Distribution of Products and Services

The various ways in which products and services can be distributed physically are numerous. Although, e-commerce has taken over, and digital marketing and distribution is now the norm, nevertheless, we still bend towards the traditional rules of the physical distribution of goods, products and services,

 First of all, middlemen are the firms or individuals that act as movers of products and services into the consumer market which can be subdivided into two main markets which are the retail and industrial markets. Middlemen are identified as agents, brokers, common merchants, distributors, wholesalers, suppliers and exporters, and also assemblers. Some of the markets include industrial buyers, the overseas market, the retail chain, and the government. Now, we would look at selling through wholesalers. 

More often than not, wholesalers may or may not specialize in related products. The distributor of metals and minerals does not store or distribute petroleum products. On the other hand, the distributor of dental supplies may also handle equipment for physicians, surgeons, veterinarians and optometrists.  It will be advantageous for the manufacturer if he engages the use of wholesalers for the distribution of his products. Normally, the wholesaler has a warehouse where he stores, assembles and grades goods in large lots, breaks bulk and redistributes in smaller lots. 

Wholesalers love showrooms to display products and point of purchase display together with a well trained sales force who keep maximum contact with not so easy to reach retailers. These salesmen know regional terrains and conditions, and also challenges of small retailers. The typical wholesaler has a system for giving credit to retailers on reasonable terms. He also has efficient storage, refrigeration, pick up and low cost delivery set up. 

There are also facilities put in place for handling complaints. He can also distribute fliers and catalogs, and other publicity materials to create a thorough awareness of his product. Finally, he can maintain repair and provide replacement service to supplement the retailers’ or the manufacturer’s service. Howerver, sometimes, using the wholesaler may be eliminated completely. 

There are advantages to a manufacturer when he deals directly with retailers instead of through wholesalers. He can maintain absolute control over a distribution and a larger profit can be realized. Secondly, a direct effort may be applied to expand the number of retail accounts, and closer ties with retailers can be forged and established. Eliminating the wholesaler from the picture does not always remove the cost of services the retailer or industrial buyer may expect. To deal directly may prove more costly than through a wholesaler. Each company, establishment or business must assess its own situation.