What you actually do.
WHAT DISTRIBUTION IS
Buying in volume from manufacturers or importers and selling in smaller quantities to businesses that resell.
WHAT VALUE IT ADDS
Breaking bulk Holding stock so retailers need not Reaching many small buyers a manufacturer cannot serve Extending credit Providing local availability
WHY THAT LIST MATTERS
It is what justifies your margin, and any of it you stop doing weakens your position.
WHAT FORMS EXIST
Exclusive distribution for a brand in a territory Non-exclusive wholesale across many brands Sub-distribution under a larger distributor Cash-and-carry, where buyers collect Van sales, delivering and selling from a vehicle
WHAT DETERMINES PROFITABILITY
Margin per unit, which is thin Volume Stock turnover Credit losses Distribution cost per delivery
WHY MARGINS ARE THIN
You sit between a manufacturer and a retailer, both of whom want more.
WHAT THAT IMPLIES
Volume and cost control matter more than in most businesses, and small errors in credit or stock wipe out the margin on many sales.
WHAT MOST DISTRIBUTORS DO NOT KNOW
Cost to serve each customer.
WHAT TO ESTABLISH FIRST
Margin after delivery and credit cost, by customer.
