Distributors

[AffiliateDreamer]

Hi,

What is a distributor?

It seems there are varying types of distributors, I run into some manufactures that have a list of distributors to contact. These distributors for some mfg end up being just retail stores.

When I hear the word distributor, I think of a business that stocks products for various companies. They basically wholesale the products.

Can someone clear things up?

[fiu88]

Some are actual w/d's , others are just there for whatever reason.. If you're being pushed to deal with them instead of factory direct..it may be beneficial...just find the right one who has a " I'll take an extra 100k in sales at a lower margin" attitude...You prob. should contact all of them to see whowants to play ball...
Volume and relationships usually dictate who ends up in the " Buy Our Products Online" section of a mfg's website

[Easy_Coder]

In the IT arena the channel flows like this in many cases:
Manufacturer > Distributor > Reseller > End User

That might translate to:
IBM > TechData > Joe Custom Systems > XYZ County School System

[ispy]

Many retail stores these days can sell more quantity then the distributors do. They may not have the overhead involved in maintaining a warehouse and the expense of stocking items. They can offer low prices. This means they make less profit, but so what, the manufacturer is still selling more items at their usual price on their end.

What can a manufacturer do in these cases but to call the retailer a distributor? The definition of a distributor is mainly the ability to purchase items in bulk at a reduced cost. Old fashioned distributors end up buying large stock initially, then to save money down the road just purchase one at a time as orders come in as needed. So it ends up making no real financial difference to the manufacturer if they have to ship small quantities of items per shipment for a retailer.