As a new business, it’s quite difficult to get your products to the end-user. Several companies struggled with the concept of distribution. Most successful corporations out there have the means of capital to mass distribute their products.
For newcomers, it might be a challenge to distribute your products to the desired target market, but there are actually ways to do this. Below are Get Dairy Dealerships’ best ways to distribute your products as a rookie business person.
Know the types of distributions
There are at least two types of distribution methods to start delivering your products to the customers:
Direct distribution is selling your products to the customer directly. You don’t need a retailer or a third-party distributor to do this. While this may seem like a tremendously difficult task five decades ago, with the internet, this is actually quite possible.
Some companies use the internet and digital marketing to distribute their products and services. The advantages of using this method of distribution are:
- It decreases the cost of marketing since you won’t be paying or sharing a percentage of your business to third-party distributors.
- You’ll get to learn how to be a distributor which is a useful skill in the world of business as a whole.
- You get feedback from customers directly and improve on your products by establishing customer relationships.
It’s still quite a challenging task to do all the distribution by yourself, but with a great marketing lead and a website, you can certainly make use of the tools you have to start selling your products.
Indirect distribution is exactly what the name implies: Not directly distributing your products. Instead, you use third-party distributors who are also known as distribution channels to help you with the selling of your products.
There are two types of channels. These are:
Wholesale distribution is a type of indirect distribution wherein channels buy bulks of your products to resell to retailers.
Unlike wholesalers where they still need to go through a distribution phase in selling to box retailers, the retailers themselves sell the bought out products from wholesalers to the end-users.
This is the method of merchandising wherein stores buy specific product lines to put in their stores. If you have been to a grocery store or supermarket, chances are, you’ve already gone to a retailer before.
Which distribution channel should you choose?
As a new business owner, it entirely depends on what type of products you are selling. Many factors dictate what type of distribution process you should employ.
If you’re in the food industry, it’s best to hire distributors to sell your products for you. The reason for this is the shelf life of your products. Food is a perishable product that spoils in a particular period.