It doesn’t really matter how big or small your company is, you need to have a successful distribution strategy.
Your distribution channel is the way that you deliver your products and services to your customers.
Having a well thought out distribution strategy means that you can get your products and services to your customers as efficiently as possible. A solid distribution strategy covers many different factors, but here are some specific tips that can help you develop a good distribution strategy for your company.
Tip 1: Your Distribution Strategy Should Consider Your Business Model
The first thing you have to consider when you’re setting up your distribution strategy is your business model.
Your business model greatly affects your marketing strategy. Who’s your target audience? What kind of products do you sell? What is the distribution plan of your competitors? Are your products fragile? Do you manufacture your own products? Where’s your company located? Where are your customers located?
All these questions have to be carefully considered before you can set up a strong distribution strategy. Your business model should be carefully considered first, so that you can have the right frame of mind regarding your distribution strategies.
Tip 2: Know Your Potential Distribution Partners
Whenever you’re setting up your distribution strategy, you’ll want to think about possible distribution partners. Through careful research, you’ll be able to locate the individuals and companies who can help you distribute your goods and services to your customers.
A great place to start is by carefully looking at the distribution partners of your top competitors. Who are they using to distribute their products? What companies and individuals are they using to help move their products and services across the country efficiently?
By carefully selecting your distribution partners you can be sure that your distribution channels are free from that common problems that occur when you have poor distribution partners.
Tip 3: Your Price Point Affects Your Distribution Strategy
Probably the largest factor that affects your distribution strategy is your product price point.
How you price your product and how your customers pay for your product has a big impact on your distribution costs. If your product is expensive to ship it will greatly affect how you deal with your distribution partners. Is your product fragile? You may have to plan for a certain amount of breakage which could drive your price point up. Your price point will greatly affect your distribution strategy because your price point is often directly tied to your distribution costs.
Tip 4: Logistics Must Be Considered When Outlining Your Distribution Strategy
There are many different critical logistics that you have to consider when you’re distributing your products and services. Certain things, like the distance from your customers to your warehouse, or the types of products and services you sell, are critical logistics that must be outlined. Make a list of critical logistics that affect the delivery and quality of your products and make sure that you factor these things in to your overall distribution strategy.
Tip 5: Know Who Is In Control And What Efficiency Metrics Are Being Gathered
In order to maintain a good distribution strategy, you need to know who is in control. Who is responsible for accurately measuring the efficiency of your distribution channels? Who is responsible for making sure that your products and services are being delivered to your customers as carefully as possible so that quality is not compromised?
By making sure you know who is in control, and what metrics they are using to measure efficiency, you can be sure that your product distribution strategy is consistently improving.
A Strong Distribution Strategy Comes From Careful Planning
By carefully considering these five tips, you can be sure that your distribution strategy is strong, and that your products and services are reaching your customers as quickly as possible, while maintaining the highest quality and efficiency.
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