What is the best distribution method?

What is the best distribution method?

Let's set the stage:

  • You're a manufacturer of a consumer good
  • You want to sell to the end user as quickly and as easily as possible
  • You want to keep cost of overhead down
  • You want to reduce the amount of middlemen as possible
  • You need to keep the product's integrity 100% intact
  • You need to maintain branding without misrepresentation

Which distribution method would you recommend to this company? The one on the left or the one on the right?

In my opinion, and I invite the opinions of others in the comments below, I would argue that the company that can directly sell their product to their consumer is the best distribution method possible. The one on the right.

The follow up questions, I would think, would be how?

  1. How do you sell directly to your consumers?
  2. How do you promote your business without traditional distribution representation?
  3. How do you market your business with out traditional distribution representation?
  4. etc.

[Now, unfortunately, there are some items you can't buy directly. For example a car you need to go to a dealer aka distributor (however Tesla has overcome that with some legal loops). So for argument purposes let's say we are talking about consumable products like skincare, electronics, basically anything you can order from Amazon.]

Back to the follow up question on how. Well, what if you could utilize a team of sales representatives that are fully trained on the product that's manufactured (nothing new here right? You need a trained sales force). Let's have them go to the market/consumer directly and represent your product. Have the representatives work out of their home utilizing the internet to share the products and fulfill orders. The reps won't need any reimbursements for office or counter space (so as a company you're saving on overhead big time). The representative takes the order online and the manufacturer fulfills the order and ships directly to the consumer. (All of the handling and cost associated with the distributor and the retailer are now all gone.)The representatives take a slice of action in the form of a commission. The commissions are lucrative because rather than sharing the profits of the business with the distributor and retailer, the manufacturer can compensate the sales force nicely.

This Direct to Consumer Selling is the future I believe. At the rapid pace of consumer purchasing behaviors to online like Amazon or Alibaba with direct shipment to your home, the manufactures selling through distribution then to retail are going to suffer some major losses. I fear for those working behind the counter; they'll lose their job sooner or later.

The business we have fortunately, is a direct selling model. This model is the future of selling. I care for my clients from my laptop anywhere/anyplace, the manufacturer I represent compensates me and delivers the products, the manufacturer provides me with all the marketing material and training I need. They even have customer support for my clients. I never have to carry any inventory because the manufacturer ships it for me.

If you're interested in learning more about joining me in this futuristic business model please message me here on LinkedIn or at [email protected].

Bonus I get in addition to my commissions is I now get to enjoy my family way more than ever!

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