Four Reasons That a Distributor Business Could be Right for You

If you are looking for a new business opportunity, you might want to give serious consideration to a distributor business. Rather than buying products to sell directly to the general public, distributors generally act as an operator between manufacturers and other businesses, often retailers. There are some distributors who do sell directly to the public, but as a general rule distributorships are a business-to-business venture. Following are 4 reasons to consider a distributor business.

Distribution is lucrative.

Wholesale distributor sales are currently approximately $3.2 trillion in the United States. With several business models to choose from, there is plenty of opportunity to take advantage of the cycle of supply and demand. In addition, distribution is a beneficial service, allowing retailers and small businesses, who might not have the budget for large direct orders from manufacturers, to stock items in smaller quantities.

Space is cheap.
While distributorships perform many of the same business services as retailers, there is one major difference in overhead costs. While retailers pay a premium for storefront property, as a distributor you only need a safe place to store your merchandise. Since your main concern is shipping to other businesses, not selling to the public, that space does not have to be decorated and merchandised.

Choose your focus.
As a distributor, you have a wide range of choices as far as what to stock. You can cater to one industry or niche, or source products that cater to a broad range of retailers and businesses. Also, you are not relegated to a single geographic area. As long as you are able to make contact with your customer base and have cost-effective shipping methods in place, you can build a customer base as geographically diverse as you like.

Feed your passion.
Because so much of the distribution business is related to customer relations and people skills, you will naturally build a growing network of contacts. If those contacts happen to be in an industry that appeals to you, all the better! Distribution is an excellent opportunity for a hobbyist or enthusiast to be more involved in the industry they enjoy.

These are just a few of the many reasons that a distributor business might be right for you. If you have previous sales and networking experience, or your skills draw from a diverse career background, all the better! These are some of the qualities that will be put into use as the owner of a distribution company.

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