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Started By
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Why are distributors needed?
Posted on 7/4/18 at 6:19 pm
Posted on 7/4/18 at 6:19 pm
I work in an operating room where implants are often used for total joints, fractures, spines, titties etc. The majority of these cases have a sales rep come in. Between the company and the sales rep, is the dude that never shows up, in fact, really doesn’t do shite in my eyes but make money. This happens in all sorts of industries. So, educate me. Why does this job exist other than driving up prices for the consumer?
13
Posted on 7/4/18 at 6:19 pm to Columbia
Liability
Posted on 7/4/18 at 6:21 pm to Columbia
To keep prices up.
Posted on 7/4/18 at 6:25 pm to Columbia
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
This post was edited on 7/4/18 at 6:26 pm
Posted on 7/4/18 at 6:28 pm to Columbia
Insurance and liability.
Posted on 7/4/18 at 6:30 pm to Columbia
Mainly for inventory and stocking purposes. The manufacturers generally don’t want to deal with the end users. There are too many and it’s too difficult.
They would rather sell to a small number of distributors and then let them sell to the general public.
They would rather sell to a small number of distributors and then let them sell to the general public.
Posted on 7/4/18 at 6:40 pm to Columbia
Terms and conditions
Posted on 7/4/18 at 6:48 pm to Columbia
Bruh, sssshhhh, I work for a 22 billion dollar company with half coming from distributing
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.
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 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 9:17 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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