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MagneTek, GE Lighting alter ballast agreement

In a move intended to give distributors better service, the lighting group at MagneTek, Inc., Nashville, Tenn., is returning sales authorization for its full ballast line, including electronic ballasts, to 29 independent agents. At the same time, MagneTek has agreed to add magnetic and HID ballasts to the package it sells through GE Lighting's direct sales force under a 1997 agreement. In essence, distributors will be able to buy any and all MagneTek ballasts through either source, and MagneTek will have a vastly larger number of salespeople selling its complete ballast line nationwide.

Under the terms of the restructured marketing agreement between Nela Park, Ohio-based GE Lighting and MagneTek, GE Lighting representatives and MagneTek agents will sell a complete line of MagneTek-manufactured electronic, magnetic, compact fluorescent and HID products to their respective distributor customers. Giving both GE Lighting representatives and MagneTek reps access to the full range of product makes it easier for distributors to purchase the products and makes it possible for distributors to buy from one source, says Kirkland.

GE Lighting's factory salespeople and MagneTek's independent reps previously called on specific distributors in a market area. Who calls on whom was decided by analyzing factors such as existing GE lamp distributors in that market; the expertise of the MagneTek rep; previous distributor-rep relationships and existing national account arrangements.

MagneTek's reps like the fact that GE Lighting and MagneTek are giving distributors the final say over who they buy ballasts from. Several of MagneTek's reps were pleased to have the electronic portion of MagneTek's ballast business back.

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