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| *Ostroff, Fair and Company>>>Other - Advertising & Marketing |
Why do manufacturer sell to retailer only? |
Why do manufacturer only sell to company that resells them? would they make more money if they sold em to everyone? because they sell to company say 5$ and the company sells it higher... any ideas Actually, some manufacturers do sell directly to users. However, retail sales is an operation all its own, and some manufacturers don't have the capacity to handle another operation. And it's easier to sell a bulk order of, say, 10,000 widgets to a retailer, than to sell 1 each to John, Mary, and 9,998 other people. But with the growth of the Internet, I think you'll find more manufacturers selling directly to customers, via a Website. Because then basically they'd have to set up a whole dept or subsidiary that handles private customer sales, including lots of customer service reps. It's a lot of added cost. Besides, for the most part, people go to stores to buy stuff because it's convenient. It's hard to compete with that. Yo David The main reasonings behind this is --- to sell most products to the consumer -- is a one time sell --- selling to absolutely thousands of individuals ---- BUT -- to sell to the retailer -- they sell thousands of products to THIS entity over and over and over again with a supply-line connect that is automatic in nature and sells that don't have to be "pursued" through the expense of mass advertisement etc. !! To sell to the individual -- this company would have to put all kinds of utilities into place to facilitate this --- sells personnel, showrooms or "stores" that have overhead and expenses -- then there would be the advertising to bring the individual TO THEM --- and in a lot of cases -- the products that they produce could not possibly have the numbers OF SALES in any one location -- so they would have the burden of multiple locations ect ect ect !!! Some manufacturers do sell retail. The fastest way to get your product to market is through established retailers who sell similar or complementary products. It builds cash flow very quickly. It is also more expensive to advertise and develop business to the end user than it is to retailers. So, lower overhead and faster cash are the best reasons. |
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