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Dealers ask for the moon, India Inc plays ball

BS Corporate Bureau

Dealers have never been a more pampered lot. All-expenses-paid holidays in exotic locations, financial incentives, and freebies such as cars are being offered to them as industries face the spectre of dwindling sales.

Companies are now turning to dealers to revive their sagging fortunes. Though incentives have always been there for high-performing dealers, the play has now reached a crescendo.

Thus, National Panasonic India Ltd has revised its incentive scheme from a quarterly offering to a monthly one. "Each month, on purchasing and selling goods worth Rs 1.2 million, we are sent on trips abroad. Destinations vary between Australia, Singapore and Hong Kong," a dealer said.

Considering that a tour of Australia costs around Rs 60,000, the company is rewarding the dealer with 5 per cent of his sales turnover.

Apollo Tyres invited all its dealers to Delhi last week for a gala function. Lucky draws included an Opel Corsa. The company has also launched a scheme called "Kaun Banega Sonapati" which offers gold worth -- hold your breath -- Rs 10 million to the lucky buyers and dealers. Select dealers have been sent abroad under a new programme called "Apollo Tyres Around the World Dhamaka".

Recently, senior executives from Maruti dealerships found themselves in Switzerland along with their spouses. "The managing director of my dealership is just back from Switzerland. These are pleasure trips wherein all the expenses are borne by Maruti. Even daily allowances are given to the executives," a leading Delhi dealer for Maruti gushed.

Toyota Kirloskar Motors India sent the staff of its dealerships to Pataya (Thailand) as reward for meeting their sales targets. If a Toyota dealer achieves his target, the company gives him an additional cash discount of Rs 5,000 on each unit of the Qualis.

Not to be left behind, Daewoo Motors India Ltd is adopting eight poor-performing dealerships for a period of six months to a year and will operate them with an aim to improve the company's image as well as to push up sales.

And the dealers are not complaining. Listen to Ashok Sachdev, a dealer for Ford, Hyundai and Toyota: "When the going is tough, car companies begin to step up their motivational activities towards dealerships. They become more understanding."

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