January 31, 2024

Door-To-Door Distribution Methods

The distribution method used to get a product from the company that made it to the end-user or customer is an important factor for companies. The right choice depends on the type of product, the market and the company’s stature at that point. For example, if you are selling perishable goods that the customer wants to see and touch before they buy them, then door-to-door sales may be your best option.

Direct distribution involves a manufacturer selling its own products to the end-user directly without using middlemen, as is the case with e-commerce websites for a company’s online catalog of its own product offerings. Manufacturers that use this distribution channel are able to eliminate intermediaries and their markup costs from the price of their product, so they can offer it at a lower cost than if they used an indirect route to reach the market.

Indirect routes to market involve a manufacturer or producer hiring outside sales agents and distributing their products through them. In this approach, the agent sells the product to the customer and gets a commission for his efforts. This method is suitable for businesses with a limited market, where the client base does not require a large number of purchases and needs individualized service.

Consumer promotions are devices that attempt to attract the ultimate consumers or end-users to a product by offering them incentives such as free samples or money-refund offers. They also include coupons that allow customers to save a stated amount of money off the regular price of the product they are buying at a store or chain outlet. Contests and sweepstakes are also common consumer-oriented promotion devices.

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