Industrial distributors take possession of the products they sell and assume the role of partner with manufacturers. This means that, in the early days, it is much more likely that distributors will buy directly from manufacturers than through wholesalers. As manufacturers grow in size, it becomes more and more likely that distributors will take possession of their entire product lines.
In general, there is a lot of overlap between manufacturers and distributors, but there are differences as well. Distributors are typically larger and more professional-looking than manufacturers. They may be the primary sales force for a manufacturer, but they still work for their own brands. If the distributor’s business is in one of the product lines of a manufacturer, the distributor will likely have more authority to set prices and provide distribution services like those offers by companies like www.cir.net/conveyor-belts-lacing/ to other manufacturers.
One important thing to consider when evaluating distributors is that they may have to sell the same product line to more than one manufacturer. If the manufacturer provides the sales force for the distribution, the distributor has an incentive to ensure the manufacturer is successful in selling its product line. In order to succeed with distributors, the manufacturer may need to offer significant discounts to distributors and require them to spend a lot of time meeting with distributors or selling the products directly to them. In some cases, this is the way the manufacturer makes a profit. If the manufacturer provides the sales force for the distribution, the distributor has an incentive to ensure the manufacturer is successful in selling its product line. In order to succeed with distributors, the manufacturer may need to offer significant discounts to distributors and require them to spend a lot of time and resources developing the product line, developing new products, distributing them and promoting them with distributors and retailers. In the end, the manufacturer will likely make most of its sales through distributors rather than directly to the consumer.
Distributors, on the other hand, have an incentive to sell the product line to retailers, which are the primary customers for the distributor. Since most retailers have the ability to source products on a per-unit basis from multiple suppliers, they may be interested in purchasing products produced under the “multi-source” approach. The multiple-source approach has been the most successful in recent years, with approximately 90% of products being distributed directly to consumers.
For this reason, distributors are often more likely to provide retailers with additional incentives to purchase products from the distributor. As a result, distributors can be found to pay lower wholesale prices, often considerably lower than those of their competitors. Additionally, the distribution channel is often the most efficient means of distribution, allowing the retailer to minimize his or her costs. These factors, along with the fact that retail sales are often the largest portion of an individual or a business’s revenue stream, often encourage an individual or a business to seek out and establish relationships with distributors.