Home – New Forums Logistics To Distribute or Not…

  • This topic is empty.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #982751
    sansamad
    Member
    • Total posts: 122
    Up
    0
    ::

    Hi Everyone,

    Coffee time :) Yay!

    Possibly a naive silly question but….what is your experience of distributor’s buying percentage from manufacturers for consumer products??

    Is it 25%, 30%, 35%, 40%??

    Thank you for your feedback.

    Sandra :)

    #1138606
    Melanie Miller Biz Coach
    Member
    • Total posts: 90
    Up
    0
    ::

    Hi Sandra,

    That depends on a number of factors including things like who is responsible for marketing materials, will the distributor attend trade events, do they have sales agents etc..

    I have seen everything from 15% through to 50%!

    Completely not helpful as it doesn’t actually answer your question ;)

    Melanie
    Agent99 Business Coaching
    http://www.agent99hq.com.au

    #1138607
    sansamad
    Member
    • Total posts: 122
    Up
    0
    ::

    Hi Melanie,

    I am looking at importing a consumer product range from Europe and will be responsible for importing, distributing, marketing and wholesaling. Just wanting to get a realistic idea of the percentage manufacturers offer.

    Thanks for any further light you can share on this for me :)

    Sandra

    #1138608
    Melanie Miller Biz Coach
    Member
    • Total posts: 90
    Up
    0
    ::

    Hi Sandra,

    Do they distribute in to any other countries? If yes, they may have a set percentage already.

    I would look at going for the best percentage at least 50% and negotiate from there. Have you figured out your margin on the product and at what percentage it is profitable at and what percentage it is not? That is probably a good place for you start so you don’t end up with a distributor line with zero profit in it! Make sure you account for changes in the Euro too! We have a great exchange rate at the moment but if the Aussie dollar dropped 10% for example would you still be able to find profit in the product?

    Are their any competitor brands in Australia? If so for the purpose of calculating distributor pricing it might be worth benchmarking against that pricing – at least then you have something concrete to go back to the distributor with.

    Melanie
    http://www.agent99hq.com.au

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.