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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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Tips to become a successful freight forwarder

Home » Business Model » Tips to become a successful freight forwarder
January 21, 2016 Frank Bullock Business Model
When you are an air freight forwarder, you work in a domain where you have great competition, and you have to do your best to become one of the bests in your area, and to grow your company’s income. The best way to do this is to become a trustful forwarder, and to collaborate with some companies that can recommend you to their partners. In this way, you will build a web of clients, and you have the chance to become one of the best air freight forwarders. Here are some tips that will help you grow your business and achieve your goals.

Run your business efficiently

You have to be sure that you have all the problems from your company solved as quickly as possible, because any little issue can transform into a big one, and might ruin all your work. An important aspect is to have a well-organized back office. You should know that the work in the back office depends on the size and type of business you own, so if you have a small business there might not be so much work to do if you manage to do it all at its time. You do not have to do this by yourself; you have to hire a little team that takes care to understand your company’s needs, and to run the office how you want. If you want to expand your business, then you should start thinking like a business owner. In addition, you have to know that many companies have cash flow problems, but you have to be sure that you can arrive at your destination even when your clients do not pay you in time. Usually in this domain, your customers will pay you in 40 to 60 days from the shipment, and you have to find a way to continue your activity and not to run out of money.

Join a freight network

Even if you work in the air forwarding domain you have the possibility to join an alliance and expand your company. When you are accepted as a member in this type of network, you can receive larger contracts, because you have the support of the other members. You can be confident that they will help you, because all the members of a network are selected according to some strict requirements. In this situation, you are able to fulfil your commitments, because you are backed by a global brand. Also, you will be able to save money because you will benefit from lower rates from insurers and carriers. You will promote your business by attaching the network logo to yours. This will make you more visible in the eyes of shippers, and will help them overcome the wrong perceptions that an independent forwarder is not able to provide quality services. This will have as a result the fact that you will receive more new contracts, and in this way, you have the opportunity to secure new business and to become a successful forwarder.

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