I. Managing Terminations & Non-Renewals for Deficient Dealer/Distributor Performance
A. Back to the Basics: What’s the Benefit of Selling Through Dealers and Distributors?
1. The Benefits of Indirect Sales Channels
a. Many manufacturers and suppliers frequently revisit what is the most efficient and profitable system to get their products in the hands of end users. Selling through a downstream channel-partner network is a popular and potentially profitable system that provides a variety of benefits:
a. Transfers control over your brand, but in exchange for a reduction in risk;
b. Permits revenue growth beyond what a direct sales channel can provide;
c. Potentially expands market share and penetration to reach end users in geographies that a direct sales channel may not have capacity to access;
d. Depresses overhead costs for the manufacturer/supplier and transfers those costs to the dealer/distributor.