Can we combine direct selling/home parties with existing retail channels we sell our products to?
My company is considering opening direct sales channels. My biggest question is whether it's possible to do this when we're already selling via a retailer network as well, or whether this is going to clash. What other advice would you like to give? Many thanks in advance.
That's a great question!
I work as part of the retail channel, for some suppliers. I noticed a common thing:
- They all started promoting the retail channel, offering great support, focusing entirely on their partners!
But now, most of them are also selling directly to the end client! This is mainly because of the results theirs partners are getting, when the results drop, they try to survive and so they think of selling directly!
As a partner, I can tell you that it's not good to know that now they are selling directly! I felt betrayed!
But from the business point of view, I can totally understand their (and yours) dilema!
It's a hard decision to make, and you have to think very well about it! My suggestion:
- If you have several products/services, try to see your partners feedback by selling directly only part of the products/services you have. And start with the less profitable ones, so they don't feel threatened! This way you can measure their reaction and see if you should continue or not.
Keep me posted on your decision and results!
Thank you Ibramos, that's useful feedback. All the other research I've done pretty much answers the question in a similar way, so that leaves things pretty clear.
Thanks again! (Porto, great place to live! Beautiful! :0)
Have a nice day.
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