Distribution in Switzerland

Distribution countries

Hardcase sales in Switzerland were not growing at anything like the rate they were growing generally in the international markets. Trust Network’s research found that the obstacle was too high margins being taken by the incumbent. This meant low unit sales, which in turn led to small shipments from the Hardcase factory in the UK, and high landed costs that magnified the price hike of the high distributor margins even further.

At first, the incumbent distributor was persuaded by Trust Network of the benefits to them of much higher Hardcase sales if they reduced their margins. The distributor reduced their margins, sales rose significantly. The owner of the incumbent distributor even telephoned Trust Network personally to express their thanks at how the new strategy was giving them much greater market share. However, the incumbent later reverted to form, where upon Trust Network began a process to change the distribution. They succeeded in keeping the goodwill of the incumbent by encouraging them to re-think their margin policy and at all times making them aware that any new proposals they put forward would be listened to carefully.

At the same time, and also with the full knowledge of the incumbent, we researched Switzerland to find alternative musical instrument distributors, approaching them with the same arguments of how Hardcase could become a significant business for them by using sensible margins. Several distributors were persuaded of the argument and put forward sales and marketing proposals to become the drum case distributor. Musica Nova AG was appointed as the new distributor and has continued to be Hardcase’s distributor since 2001.