Various trades especially the wholesale supplies are usually undertaken by the involvement of intermediaries, distributors and drop-shippers. These intermediaries play a significant role in developing contact between manufactures and buyers.
The involvement of these intermediaries addresses two facets with benefits on one side, while problems on the other.
Pros of maintaining direct contacts with manufacturers
If you are a buyer, then in various contexts it is benignant for you to maintain direct contacts with the manufacturers, without the involvement of intermediaries, distributors and drop-shippers. Following are some of the benefits that you may gain by giving vent to direct contacts with manufacturers.
- Fetching your needs
You may search various online directories for contacting the legit and authenticated manufacturers. By having direct contacts with the manufacturers, it is possible for you to place orders in allegiance with your requirements, without being distracted by the involvement of intercessors.
- Better negotiation
If you are a buyer of wholesale products, then contacting the actual manufacturers of required items is plausibly beneficial for you for having better negotiations. Intermediaries may not be in a condition to complement you in the negotiation process because of their own limitations. Nevertheless, the direct contacts with manufacturers provide a better apprehension of prices and allow you to secure better bargains.
- Cost Cutting
Businesses are always on the lookout for great finds. It is important for your business to cut the costs up to the maximum extent so that your financial statements may shoulder lesser encumbrances of expenditures. Intermediaries are on the quest of gaining margins by their involvement in the transactions. However, cost cutting may be addressed by you by directly approaching the manufacturers.
- Enhanced profits
The consequential impact of cost cuttings is an inevitable increase in profit figures. If you approach the manufacturers directly, then you may be able to buy cheaper wholesale products in contrast to your competitors. Secured margins from cheaper products may be transferred to the consumers by offering bait prices, with the ultimate effect of gaining a good market share.
Cons of maintaining direct contacts with manufacturers
Negative aspects of maintaining direct contacts with manufacturers also prevail. Following are some of the problems that you may encounter in this regard.
- Maintenance of logistics
Intermediaries are likely to shoulder the headache of maintaining the inbound or outbound logistics. Supply of goods is a critical matter which is needed to be handled by you if your business transacts directly with the manufacturers. Transportation of goods has its own implications which are needed to be abode by your business, in case you purchase directly from the manufacturer.
- Manufacturers fetching bulk purchases only
Manufacturers may have set the minimum limits for purchase quantities. Developing direct contact with manufacturers is unlikely to be viable for you if your business does not require good in accordance with the bulk purchase limits set by the manufacturers. In such an instance, distributors and intermediaries are of significant importance for fetching your business with the quantity of goods needed.
- Searching for legit manufacturers
If you wish to contact the manufacturers directly, then you also need to evaluate various manufacturers that suit your feasibility. Secondly, you may not be able to rely on the manufacturer for future business concerns.
So, contacting the manufacturers directly or otherwise involving the intermediaries, distributors and drop-shippers have their respective implications, with their respective impacts on businesses.