This forum is for topics related to pro shop operation and bowling center maintenance.
Usual topics include: shop gear, fitting, drilling and lane maintenance.
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
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.................
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)