Comfort over price – why customers choose distributors
Comfort over price
– why customers choose distributors despite they’re more expensive.
In most people’s minds distributors (or any other kinds of business intermediaries) are usually assumed as sort of robbers. Though, only until one tries and then figures out the advantages. Market rules apply quite similarly everywhere, and each customer is naturally seeking the lowest price for the best quality, there is a bunch of exception. And, especially for customers in Russia, the number of those exceptions is not that small.
First, quality is limited within getting clean and sound packaging in the batch. It starts from clear and illustrative offer (web or printed), responsiveness of the supplier, ease of paperwork or reclamation, etc. In Russia, add here currency transferring, customs formalities, language barrier and transportation difficulties the client would either have to deal with on his own or delegate to an intermediary. The distributor then doesn’t seem like a profiteer anymore, does he? For Russian clients, the distributor is at the same time his guide, his safety bag and negotiator in one instance. A bit more expensive that the original manufacturer, but saving too much effort, time, and budget to ignore the extend to which the distributor makes the client’s life easier.
Besides, for the customer, the distributor is an assurance of quick access to a way wider range of offers, samples and decoration options in one place – with a guaranteed life ring of fast replacements or alternative in case something goes wrong with the manufacturer’s factory or logistics.
And remember about billing in rubles. Russia’s banking system turns into a total nightmare for companies looking to import products. In a nutshell, the bank will not transfer the bill unless the client receives the delivery note – while manufacturers would not even start the production until they receive the payment. So, working with a distributor is not only a safer, easier, and faster option – but at times the only one.
That’s not all, though. Distributors provide just as much comfort (and savings) for the manufacturer, as for the customer. Most obvious – the distributor, that is settled in the EU, assures the payments just by default. Second, a distributor replaces an entire account management department, that sorts off, verifies, collects, and provides leads into orders from multiple clients, in addition keeping eye on all possible details to make sure the deal goes perfectly for both the parties.
Finally, the distributor takes a huge part of marketing effort, producing tons of POS, advertising, and other content that a rare manufacturer would ever bother to do. And all the distributor is asking for in return – is just a bit of loyalty and keeping the level of quality promised on your website’s frontpage.