Columbia, I am committed this week. But definently once you move and are settled I would love to drive up and break bread.
I will also think up a list of cool destinations. Do yall like nature type stuff ?
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DM’ing ya
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@COVID-69 you are too kind sir!
Distribution is best when it is a one-sided love affair or none at all. Mutual respect and having an interest in your customer’s business. Keep it simple.
When we sell them products. We want to make sure they can sell them. Once they sell they buy more. The more they buy the more you can recommend or expand your business with them. Going from a couple of SKU’s to selling them 100’s of SKU’s. The relationships you have developed now you can transition them to sell other brands or products once you expand your business or exit this line to another one.
All this works when you understand the by-product of this relationship working is that you will always make money from whatever your selling.
It is greed that takes over. I make more margin from this item let’s sell them this. People end up doing consignments/net 30/60 because they think they will make more money.
Self-funded net days become complex but routine. My interest is for my customers to grow not so they can take me for a ride. Keep things within the right context.
Unless you are dealing with the owners themselves or large customers who rely on you to do the right thing. Most businesses will always shop around. Their managers don’t have any loyalty to you unless you over time build this personal connection with them. Which everyone should.
Things have to be kept in context. I supply you with products you want and now you sell and make money on. I need to be paid. Based on my assessment of your business. This is what I can provide you.
Nothing changes after that. My account managers could be their best friends. Drinking buddies or go to their wedding. They have no say when we extend credit or how much. When we stopped we stopped.
We realized this a long time ago. Based on our customers. When we have someone we know and trust because they were a manager at a store we catered to or worked there maybe someone recommended someone.
If they were opening up a vape shop and they didn’t have enough funds to start the business. You are taking a gamble with them.
Owning a business and/or owning the property in which you are running a business makes a huge difference.
Factoring takes a lot away from a traditional distribution business like we are. We have 5-20 invoices a month from 70% of our customers. The whole customer experience would take a hit if we couldn’t control this ourselves.
When we made the choice to stop extending net days for a while. It had no real impact on our business. We work for our customers. If they leave us. They are the ones who end up losing…hence we do fine. Most if not all come around.
As distributor who also sells empty hardware. I am often asked why don’t I pick up their brand. I can’t. It simply doesn’t make business sense. My customers rely on me to sell them known mainstream brands or upcoming brands that are doing the groundwork.
My customer base has changed. The market has changed. The clerk behind the counter is not introducing products but simply selling what customers want.
Net days are critical however business owners need to be business owners as well. Take a certain risk and manage their business. We will take returns. No issues whatsoever.
Anyone we feel just wants to make free money…us floating their entire business. It is not going to happen. We have done it in the past.
Being a good distributor is a thankless job for the most part. We make it clear. You want us to float your entire business. Have us as a silent partner.
Again net days are critical. However, this industry is very unstable as well.
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Have had my hemp company for a few years now, products on the shelves in about 50 stores. Got these accounts mainly just from walking in the door and talking with people myself. Don’t have time for that these days.
Sales are going good for a two person company, could still be considered a start up I guess. Opening up a retail store, signed the lease and got the keys yesterday. Read the last post a bunch thank you for the tips.
Meeting with a local distributor today who mainly deals with high end glass. Any tips?
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I want to be your customer. please give me the info.
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I didn’t mean to post this and I don’t know how to delete.
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@Distributionly replies in this thread will be helpful for you if you haven’t read them yet. He’s an example of an ideal distribution partner.
Just understand most of us distributors aren’t as big as him and can’t give the same level of service and still grow (or in some cases even survive).
Don’t prioritize price over everything else. Don’t negotiate price— at least, don’t press too hard. Only the little guys do this— they are simultaneously the least profitable retailers and the biggest PITA.
Be partners with your distributors. Make them money.
Consider the other terms. Do they take returns? When do you have to pay? Shipping charges?
None of these have to be make or break for the relationship but make sure you know what you’re agreeing to, get a contract, and make sure you can enforce the important elements of the contract.
Don’t think of profit in % terms. Instead, seek to maximize profit-per-use.
For example, on a particular vape, what is your dollar profit per puff?
And lastly, the people you put behind your counter will make or break your business. They should be
incredibly kind, knowledgeable, friendly, etc, but not at all costs— they should have & enforce reasonable boundaries.
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