Advantage to pro shops, manufs, custs of using distributors

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RevZiLLa
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Advantage to pro shops, manufs, custs of using distributors

Post by RevZiLLa »

Can someone list the pros and cons of putting distributors in between ball manufacturers and pro shops in the distribution chain? Lets do this from the perspective of pro shops, manufacturers, and bowlers buying the balls.

Here is my uninformed guess

Pro Shops
Pros
  • One point of contact to deal with is easy
    Dists can access better quantity pricing and pass it on to shops...but do they
    Quick access to inventory without having to invest in a lot of it
    Margins constant for the shops in the area because they all deal with the same dist
Cons
  • A shop with enough volume can not access volume discounts from Manufs because of the Dist relationshp
    Dists opening up online storefronts and canibalizing pro sho sales
Manufacturers
Pros
  • Reduces costs of carrying inventory
    Reduces risk of carrying inventory on an unpopular ball
    Dists who get a great deal will be like free salesmen at the shop level
Cons
  • Margins lost to the middleman
    Lack of direct pesonal relaionship with the pro shops and drillers
Ultimate Consumers
Pros
  • Ability to get equipment that small shops would not carry
    Ability to get better prices from distribs with online stores than at the pro shop
Cons
  • ?
=======================================================
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Mo Pinel
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Re: Advantage to pro shops, manufs, custs of using distributors

Post by Mo Pinel »

RevZiLLa wrote:Can someone list the pros and cons of putting distributors in between ball manufacturers and pro shops in the distribution chain? Lets do this from the perspective of pro shops, manufacturers, and bowlers buying the balls.

Here is my uninformed guess

Pro Shops
Pros
  • One point of contact to deal with is easy
    Dists can access better quantity pricing and pass it on to shops...but do they
    Quick access to inventory without having to invest in a lot of it
    Margins constant for the shops in the area because they all deal with the same dist
Cons
  • A shop with enough volume can not access volume discounts from Manufs because of the Dist relationshp
    Dists opening up online storefronts and canibalizing pro sho sales
Manufacturers
Pros
  • Reduces costs of carrying inventory
    Reduces risk of carrying inventory on an unpopular ball
    Dists who get a great deal will be like free salesmen at the shop level
Cons
  • Margins lost to the middleman
    Lack of direct pesonal relaionship with the pro shops and drillers
Ultimate Consumers
Pros
  • Ability to get equipment that small shops would not carry
    Ability to get better prices from distribs with online stores than at the pro shop
Cons
  • ?
It's actually quite simple. Distributors are the pro shops inventory closet, usually one day service. Distributors carry credit. All at a cost.................
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1MechEng
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Re: Advantage to pro shops, manufs, custs of using distributors

Post by 1MechEng »

Cons of the distributor in the supply chain - for the consumer:
- Added cost (markup) when the ball passes on to the pro shop
- In theory, the added step of the distributor adds time and labor to the supply process (think about new releases, not necessarily existing product)

Dan
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