Process: How We Work
Selling Your Product: Direct vs. Distributor
There are many benefits for using a nationwide network of distributors. Some advantages are as follows:
- Retailers can buy your products from distributors whom they are already purchasing from on a regular basis.
- Retailers want to deal with as few manufacturers as possible. They prefer to purchase from distributors (especially for new products and non-established lines).
- You are only dealing with a handful of established large distributors for accounts receivable as opposed to accepting credit cards, COD or extending terms to numerous smaller accounts (12,000+ natural products retailers versus a dozen distributors!).
- You have larger cost effective shipments to a handful of distributors, rather than too many individual stores.
- Stores are able to purchase small quantities of your product with their regular distributor order. They generally will not order a few pieces direct in order to replace depleted stock.
- Retailers will consider taking on a new product from a distributor as opposed to direct because they do not feel it is too much labor to keep up with inventory.
Where We Come In:
Creative Innovations has the expertise and relationships in obtaining product placement with distributors for optimum sales potential. We can also help you evaluate the cost of goods and the current price structure to accommodate distributor pricing.
The result: You achieve the largest sales benefits possible by using the distributor network and reduce the timeframe for nationwide distribution to 6 months to 1 year.
However, it is difficult to obtain a nationwide network of distributors:
- The nationwide distributor network has consolidated considerably and the few large distributors left are very selective in which products they take in.
- Distributors no longer take on new products based on the efficacy or merit of the product’s potential alone.
- Distributors do not actively sell your product. Therefore, they require that you have an active outside sales broker network or direct sales rep in place, as well as marketing and advertising, before they will pick up a new line.
- It can take from 6 months to 3 years for you to get your product presented and accepted for distribution.
Hiring someone who has long-term relationships with distributors increases your chances of having your product accepted for distribution.
