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Choosing
Sales And Distribution Channels
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Choosing sale and distribution channels becomes a hectic decision. It is difficult to sell your products to retail so you are selling your products to anybody that will buy them, which is not working either. |
Make the right choices from the very beginning. Group the sale channels and start with the companies that fit your size and that do not compete head-on with each other. Use the distribution channels actively to get contacts inside the sales channels. |
Choosing the right sales channels
Success grows on success. Big off-line retail chains have a tendency to deal with very few big vendors and/or distributors. If you are a small vendor, start by selecting the retail company that fits the size of your production and company. If you have a small business and you select a large retail chain you could risk the following:
Carefully select the retail chains that fit your size. Use the experience you get there and make the necessary corrections of your organization and/or products; and create bigger successes at bigger chains. Write down all the potential retail chains that you would like to sell to and divide them into groups in which each group does not compete head-on with the other groups. For example, you would put Best Buy and FRY’s Electronics in the same group, and Buy.com and Sharper Image in two other groups. Write down a few key points about the retail companies, such as:
Focus
on the groups of sale channels that understand your products (see
Category Management), which will tell you if they deal with your
kind of business. Look at the stores ranking and select the sale
channels within each group that does not compete head-on for your
first contact, giving them some exclusivity. Depending on the level
of difficulty getting acceptance from the sale channels, you can
then expand the companies to contact. This gives you experience
and control, which will insure your success. |
On-line stores vs. Off-line stores You will find it MUCH easier to get your product into On-line stores than Off-line stores. On-line
stores take close to all products since they have no shelf space
limitations. However, they require purchase of their “advertising” space.
The cost comes with the advertising, which can be very expensive. Choosing the right distribution channels Whether you are big or small, you should consider using distribution companies. They give services ranging from buying your products as a middleman, to just delivering the products from one place to another, often giving you good information about the different retail chains they deliver to. Figure out what your company should outsource then find the distributors who understand your product type. One of the good things about using a distributor is that they already have a connection to a range of sale channels. Your product becomes a part of their portfolio and disposed for their sale channel. You do not have to sell exclusively through one distributor; you can combine their sale channels with your own and other distributors. Distributors tend to focus on big companies and might find your company too small. The advantage of a big distributor is that they are everywhere. However, since they are so big, your product risks drowning in the ocean of products they already carry. Smaller distributors might give your product better attention, but the drawback is they distribute to fewer places and have less power. This area is in need of serious research and resolution. All
in all the distributors might be able to give you some key information
about their sale channels, including an introduction to the right
buyers; use this vigorously. Jens Welling |
The author of this article Jens Welling has worked with retail purchase, retail sales and retail marketing over the last 15+ years. Jens Welling has written a number of articles as a good source for any new and established company who want success with retail sales. Below are short descriptions and links to other articles. |
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Why You Have To Do Your Homework Choosing Sales And Distribution Channels Category Management Unique Selling Points (USP) Price Strategy What The Buyer Wants To Know Exit Strategy Price Setting |
Negotiation Tactics Rejection From Buyer Marketing Strategy Education Management Warranties Building A Brand Logistics Keeping Your Store Sales Alive Product Development |
