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re: Why are distributors needed?
Posted on 7/4/18 at 7:28 pm to Columbia
Posted on 7/4/18 at 7:28 pm to Columbia
My company setup distributor model bc they didn't want to deal with every mom and pop for collections and credit approval.
Additionally my guess is we wanted to be able to stuff channel if sales weren't looking good.
Auditors are on to that game now.
Additionally my guess is we wanted to be able to stuff channel if sales weren't looking good.
Auditors are on to that game now.
0
Posted on 7/4/18 at 8:01 pm to Columbia
They’re only needed for older models. Today’s engines have electronic timing.
Posted on 7/4/18 at 8:35 pm to Sao
quote:
Generally, a case rep from, say, Stryker and Tornier are in the OR during each surgery their joint is being implanted. Have 2 friends in Houston that both sell the implants, advise the surgeons and assist during the procedure. These 2 don't have anyone between them, the company and surgeons. Average about 350k each
The companies large enough to supply their own distribution and have thier own distribution chain don't need a distributor.
Those that manufacture the product but don't have the means to ship in bulk nationwide use a distributor for this.
Pretty simple. What am i missing?
Posted on 7/4/18 at 8:38 pm to Columbia
The difference in pay between a liquor sales rep and a medical device rep is astronomical
Liquor reps don’t make anywhere close to 100k and a decent medical device rep clears over 200k
Liquor reps don’t make anywhere close to 100k and a decent medical device rep clears over 200k
Posted on 7/4/18 at 8:38 pm to Columbia
quote:
It’s unbelievable that these people are able to sit back and collect large amounts of money without much effort. Good for them I guess
Not much effort?
I can promise you their job is way more stressful than yours most likely and those that don't put in the effort don't make it long. It's incredibly competitive.
Posted on 7/4/18 at 9:00 pm to Columbia
In the hardware business it is easier to pay a buying group once a month instead of every mfg we carry. They warehouse the product and ship it. When I started out orgill basically financed my first store for me.
Example Some hardware stores use Ace buying groups while others use orgill, handy, or Truevalue.
Building material wise I deal with 15 vendors from lumber, millwork, roofing products, metal, concrete products, and weatherization products.
Then outdoor power equipment some vendors I buy direct while others I buy from a distributor. This group alone I deal with 12 vendors including parts.
Imagine how many more vendors I would have to deal with in a category. Then I would have to take on a higher amount in inventory to fill an order. A category like parts let’s say I run out of starters for a kohler engine. I use distributors where I can order that one part to take care of the customer. If I had to deal directly with Kohler then it could take 3 months before I went through enough parts to place an order.
Example Some hardware stores use Ace buying groups while others use orgill, handy, or Truevalue.
Building material wise I deal with 15 vendors from lumber, millwork, roofing products, metal, concrete products, and weatherization products.
Then outdoor power equipment some vendors I buy direct while others I buy from a distributor. This group alone I deal with 12 vendors including parts.
Imagine how many more vendors I would have to deal with in a category. Then I would have to take on a higher amount in inventory to fill an order. A category like parts let’s say I run out of starters for a kohler engine. I use distributors where I can order that one part to take care of the customer. If I had to deal directly with Kohler then it could take 3 months before I went through enough parts to place an order.
Posted on 7/4/18 at 9:02 pm to go_tigres
In all honesty, we carry close to 3000 brands and 60000 products. It would be a real mf’er for our clientele to shop for all of that. But I do see your point.
Posted on 7/4/18 at 9:03 pm to Peazey
I’ve been in medical distribution for 15 yrs. Like some said it’s a financial issue and a convenience issue. Even in the liquor business. Most manufacturers don’t want to deal with thousands of small accounts and fight to get paid. We pay the manufacturer in 10 days, we get paid in 45-60 days. We carry products from 500 manufacturers.
We are also cheaper, then when the customer buys direct from the manufacturer, strictly because of volume. We buy $200,000 they buy $2,000.
You really wouldn’t realize that much savings because the manufacturer would have to employ people to do everything we do.
We are also cheaper, then when the customer buys direct from the manufacturer, strictly because of volume. We buy $200,000 they buy $2,000.
You really wouldn’t realize that much savings because the manufacturer would have to employ people to do everything we do.
Posted on 7/4/18 at 9:17 pm to Columbia
I work for a pet product manufacturer. The amount of distributors has drastically decreased in the past 10 years. Most of it is due to consolidation, big box stores (PetSmart and Petco) and online sales such as Amazon that we sell direct to. Good distributors are still valuable for us because they go into the independent stores and detail shelves, etc. But the good ones seem to get bought up pretty quickly.
Posted on 7/4/18 at 9:19 pm to Columbia
Dammit
Thought I was going to learn something about engines.
Thought I was going to learn something about engines.
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