Does it cost more to buy through a distributor? NO. Often it costs LESS!
- Sales costs are transferred from the manufacturer to the distributor. They are not added.
- Overhead costs are frequently higher for the manufacturer than for the distributor.
- Travel and sales promotion costs are spread over many products. Travel is usually local.
- Credit administration is reduced because the manufacturer has one distributor account instead of many accounts. The distributor usually sells an account item from more than one manufacturer.
- More importantly – the distributor can select from more than one source. Distributors have insight into quality producers that can be cost effective. This is one of the great advantages of dealing with your NACD Distributor. You get the advantage of the distributor’s intimate, wide-spread and long-term knowledge of suppliers to meet your needs.