When it comes to our articles that try to cut costs in business, they’re… think lion sized, which allows us to cover as much of the subject as possible. Well this one is… think squirrel sized, as it’s less of an in-depth summary, and more of an advisory on general behaviour for these changing times.
Manufacturers have a hard enough time creating a quality product for consumers so surely it should be easy to at least sell it? Well for long enough, intermediaries claim to make the process hassle free and open to a larger audience; that’s all well and good until they take a jackhammer to your profit margins. Many of the issues these agents claim to fix aren’t actually that difficult to overcome alone. For the very best advice on this subject we spoke to Joel from AsOne:
“We have seen an increase in manufacturers selling direct. Rather than selling their goods in bulk to middle men they can sell directly if they are willing to sell in smaller quantities. Usually they have the warehouse space and shipping connections already. For a relatively low investment they can sell directly at retail prices so their margins are massive.”
It turns out that only 45% of manufacturers actually sell direct to consumers, with fears again of the complexities but also how the channels for consumers and businesses can become convoluted. To be honest, I think this worry is ageing very quickly, as with every given day, these channels are fading away thanks to ever-savvy buyers, so why not adapt?
Just think, you as a business could have complete control over the customer experience, choose your own hierarchy of products, provide better expertise and knowledge with your products, and have the ability to now ship in whatever quantities you feel like. All of these things help you and your consumer. Win win!
Articles and advice like this would be impossible without the expertise of people like Joel; with nearly twenty years experience helping businesses of all sizes, AsOne are an invaluable partner for growth in business, specialising in development, marketing and most things digital.