Driver 6: Distribution channels
Your distribution channels can be thought of as all the ways that you are reaching your market. The more channels you have, the greater your reach and the lower the risk is if one channel were to be negatively affected. Distribution channels are all about “how do we get our product or service to the client?” Some examples of different distribution channels include:
- Partnerships with other companies
- Sponsors and sponsorships
- Tradeshows and industry events
- Wholesalers and suppliers
- Online
- Catalogs
- Mailing lists
The more ways you have distribution, the more paths that you have that give you access to your market, your client, and the greater the probability that you will make a sale.
By increasing the number of ways, a client can find your product or service generates higher sales based on probability and exposure alone. You will have a number of distribution channels that you’ll have created and won’t recognize or really think about. The potential that lies within the distribution channels that you have not yet maximized has the ability to multiply your profits.
This is where your relationships and connections are so important and can really benefit you and your company. If you have distribution channels in place, you can maximize the benefit of them by securing deals to sell related products or services through them. If you have a small product line, you can consider appealing to other businesses in your industry to include their product in your distribution lines and take a portion of their earnings. It’s a great way to utilize the power of your network and the relationships that you’ve maintained to mutually benefit all.
You can also improve and leverage your current position in the market; by securing strong business to business clients, you can influence your purchasing power to secure better prices, terms, or rebates by offering exclusivity. Alternatively, you can actively shop around for better prices from multiple suppliers. Suppliers often have access to benefits and rebates from manufacturers and insight into industry trends.
Remember that digital technology has made it much easier for companies, especially small businesses, to have access to and utilize effective and direct channels of distribution. Digital eCommerce tools and bookable services have made direct selling far more appealing and successful for businesses. Think about whether you have already invested in creating an online presence, for example do you have a website? You could consider adding an ecommerce, bookable service, or membership to further your distribution reach. You don’t necessarily need to break the bank to add this functionality and it helps if you learn how to add more digital skills to your collection.