Advantages of selling through distributors
They are quick. Distributors also have the speed needed to get the products to markets. Due to the fact that distributors don’t want the products to congest their warehouse and thus, they are seeking markets fast. This can benefit the manufacturer as he is assured of the products quickly entering the markets. Distributors have the transportation needed to make supplies and their logistics arrangements are well suited for distribution to several markets.
They have wide customer base.All established distributors have good relations with existing customer base of retailers and this is the tool needed for their job. Their customer base is very wide. Established distributors can have access to over 100,000 retail outlets where they distribute products. Established distributors are known by many retailers and they can successfully distribute new and established products. If a manufacturer is starting out with a new product, established distributors can help get into many markets.
They understand the market better. Because of the long years of experience they have in the niche, distributors understand the market better than many manufacturers. While manufacturers are mainly concerned about the production and packaging, distributors know about the market, what makes a product widely accepted, and how to reach new markets overseas. They are skilled in marketing and experienced at sales. Distributors have had to deal with many retailers and they know the issues facing the business. Thus, they can tailor their presentation to allow for a profitable business for both the manufacturer and the retailer.
They are professionals in the sales and marketing niche.Distributors have to sell to many retailers within and outside the country. They are to look for new markets for products and are such required to be skilled in selling and the marketing of the goods to retailers. It can be very demanding for manufacturers to start pitching their products to retailers. Many manufacturers are not sellers; they are producers and should focus on that aspect of the job. Distributors know how to negotiate for concession from the manufacturer so as to give the retailer reduced prices.
They are motivated to do the job. Distributors are not agents who work for commission; they are players in the supply chain who sell the products as if they own them. Without selling the products, they lose money and the storage space is filled up. To make money and clear up storage space, distributors have to sell the goods as soon as possible.
They handle logistics.They oversee the movement and storage of goods on their own accounts. They have the trucks and the shipping facilities to ensure that delivery is made to retailers.
They have the required storage facilities. They receive products from several manufacturers and they deliver to a lot of retailers. This you can benefit from as a manufacturer as you can always get the distributors to take shipment of products as soon as they are fully produced. The manufacturer does not have to get more space to store product; the distributor is adequately equipped to do that.