Do National Retail stores purchase from Distributors?

[JaFool1]

Hello,

This may sound like a stupid question I am just looking for some general knowledge on the subject for a business idea I have.

Do high street retailers (i.e. WH Smith, Currys, Ryman, Richer Sounds) purchase from Distributors?
I am not talking about standard mass branded products but more unique, single products with manufacturers outside of the UK. Products that they may well not be aware of currently but could be pitched to them.

Would they purchase from a distribution company with the products already in the UK ready to ship, or would the prefer to source directly from the original manufacturer and handle the shipping, customs etc themselves?

Also, in your experience roughly what % margins do these companies look to make on a product?

Cheers,

[Some Gump]

Yes, most of them buy through distributors - as well as direct. Many manufacturers prefer to have a disty involved, for things like bought out warranty, or small volume logistics a manufacturer isn't very good at.

Margins? Depends on the product!

[jas xjr]

Retailers will sometimes use a distributor as they can distance themselves from a manufacturer and their sometimes less than ethical practices.

[bazza white]

Also can take several brands on one account rather then several accounts which has added benefits.

But if your selling a single line product as a small distro and you mess them about or don't play ball they may not think twice in going direct.



If your selling brand x from the USA and your company is brand x UK it may help.