05 December, 2013

1-4-2 value delivery: Distribution channels

Distribution is how you deliver your value form to your customers. There are two ways to deliver that

1-     Direct-to-user approach
-          Hand to hand from the creator to the customer
-          Examples: a small bakery, hairdresser etc.
-          Advantages:
-          You are sure of the quality of the value delivery process
-          The quality of the value upon delivery and the upfront relationship with your customers
-          Less money to expend
-          Disadvantage:
-          Demanding approach
-          Need extra time and effort
-          Can't have access to a lot of customers

2-     Intermediary distributor approach
-          No direct sales here
-          Intermediate station/s of distribution till it reach the upfront distributor that sell to the customers
-          = resale business. People resale on your behalf 
-          Advantages:
-          you get access to a lot more customers than evaaar
-          less effort, energy and time to expend
-          professional high quality resellers will gain you better reputation and customers' trust
-          Disadvantages:
-          More money to spend, which raises the product price
-          Too many hands before your value form get to the customers make it more risky for the value to be affected (think about storage, transport hazards, etc.)
-           With less professional resellers, your reputation will be greatly affected in a bad way

-          You still have to set aside time and effort to continuously evaluate the quality of transport and the upfront selling to you customers to make sure that your effort is not wasted in the way be some stupid mF*