Distribution Is The Key
Read More Great Business Opportunity Articles
Read More Great Business Opportunity Articles
Distribution Is The Key
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Therefore as you or your friend proceeds through the decision making process be certain all the distribution issues are covered.
Who are the key buyers and will they remain the key buyers? The Internet has put many intermediaries out of business or drastically reduced their importance. Stock brokers and travel agents are almost unnecessary, will real estate agents be next to fall? Anybody buying a business or designing a product or service that serves or depends on intermediaries may have a limited future.
Suppose you are considering buying a business or developing a product that serves the auto industry. The typical approach to reaching these customers was through manufacturers’ representatives. With the pressure to reduce costs steadily increasing what’s the first cost the buyers in the auto industry look to cut? The commission paid to the reps.
If you are counting on reps to build your business you better figure another way to go.
If you own a manufacturer’s representative business, your future may be dim.
But wait, I said distribution was key … is it? Yes!
How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.
Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.
I think distribution is fertile ground. Those in it now may not be able to see the opportunities on the flip side and they may be willing to sell all or a part of what they have for less than you can make it worth.
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Therefore as you or your friend proceeds through the decision making process be certain all the distribution issues are covered.
Who are the key buyers and will they remain the key buyers? The Internet has put many intermediaries out of business or drastically reduced their importance. Stock brokers and travel agents are almost unnecessary, will real estate agents be next to fall? Anybody buying a business or designing a product or service that serves or depends on intermediaries may have a limited future.
Suppose you are considering buying a business or developing a product that serves the auto industry. The typical approach to reaching these customers was through manufacturers’ representatives. With the pressure to reduce costs steadily increasing what’s the first cost the buyers in the auto industry look to cut? The commission paid to the reps.
If you are counting on reps to build your business you better figure another way to go.
If you own a manufacturer’s representative business, your future may be dim.
But wait, I said distribution was key … is it? Yes!
How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.
Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.
I think distribution is fertile ground. Those in it now may not be able to see the opportunities on the flip side and they may be willing to sell all or a part of what they have for less than you can make it worth.
Return to Page 1
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Art Consoli's unique background and skills allow him to speak and write about how someone with limited experience can do a self-evaluation which will let him decide which business opportunity is best, how to evaluate opportunities and gain control over the one which offers the greatest potential and then manage that business to success. Readers of his book call and write to tell him how much his book has helped their lives and improved their business. The author can be reached at www.businessstrategyartconsoli.com.
