Business Question: Should I sell my products via a distributor or on my own company website?

Question

I know some businesses can make more profit selling directly from the company site as opposed to 3rd party distributers who would take their cut, but I haved noticed more prestigious bigger companies in my particular market sell via distributors or luxury stores and just use their sites as brochures with no pricing etc( I produce several luxury home products which sell above £1000 per item)

What are the advantages of this?

I am competing with bigger players that dwarf my small home based business so brand image is very important.

Thanks in Advance.

Answer 1

description of items would definately help!

as you may be aware selling via a 2nd and 3rd party cuts into your profits, also decreases your ability to plan around actual income.  give that there are only two ways to earn expantion money (cut costs or more sales over a shorter time) would you really hold youself back by settling with non-direct sales.

having said that waiting for that phone to ring is an irritation too.  I'll settle for the standard ebay tactic of simply lie - set-up your support centre that hypes the product (website and call centre), then the second sales department isolated from your base.  now your attempting to sell and hype - third option the distributer, who can undercut your more expensive reseller (you), then offer a price match as a result (all they'll see is two sellers trying to undercut - you get sales and so does your third party seller).

yet another option - set up a franchise package, to get better control over the business and as you charge for the franchise they'll work hard to keep you in dusiness - providing you an income or support.  this puts more money into the front end designs, paid by the franchise to help the franchise. most people who buy fanchise don't actually know what there doing, so expect lots of silly comments and for them to fall out of the business at a moments notice, removing your obligation and there cash.

hope my 101 training has helped.

Answer 2

You want to sell your products..That is what business does.

If a distributor wants to buy from you in bulk at a price that gives you both a profit, Why not.

You can sell retail on your website at the same time

You will make more profit per item on your site, but will not have big volume.

Think of a distributor as one of your salesman who needs to be paid to live as well.

Just don't let it be an "Exclusive" sales agreement