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Question on distributors/distribution

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  • 17-10-2013 6:36pm
    #1
    y0ssar1an22
    Registered Users Posts: 17,062 ✭✭✭✭


    I know this is probably a pretty simple topic but I cant seem to find a simple answer...

    Do distributors buy products off you and go and sell them to whoever they like?

    or

    Do they simply store your product and delivery to wherever you tell them to, once you secure a sale?

    Thanks


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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    Would depend on the agreement between the distributor and the manufacturer some have total control and some have very little from my dealings with them.


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    #3
    lucky john
    Registered Users Posts: 838 ✭✭✭lucky john


    y0ssar1an22 wrote: »
    I know this is probably a pretty simple topic but I cant seem to find a simple answer...

    Do distributors buy products off you and go and sell them to whoever they like?

    or

    Do they simply store your product and delivery to wherever you tell them to, once you secure a sale?

    Thanks

    While there is some cross over, most distributors are in choice A. They give you a margin on your product and then sell it on to retailers who pay them a margin. The advantage of distributers is they will buy from you in volume. The disadvantage is you need to allow for their margin in your pricing.

    Choice B is more a fulfillment type company. They will hold your stock and dispatch it for you to your customers.


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