Buying Direct or from a Distributor: Striking the Perfect Balance
And it’s important to note that this often applied equally as well in the other direction. There are enough stories about accounts that went direct, and whose business with Pioneer went down after doing so. Here, again, I find that this had much more to do with the rep that was calling on these accounts. Or should I say the rep that was not calling on them.
Looking back on that distribution model, it appears it is becoming less of a true guide as to how a dealer should be purchasing in today’s economic environment. Back then there was, without question, a lot of what I call false pride in being a direct account. I used to refer to this as having “distributoritis.”
Today, the value proposition of a supplier is more important to value-prudent business decisions than simply what price you pay for a single item. The psychological vanity that guides a shop-owner to want to purchase directly from a manufacturer is a shaky way to run a business.