The newly-signed deal enables FEGIME’s German members to negotiate independently with Eldon, but with the benefit of doing so within a predetermined framework. Leveraging the strength of FEGIME’s overall size and market share, the established structure fixes payment, financial, and stock handling arrangements for all of FEGIME’s members.  

The deal offers also significant advantages for Eldon’s end customers. First, because Eldon is delivering product to wholesalers in larger batches, there will be a significant reduction of transport damage. Second, as the stock will be stored much closer to the customers’ locations, order filling times will be significantly reduced. Third, because each wholesaler has its own sales force, customers will receive increased personal attention — of course customers can always contact an Eldon representative when issues arise that require specific expertise. Lastly, in the new arrangement with FEGIME, Eldon’s customers will keep the same discounts they presently enjoy.

 

“This is good deal for all parties involved,” said Stefan Sandkuhl, Sales and Marketing Manager, Eldon GmnH “Our customers gain access to an increased number of purchase points for Eldon products and FEGIME has used its collective bargaining power to negotiate an excellent structure for its members to make individual deals.”