Sales channels to reach your customers
Selling through retailers, wholesalers and other distributors
Selling through an intermediary may be a more cost-effective way of reaching your end-customers than selling to them directly.
If you are targeting business customers who prefer to deal with large suppliers, selling directly to them may not be a realistic option. Instead, you might aim to supply wholesalers who have existing relationships with those businesses.
If individual consumers buy low value quantities of your products, the best option might be to target retailers that sell similar products. Or you might choose to focus your efforts on a relatively small number of wholesalers who can in turn supply your products to many retailers.
Other distribution channels may also reach your end-customers. For example, technology suppliers often sell to resellers who can configure and install the technology to suit end-users’ particular needs.
Managing your distributors
You need distributors who will value your product. If they sell competing products, what will make them push yours?
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Think about how you set your prices. Distributors will be more enthusiastic if they can make a large profit – but setting too low a price will eat into your own margins.
Effective advertising and promotions can be vital. As well as marketing to the distributor, you can promote your products directly to end-customers. Distributors will be keener to stock and sell products that their customers are asking for.
The key terms of the supply relationship should be covered in a written contract. Key issues might include:
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how much stock the distributor will hold
what the distributor will do to promote your products
how quickly you can resupply and minimum order levels
whether the distributor has exclusive rights to your product (for example, in a particular territory)
what happens if either you or the distributor want to end the relationship
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Dos and Donts Warehouse reconfiguration
Home » Business Model » Dos and Donts Warehouse reconfiguration
January 25, 2017 Frank Bullock Business Model
Staying in a strict budget when rearranging a warehouse is not as easy as many might think. However, a reconfiguration might be necessary indeed, since the dynamics of production processes and products characteristics continuously change and develop. Also, expanding as a business requires more space for storing products, and a crowded warehouse might prevent further development of a business. However, if you want to optimise the available space in your current warehouse, we advise you to invest in heavy duty racking systems as you rethink the layout of your building. Below you can find a couple of other useful advices.
DO go for customised storage systems
Offering the ideal storage solution for businesses in a variety of domains, racking systems can prove themselves flexible options. Furthermore, many manufacturers provide for their clients design services so they meet the requirements of the existing layout. On customised storage systems depends how efficient a reconfiguration will be, and certain companies provide design services paired with sturdy and efficient racking systems. Storage designers can make sure no available space remains unused, while making sure safety and easy access requirements are met. As services of this kind are used in your warehouse reconfiguration process, it is easier to discern between a professional remodelling process and an insipid one. As professionals can take into account your products characteristics, and develop solutions for easier handling and storage, your employees become efficient as well, as they become able to follow a logical flow.
DONT use improper shelving systems
Depending on the products your company is manufacturing, make sure you order a proper solution in terms of racking systems. Companies in heavy industries can use heavy-duty storage systems, manufactured from sturdy materials, using complex manufacturing processes. For example, the previously mentioned heavy-duty racks use thick stainless steel frame, adjustable shelves, offering the possibility of storing loads up to 800 kilos per shelf. As the coordinates of your business change, so should your storage systems. Make sure you go for systems able to adapt to your businesss dynamics on long-term perspectives.
DO have in mind safety requirements
Although it might be tempting to add some extra height than your experts advice, make sure you take into account safety matters. As a structure grows in height, it also becomes more unstable and quickly becomes a threat to your employees security at work. Make sure you follow the guidelines established by manufacturers and designers, so all the safety requirements are preserved. In terms of installation, you should make sure you are working with a professional company that can guarantee for their work. Also, before pursuing further changes after having your racks installed, make sure you communicate with the company your intentions and follow their advice.
To sum up, make sure you work with a professional manufacturer in the field. They have the capacity of providing personalised design services, have all the relevant notions when it comes to safety requirements and always follow their advice. On the long run, an investment of this kind might enable further expansion of your business.
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