Distribution Channel benefits
In the early days of a company, using a distribution channel is regarded as an extra cost and a way to lose control over the sales process. However, the globalization implies the necessity of a distribution network.
Why distributors are good:
- They can handle the clients locally
- They have the best knowledge of their market
- They usually have a sales force that can handle sales requests as you would do it
- You can’t handle sales in 50 or so countries, but you can handle distributors in 50 countries
- Knowledge of the local financial/commercial/legal system
- They handle some of the sales costs
- Distributors will bring into the partnership their own value and market position
- Contracts with distributors will put you in a better position and a legally safer environment than handling each client separately
- You will take advantage of the commercial and logistic knowledge of the distributor
- A distributor will be able to offer a more flexible proposal to a local client
- International distribution networks will handle the clients in their local language
