markets,” Gutierrez recalled.
Initiating Dialog With Distributors
“Quality distributors are usually very busy. Their time is at a premium and manufacturers should be prepared to present a strong package of material on their company and its products.” |
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AEM arranged face-to-face meetings with “high potential” distributor candidates to help establish a dialog about Thompson Pump’s approach to marketing as well as discussing the distributors’ operations and touring their facilities.
In 2001, Huerta accompanied Gutierrez to Chile, Ecuador, and Peru to help facilitate meetings with nearly 30 distributors, spending two days in each country and scheduling up to six appointments a day. Thompson is still in contact with several distributors Gutierrez met on that trip.
“You have to build a relationship, then the distributors have to do market research on pricing, competitive products and demand,” Gutierrez said.
Huerta said the pace of business and the follow-up required to solidify relationships can sometimes frustrate American companies, but he added that if cultural differences are accounted for, this period can provide long-term benefits by helping to avoid false starts.
Developing Long-term Relationships
“AEM offers services to meet our members’ needs at any level. Some companies with existing
Latin American distribution are looking for a few new contacts. New entries in the market are typically looking for more information and assistance.” |
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“Occasionally there is a ‘love at first sight’ situation where you find the perfect match right away. However, it is far more likely to take between six months to a year to cement a relationship,” Huerta explained. “Quality distributors are usually very busy. Their time is at a premium and manufacturers should be prepared to present a strong package of material on their company and its products.” Thompson has embraced this approach, investing in long-term relationships with potential distributors in South America.
“AEM’s distributor search service helped us tremendously,” Gutierrez said. “To be successful finding distributors in Latin America, you have to work with someone who knows the customs laws, the companies they are talking to, the markets those companies serve, and the culture they operate in. AEM is well versed in all of that, making this service a great value for our company and one that will help us successfully build our international business.”
>>Go to Latin America: Contractor Focus Groups Provide Targeted Business Intelligence
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