Distribution Channels
3rd Party Distributors
-
- Can you handle the demand if orders come in for large quantities?
- What are anticipated delivery time frames of the vendor for the products? Reorders?
- What are the payment terms? Net 30, Net 60? You will have to be able to invest money in the product and be able to wait for payment from the vendor.
- Who pays for shipping?
- Will you and are you capable of giving the distributor "quantity discounts" if they order in bulk?
- Is it worth the effort for the amount of profit?
- Are you willing to wait (depending on the product) approximately 8-12 months to see a return on your investment (ROI)?
Direct Distribution
-
Considerations
- Do you have the storage space for assembly?
- What are the climate conditions of a potential storage area, and how will they affect your product?
- What is the initial cost of pack design?
- Do you need to incorporate or create an LLC?
- Who is your target market? Art quilters, traditional quilters, or both? Teachers?
- Can you write a book to promote the product?
- How much can you spend on print advertising?
- Can you afford a web presence with a secure payment feature?
- What type of liability insurances will you need?
- How much labor will it take from production through shipment? Can you do it alone? Who can you hire to help?