For some, big market opportunity isn’t always necessarily “good” market opportunity. There is more at play here from manufacturing capabilities, to delivery schedules, and even regulations. The extra factors at hand make plenty of room for failed expectations or even worse unforeseen liabilities with Enterprise level entities. Leaving one to maybe think, what is the cost vs value of entering or beefing up my companies presence in this market?
That answer sits behind an understanding of how flexible your business is, and knowing what you actually need to accommodate of the “requirements” that may be heading your way. As in any market the “Crawl, Walk, Run” approach is suggested, not only to allow your teams to get acclimated, but to make sure you are prepared for success.
The decision making process here can be long, but innovative products that fit what the industry needs could also see multi-million dollar contracts appear over-night. With over $30B spent annually in equipment annually and major “re-growth” on the horizon post-Pandemic, the road ahead could even see some significant lift. Surges in Consumer Travel may help as the “Work Travel” world figures out how to establish a new set of rules around more acceptable “Remote Work” culture.
Thankfully the only thing really longer than the decision making process in HoReCa Equipment is the standards cycle. Independents and Chains alike look for products they can purchase consistently for years. Some of these products can live in environment for over 10 years with brand-centric products pushing into “driving-age” and beyond. This kind of buying model does lend itself well to forecasting and streamlining your process for profitability, not to mention allow manufacturers to pay more attention to quality.
Furthermore, relationships at this level are not unseated easily and many times, because of contracts, can only be disrupted if the incumbent fails supply demands considerably. If it is security in the pipeline you are looking for, this is an advantage to the Hospitality and Foodservice Equipment Channel that is hard to match.