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> It's much simpler for them and more efficient on their end to just sell to a middleman. In that case, Dell, Apple, Sony, and Microsoft must be morons. Becaus
by maratd 13y ago
> It's much simpler for them and more efficient on their end to just sell to a middleman.
In that case, Dell, Apple, Sony, and Microsoft must be morons. Because they sell directly to consumers.
It's not about simplicity or efficiency. It's much more efficient to sell directly to the consumer. It just takes an immense amount of resources that smaller manufacturers simply do not have. That's why medium/small sized manufacturers rely on larger middle men and retailers. Not because it's more efficient, but because they simply don't have a choice in the matter. They don't have the resources to go directly to the consumer.
- rtkwe 13y agoYour example companies are working at huge scales compared to most companies that go through distributors. The big difference there is that those companies are selling consumer goods. Many companies that deal exclusively through distributors are selling to businesses, it's a much different environment. When you're working at a huge volume the difference in price makes a much larger impact than if you're selling to a smaller number of companies and the cost of setting up the handlers is dwarfed. > It just takes an immense amount of resources that smaller manufacturers simply do not have. Requiring less resources is a form of efficiency for the manufacturer. Being able to simply ship to a single distributor vs shipping to many individuals and having the infrastructure to process those packages, is more efficient to the small manufacturers. It may not be on the wider economic scale but for small companies it saves a lot of work.