Sunday, December 5, 2010

Distributing Your Product

Once you have your product, you have to figure out where to place it. Do you want to sell it in a Wal-Mart or a Neiman-Marucs? Most of this depends on who you want to buy it.
If you want rich up and comers to consider your $300 sunglasses a status symbol, you would choose to sell it in a high end store like Neiman-Marcus. But if you wanted your $5 sunglasses to be easly accessible and worn by everyone, you would probably choose to place them in a Wal-Mart.
You may choose to sell you product in singular units or you may choose to sell your product in bulk. All of these factors influence pricing, and are important to consider.
Walk into your local grocery store.
What do you see on the shelves? Food, cleaning suppplies, home-care products? How did they get there?
Chances are a big truck came from a local or distant warehouse and brought they items. Most grocery stores don't have enough storage room for tons of product,
and they only have enough room to keep most of their products on the shelf. This is one reason why Just In Time Delievery is vital in today's market.
Just In Time Delievery is a guarentee that your product will be shipped right off your assembly line, straight to it's destination, whether that's a warehouse or a retailer.
Another reason this is so important is because you really don't have enough storage space to hold all of your product, AND the materials to make your product. You need that materials delievered right on schedule, and the finished product taken right on schedule.
For these reasons it would be very stressful to be a Distribution Manager. Dealing with all that stress, "Is it here yet?" "Oh no, the product is here and we don't have any room!" would drive me insane! But somebody's got to do it, and as long as I understand it, I can avoid it so it won't be me!

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