It is very important to get to know about different ways of business distribution for you to distribute the products to the consumers, especially if you are someone who does not have a brick and mortar retail store.
The methods of distribution that are the easiest often tend to take the biggest chunk out of your share. To choose the distribution methods that correctly suits your business, you will have to weigh the logistical ease with the total cost. You would also have to find out the special circumstances that can often make a few options unavoidable like the products that need to be delivered to the consumers in a frozen state.
Tips on Distribution
The popular methods that are chosen widely to distribute a product mostly include distribution through wholesalers, distributors and also distribution by you. A lot of time and infrastructure is needed for self-distribution; distributors and wholesalers often add that will make you earn less for your products.
Self Distribution for Local Sales
It is a good way to distribute the products yourself if you are selling your products locally and if you have the personnel to do so. This saves you from paying to the middlemen like agents, distributors, and wholesalers; self-distribution allows you to keep the entire price of the wholesale purchase. The cost of distributing products by yourself can be lower than the cost of marking down the wholesale price, and this mostly is dependent on the volume you intend to sell and the volume you sell.
The Role of Distributors and Wholesalers
While working with distributors and wholesalers, you will need to deliver your products to a central location, saving up your time to deliver to individual stores in the city. Wholesalers are people who do the basic legwork of getting the products from one place to another after invoicing the customers. They are also involved in the marketing side of the business and are more involved in sales and hence they often place a high markup for the products of your business which can be twenty-five to thirty percent for distributors and ten to twenty percent for wholesalers.
Always be prepared to do the marketing for your business if you are planning to work with wholesalers. This mostly includes the job of convincing the retailers to buy the products of your business.