Categories
Business motivation

Distribution Business Model: Know Which Model Is the Best Fit For Your Business

The fact has been established that distribution business is an extremely profitable affair given you have the perfect strategy chalked out to help reach you the perfect customer to promote and accelerate your business.

Now that the profitability has been identified, many entrepreneurs have started this business generating tough competition. The only thing that will make you and your business stand out is the way you conduct your business. Now, how do you make your business stand out? The answer is to bring to existence that one perfect business model to grow your business for good.

What Exactly Is a Distribution Model?

A distribution model is nothing but an intelligently figured out way to make the goods and services reach from manufactured to the end consumers in the best possible and efficient manner. 

The primary purpose of a sales distribution model is to deliver these prepared goods from the manufactures to the target customer base in the most cost-effective way.

A distribution model includes many factors such as logistics, transportation, warehousing, storage, channel management, and inventory management.

What Are The Various Kinds of Sales Distribution Models?

Broadly there are three types of sales distribution models designed such as Intensive or mass distribution, selective distribution, and Exclusive distribution.

Mass/Intensive Distribution Model

This is the sales distribution model where the goods and services are designed to cater to a broader market or goods are produced for a very big number of people to consume. 

Try to understand it this way, if there is a business giant who produces its goods and services on a very large scale can not cover the entire geography to make its products accessible to each and every potential customer. 

Nestlé is producing its products which are consumed on a very large scale, it will need this mass distribution model to get associated with many intermediaries to make things happen.

Selective distribution Model

This is the kind of sales model where a manufacturer designs a plan to provide their goods or services to a select few clients or minted number of retailers. 

Selective distribution models can give an impression that the limited number of clients could hamper the growth and survival of a business, however, dealing with a select few clients also come with a lot of advantages such as the control of distribution chains and training your distributors. To state an example, if there is a manufacturer that makes crackers and deals in pyrotechnics, it will have a limited number of clients or resources.

Exclusive Distribution Model

This is the kind of sales distribution model that is adopted by a select few organizations. In this type of distribution model, the manufacturer of a product or service chooses to associate with one distributor or one type of distributor. 

One of the benefits that come with this model is that the manufacturer or producer has the upper hand or greater control when it comes to distribution. The best example would be Rolex Watches or iPhones.

You will struggle to make your business a success if you don’t build and operate your business on an existing model that suits your business. Now, with a clear picture of all these sales distribution models in front of you, try to do some research to figure out what is that one model that will help you scale more in less time. 

Categories
Business motivation

Food And Everything Wholesale: Everything You Need To Take Care Of Before Starting A Wholesale Food Company

We Indians love to eat and no economic or fiscal crisis could stop us from spending on food. Realizing the love of Indians for food, many businesses are getting into the food industry, to be specific to a wholesale food company. From chocolate and candies to condiments and confectionery, food items are always in demand and are provided by manufacturers only in bulk. 

Many small businesses are finding it a perfect time to enter this industry and sell their amazing handmade local products as the entire nation is standing in solidarity to support the Make In India campaign. With a brilliant thought process, strategy, and execution, you too can try your luck.

Find What You Want To Sell And Profile The Target Audience

Before starting any business, it goes without saying that you need to find what is it that you are going to sell. Whatever you decide on should strike a balance between what you like doing and what would fill a gap in the market. In the wholesale food business, you need to figure out what it is that you want to sell. 

Whatever you select that should be easy to make in large quantities without it altering the unique flavor. Also, pick your consumers carefully. See who will be happy to utilize these products. For example, if you sell pizza dough, you need to get in touch with all pizzerias around and see who can end up being your potential customer.

Get Permit/Licence & A Storage Facility

It is very important to take care of all the legal requirements before starting your wholesale business, it becomes even more important if that wholesale business revolves around food. The laws, rules, and regulations vary from area to area, hence do your research beforehand. 

Also, make sure you have a  place to stock up your product. In case, you are trying to build your product yourself, you need to rent a kitchen or a manufacturing facility carefully.

Keep The Policies Crystal Clear

It is of utmost importance to have a detailed conversation with your retailers regarding all the policies that revolve around your business relationship with them. You are supposed to be very clear about the minimum ordering amount, and the payment terms. Also, don’t forget to check if the retailer of your choice has a resale license or not to steer clear of troubles later on.

Get Retailers On Board

What good is a business that fails to attract customers? Ask Yourself the question and buckle up to find your business some great local retailers. It will be a bit hard at first but once you start networking and meeting different retailers, you can hand out some samples and let them know the USP and how that particular product will attract the customer. Solely but steadily, you will start to see results in the form of a solid customer base.

Individuals over the globe love to eat and drink making the food and beverage industry develop a lot. Keep in mind the above-mentioned points and get on your toes to encash the opportunity and become a merchant for prepared to-eat snacks, FMCG items, natural food, juices, sodas, and whatnot.

Categories
Business motivation

Wholesale Distribution: The Most Lucrative And Convenient Business In Town

We understand that India being an overpopulated country has given birth to a lot of problems, but we can not deny the business opportunities it has produced which can be seen as a silver lining. With a customer base as huge as this, there are so many businesses that can be run, Distribution Business being one of those businesses. 

There is no shortage of goods and products being manufactured in India, it is just a matter of delivering these goods to the customers they are meant for. This is where the distribution business comes into play. It not only is lucrative but has a very high viability quotient.  Let’s walk through some of the very best distribution business ideas which will force you to think of it as a genuine option.

The Food Wholesale Business

Food is what? A basic necessity of life. We all can not survive without food, hence making it a very profitable domain to set your wholesale distribution business in. It is the kind of business that will never be affected by the dynamic nature of the economy. It is as evergreen as it gets. Just be wary of the fact that there is food that stands the test of time but there are also some things that are perishable. If you get into this, it is highly advisable to deliver food to the last mile as fresh as possible.

Electrical Appliances Wholesale Business

Why Electrical Appliances? The answer lies in our day by day increasing dependence on electrical appliances to help us complete the household chores. In today’s day and age, millennials are always looking for the latest models to help them meet their needs. So, if you are all stocked up with the latest models and are on top of your games regarding the after-sales service and customer care, chances are very high that your business will thrive with a high customer retention rate.

Wholesale Distribution Of Construction Work Raw Material

India being a developing country heading towards a brighter future at a very fast pace calls for the availability of supreme quality construction work raw materials so that the foundation that is being laid remains unaffected for years and years to come. With so much construction work happening these days, it is evident that the construction raw material distribution business is recession-proof. The fact that is the most encouraging is that the majority of the raw material is supplied by the distributors and not the retailers. 

Mineral Water Wholesale Business

Just like food, the constant supply of drinkable mineral water is one of the basic necessities of life. With so many offices, complexes, shops, and malls around, the demand for mineral water has never been this high. The success of this wholesale business lies in the highly localized demand of the product. If this is something that interests you, go for it because it will only reap in success and profits.

Before starting your own distribution business, analyze the market potential of the product of your interest and then all it takes is just a decent capital investment and a well thought out strategy to make the distribution wholesale business a success. 

Categories
Business motivation

Basics You Need To Know Before Starting A Wholesale Distribution Business

 When one thinks of building a career, the two broad categories that emerge are getting a good job or starting your own business. The ones who choose to part with the latter generally have the idea that starting a business just means owning a business or getting a franchise. Distributorship is something that often goes unnoticed or missed by these aspiring entrepreneurs.

Wholesale distributor business has been the kind of business that has survived the test of times and proved its mettle by its impressive run time and the profits it brings. If this is something that has caught your interest, then we have some basics for you to make up your mind if you want to set foot into this business.

What Is The Role A Sistributor Plays?

If you were asked as a kid who is a businessman, you would have answered. If you were asked what you mean by the manufacturer, you will give the answer right away. But about when you are asked about the distributors? Distributorship is seldom a topic of discussion when choosing a profession is the point of discussion. Distributors are the intermediate between a manufacturer and the target customer for which the manufacturer produces goods.

After a manufacturer builds goods and products in a plant, the biggest challenge that arises is how to make it reach the right customer considering it’s difficult for the manufacturer to cover the entire geography. This is where a distributor helps by buying those goods, stocking them, and selling them to retailers or customers directly.

What Is Meant By A Distribution Channel?

A distribution channel could be easily defined as a process or way with the help of which manufactured goods finally reach the consumer. A distributor sells the products by covering a big area increasing the efficiency of distribution and retailers. The channels could broadly be categorized into four parts such as

  • When manufactured goods directly reach the consumer
  • When manufactured goods are bought by a distributor and sold finally to the consumer
  • When manufactured goods are bought by a distributor, distributed to the retailer, and sold finally to the consumer
  • When  manufactured goods are bought by a distributor, taken over by a dealer, distributed to the retailer, and sold finally to the consumer

Mandatory And Basic Requirements

It’s good that now you have realized the goodness of the distribution business and want to try your hand at it, but first, you need to figure out how you can afford the basic requirements of becoming a distributor. When you talk of wholesaling business, you can only imagine the kind of space it requires to stock a huge number of goods.

Secondly, if you have figured out a warehouse for your business, you will need to take care of the transportation to distribute goods across the area that you have targeted to sell the goods and products. Depending on the scale of your business, you can see what level of transportation works the best for you.

Most importantly, you will have to take care of the licensing and permits to carry out this business. There are many factors that can affect the process such as the area you are targeting and the laws that are followed in that area.

Hence, if you decide on becoming an entrepreneur, you need to first familiarise yourself with the basics of this industry to figure out what works the best for you and what field do you find yourself most comfortable with. Once the dust settles down and the vision is crystal clear, there will be no looking back.

Categories
Business motivation

Distribution Business: The Business Trend That Has Been Winning The Hearts Of Budding Entrepreneurs Over The Years

Distribution business ideas or as many would call it wholesale business ideas, is one business trend that never lost its charm over the years and has continued to solidify its significance in the Indian market. All entrepreneurs who are trying to build a business from the scratch and have a budget that is a bit stretched could start this business without worrying about the overhead expense/costs that a manufacturer or a retailer has to bear. 

In this article, we will introduce our readers to 4 such business ideas where they just have to carefully strategize, execute, and plan along with keeping eye on the product demand and the capital.

Business That Involves Distribution Of Medical Equipments

The most important thing that this global pandemic of COVID-19 has taught us is that the healthcare system needs to be more organized and needs to be well equipped. Medical and healthcare equipment will always be needed by hospitals as well as patients. Hence, if you have good connections with a good supplier as well as a medical organization, this business will be a profitable affair for you.

Cosmetic And Personal Care Distribution Business

The majority of the population in India that is 65% is below the age of 35.  The millennials in our country, who are all very aware of the beauty and personal care regardless of their gender, have made this business this popular. If you are someone who has an interest in selling these kinds of products and know-how and where you can find your potential retailer, this is the best business to be in. Just remember to be associated with a supplier that only and only makes high-quality products.

Automobile Distribution Business

This has been a popular choice and is continuously growing as a market. We all as a nation are witnessing the development and can clearly see better connectivity in the form of roads in semi-urban and rural areas. With better connectivity, emerges the ease to have your own vehicle for communion. With the growing demand for vehicles, this business is topping the chart as one of the best distribution businesses. However, it will require you to put in a large capital.

Home Appliance Distribution Business

This distribution business has always been in demand and has always experienced good profits because home appliances are something that is now a very common thing to be seen in every household. With new models coming in every now and then, people tend to replace the old with the new and better ones. This cycle has proved to be extremely profitable for the people who are in this business. If this is something that excites you, go for it.

There are sure goods and services that are greatly sought after and one needs to distinguish that item and sell it remarkably. In case that the item wins the hearts of your customers, they will be prepared to follow through on an excellent price for it.