Question

Suppose that the president of a carpet manufacturing firm has asked you to look into the possibility of bypassing the firm's wholesalers (who sell to carpet, department, and furniture stores) and sell direct to these stores. What caution would you voice on this matter, and what type of information would you gather before making this decision?

Answer 1

Before settling on a choice to bypass the company’s distributors, a company ought to consider every function that the distributors perform.. Data on the expenses caused by wholesalers ought to be collected and those collected data should be compared with a system framework where the merchant is bypassed.. Likewise, distributors performed functions. for example, keeping up touchy associations with clients, are very difficult to measure in monetary values.. Along these lines, quantitative factors should also be taken in the consideration.