Business Success: The One Key Element You Can’t Overlook

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Marketing plays a huge role in the success of a business. But it’s just one aspect of it. Another crucial part is getting your distribution right.

Distribution channels ensure that your products reach your consumers in time and in excellent condition. Various types of product distribution exist. Choosing the right system can dictate your sales and position in the market. If you opt for a franchise model, your distribution channels are likely to be wider in scope than if you were to start a business from scratch.

Why a Franchise?

With a franchise model, you’ll have access to a system that has proven reliable and effective for many years. You’re certain that products will reach the right consumers. In addition, if you were to choose the ideal product, you improve profitability, too.

For instance, Fully Promoted reveals that the promotional products franchise industry delivered $21 billion in revenue. It seems that there is a big demand for promotional items, from shirts and bags to office supplies and kitchen items.

What are the Types of Distribution?

With a franchise, you’re likely to get a combination of distribution strategies. Here are some of those:

Direct selling

Manufacturers directly sell their products to the clients and are usually done through their own shops or by selling online.

One-level channel

Instead of selling directly to the client, the manufacturer will opt the services of an intermediary usually known as a retailer. The retailer will then help the manufacturer sell their products widely to different clients.

Two-level channel

This involves two intermediaries in the form of a retailer and a wholesaler. For two-level distribution channels, the wholesaler buys goods from the manufacturer in bulk and sells it to the retailer. The retailer then sells it to the public.

Three-level channel

This type of distribution uses an agent along with the two previous intermediaries mentioned above. It’s the ideal option for penetrating the foreign market, which calls for the expertise of an agent in finding a wholesaler and a retailer to help distribute the product to the clients.

Whether you start a business from scratch or opt for a franchise model, never underestimate the value of distribution. With the right distribution channel, the right product, and the right system, your business could secure success.