K2 Dealers Sign Up For Long-Term Partnership

As part of its programme of providing its customers with a commitment to service and quality, K2 has signed up over 50% of its dealer network to a three-year trading agreement. The Trading Partner Customers make up more than 65% of K2's trade sales. With negotiations already in progress with a number of additional customers, the company expects to secure a further 11% of its dealer business by signing three-year trading agreements within the next few weeks.

Explains Sally Fielding, Managing Director of K2: "Many of our dealers have been exclusively stocking K2 product for three or four years already and it seemed natural to reward this loyalty by offering them the opportunity to enter into a trading agreement. In this way, because we know that trading partner dealers are committed to buying product from us for the next three years, we are able to provide them with financial rewards, as well as the additional benefits of our excellent service record, technical support and marketing assistance."

While some in the industry have spoken out against sole supply deals, K2 has adopted a strategy of building closer relationships with its suppliers in order to ensure it remains close to the pulse of the market and in tune with dealers' requirements. The company has consistently upheld service delivery standards of 99% across its business and is continuing to invest in equipment, IT, logistics and personnel to ensure that it upholds this record.

Amongst the dealers to sign up to a three-year trading agreement with K2 is Scarborough-based SWC, which has been stocking K2 product since January 2001 and distributes across the entire Yorkshire and North East region. Comments Paul Richings, Managing Director at SWC: "Because we have been dealing with them for so long, we know them well and know that they have a high quality product that we can work with. We had no plans to change the range we carry and the offer of a trading agreement was very attractive. It means that we gain increased benefits from stocking K2 product while maintaining the service and support we have come to rely on as integral to the success of our business."

SWC's business has expanded significantly since becoming a K2 dealer, as like K2, they offer their customers a first class standard of service, a pattern that can clearly be mapped across the K2 dealer network. Sally Fielding continues: "A significant number of our dealers have grown by at least 30% over the past year and we will do everything we can to continue to support their success. We have a role to play in the profitability of their business, not only by supplying high quality, functional products, but by offering them opportunities to sell more effectively, deliver on their service commitment and pass on financial savings to their customers. That's what the trading agreement is all about - finding ways to work together more closely, a partnership in every sense of the word."