2018. It’s a new year, full of new goals, complete with a clean slate to create that winning packaging process. This is the time when you need a solid, experienced packaging distributor that can help you reach those goals.
And while working with a packaging distributor may seem daunting, it’s actually a process that comes with many benefits. There are some bad ones out there, no doubt. But a good one will listen, help you define your goals, and help you reach them all while providing benefits that you can’t usually get your own.
A distributor is, by definition, an entity that
- buys noncompeting products or product lines
- warehouses them, and
- resells them to retailers or directly to the end users or customers.
- Provides strong manpower and cash support to the supplier or manufacturer’s promotional efforts.
- Provide a range of services (such as product information, estimates, technical support, after-sales services, credit) to their customers.
I don’t know about you, but just the fact that a distributor will buy, warehouse, and then provide customer support is enough to sell me using a distributor. What are your thoughts?
What about the manufacturer? How do they operate that is different?
- Require large order quantities
- Possibly offer a cheaper price
Be aware – although you may gain that price decrease, what are you paying for on your end? Remember, you’re buying more product, so, therefore, you’re going to need:
- Increased warehouse space to house the product
- Increase shipping costs
- Employees to monitor the inventory
- Possibility of slow-moving product holding up cash flow
So then, is the possibility of a lower price via a manufacturer the best lane for your company to take? Let’s look at the other side of things, and see what happens when you use a distributor.
Benefits of Partnering with a Distributor
As we noted in the definition above, a distributor provides so much more than a good price to offer to potential customers.
- Distributor-only provided product discounts
Distributors are out to gain customers and KEEP their customers. They want that repeat business, therefore, they are more apt to be willing to provide volume-based discounts that the manufacturer may not be interested in providing. Think of it this way: added buying power in your hands.
- Product Availability
Distributors buy and house product for resale. The beautiful thing about this process is that because distributors are driven by your business, they will oftentimes provide product stocking programs. This means specific products are ordered, stored, and shipped at the customer’s request. For the customer, this equates to added warehouse space, fewer employees needed to monitor the stock, less cash flow tied up in slow-moving stock, and on-time deliveries. A major WIN for customers.
- Technical Training
Is a capital expense such as new equipment or machines in the future for this year? Will there be training involved? In addition to housing your product, a distributor is also a great resource for assistance with training, tools, repairs, and services.
- Multiple Locations
Does your company operate out of multiple locations? Would it help if your product could ship out of a location closer to you? Many distributors have multiple locations for that specific reason. Lower shipping costs and turnaround time is important to customers.
- Diverse Product Range
How many different manufacturers would you need to buy from if you ordered each of your products directly? How much would it save you if you could order all of those products from one single supplier, and have them shipped to you as you need them? This is what distributors provide.
Distributor – Extension of your business
Most importantly, a distributor aims to become your partner. Someone that they can come to with questions, requests, and ideas. They are in a word, your “partner.”
- Personalized Account Assistance
Personalized account assistance is the golden key for many distributors. With personalized account assistance, you begin to focus your efforts elsewhere. With personalized account assistance, you now have someone on the inside doing the battling for you. Your distributor holds the keys to retrieve quotes, provide product feedback, compile best practices, and provide onsite training. Beyond all of that, you now have someone on the backend who takes the time to manage your purchases: including processing P/Os, reporting, inventory check-ins, locating and securing product.
- Range of Knowledge
Because distributors normally carry a plethora of product, they are trained and experienced in what does and does not work. They are informed of new products to hit the market. Vendors ensure that their distributors have the necessary information to sell their products effectively. For that reason, they are trained by the best of the best in each field. Many of which, have been in the field for several years, and are able to offer those “real world, tried-and-true results” everyone wants.
Utilizing a packaging distributor is a smart move for many companies today. The key is to find a packaging distributor that understands your needs, partners with you on your goals, and is truly out to be a packaging partner.
Looking to partner with a distributor in 2018? Give Axis Packaging a call today at email@example.com.