Tips to Choosing the Right Distribution Channel

This New York Enterprise Report piece describes why choosing the right distributor is crucial for your business. Your product’s desired distribution patterns, the nature of the proudct, and available resources all need to be considered when selecting one or more distribution channels. Direct sales can lead to the greatest revenue realization, but is also the most costly and resource intensive. Selling through distributors can place a product into new geographies and customer segments, but at a lower gross margin per unit. Selling your product through Original Equipment Manufacturers (OEM’s) can be a valuable source of steady sales, but at lower gross margin than the other two options.