One size does not fit all. For one sale, we can wear a multitude of distributor hats. At Hulet Body Company, we work with our customers to provide them with a truck body application to uniquely fit their needs. Over time, we have built relationships with several companies we proudly represent, bringing to the table the most current technology and ideas to create a unit that will efficiently meet and exceed the needs of our customers.
As a liaison between the manufacturer and end user, the relationship doesn't end once the product is delivered. We assist with the maintenance and upkeep of equipment, any warranty issues, and support the customer may need. There are so many more opportunities for your company beyond the initial sale. In our business, we are always looking for ways to grow. Often times, bringing on a new line that fits our current business model is an easy way to start as we already have a broad customer base.
The NTEA provides excellent resources for finding new and well established companies looking to broaden their market. It's an excellent tool for researching opportunities for our company to expand our distributorship.
This allows a manufacturer to get its products to a wide network of retail outlets without incurring the expense of maintaining that network. Part of being a sales organization is offering customer service and support. A distributor is a sales organization that must maintain a qualified and effective customer service department that deals with retail customer accounting issues, shipping problems and product issues.
The distributor also takes on the responsibility of replacing products that are still under warranty or arrive to the retail client damaged. The manufacturer only needs to provide customer service to the distributor, which significantly reduces the administrative overhead for the manufacturer.
Manufacturers often use distributors to do custom configurations for retail outlets and end users. The manufacturer will require that the distributor send personnel to become certified in doing configurations, and then the distributor can charge its retail outlets a fee for doing custom work. The manufacturer ships the distributor the parts, and the distributor does the integration work. For example, if a particular retail client has a corporate customer that wants upgraded memory installed into all of its computers, then the retail client would order custom configured computers from the manufacturer.
It provides the most consumer reach, continued buyer trust and also offers an opportunity for substitution buying, where a customer purchases a similar item rather than the one they were initially looking for.
For example, buying one brand of soda, toothpaste or coffee over another because it is in stock or on sale. Selective distribution setup is a good middle ground between exclusive and intensive distribution options, and many industries or businesses use it.
It balances selecting specific locations or selling opportunities with having more presence in the market than exclusive distribution. It offers you a fair amount of control, a higher feeling of consumer exclusivity compared to intensive distribution while still having greater consumer reach.
Selective distribution is often for a certain product and its fit within a store. For example, a high-end watch company may partner with a luxury department store to have more reach outside of its own flagship store, but selectively chooses not to partner with big-box or warehouse stores that could diminish its luxury appeal. Dual distribution combines both direct and selective methods to reach a larger market audience. For example, a well-known cell phone manufacturer may have its own storefront locations while still partnering with cellular service stores that sell package plans and hardware.
The benefit of dual distribution is growing your market influence while still maintaining direct customer sales. Reverse distribution flows from the consumer back to a company, rather than the other way around. It typically follows a path of going from a consumer to an intermediary and then to a business, and is most often used for recycling, refurbishing or disposal of items.
While reverse distribution is the least frequently used type of distribution, it is a growing method and business and doesn't actually have a producer. Here are some examples of reverse distribution and its uses:. When choosing a distribution channel, consider the brand, profitability and operational scale of your product or organization.
Here are three primary considerations to focus on:. Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. Career Development. What are distributors? Manufacturing plants Mail order methods E-commerce website Storefronts, booths and shops Door-to-door sales. Producer to retailer to consumer, like many ready-made garments, electronics and food items Producer to wholesaler to consumer, like industrial goods sold to government agencies Producer to wholesaler to retailer to consumer, like most goods used on a daily business where competition is high among other brands Producer to agent to wholesaler to retailer to consumer, often for a particular geographic location or area, like agricultural goods.
Reusing products, like industrial or construction materials, shipping containers and some electronics Refurbishing products, like computers, electronics and certain furniture or clothing Recycling products, like paper, plastic and glass Disposing of products, like waste and organic material.
Considerations when selecting a distribution channel.
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