Wednesday, November 17, 2010

Distribution, Trucking

I don't remember where I first heard it, but I adopted the slogan as my own...

"You can eliminate the distributor, but you can't eliminate the cost of distribution."

Meaning, there is a cost to getting a product from manufacturer to consumer...

Most products are sold by distributors. They purchase from a few or a few thousand different manufacturers, and they sell those products to hundreds or thousands of different accounts.

We sell our products to about 25 different distributors in the natural, specialty, pet food and retailer buying group "channels." Our goal in working with these distributors, is for them, and their customers, to purchase and sell our products to consumers.

We also work with one - count 'em, one - buying club...though we hope to do more business with buying clubs in the future.

Distributors as a necessary evil. We couldn't possibly sell all of our products to every retail account directly...and there is a cost involved in creating those sales. We do our best to try and minimize those costs to keep our products priced competitively.

We are rolling out some new products....more on that next time

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