Category Archives: Distribution

10 Questions Every Entrepreneur Needs to Ask Suppliers

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Choosing a supplier is one of the most crucial decisions you will make as a small business owner. And just like with all decisions, being informed is vital to ensuring success. In a blog post for Entrepreneur Magazine, Jane Porter discusses the 10 key questions that you should ask suppliers before going into business with them. According to Porter, discussing things such as payment terms, liability insurance, and what happens if materials don’t arrive on time, is important to clarify prior to joining forces.  It is inevitable that there will be a product that doesn’t sell or one that is delivered late, so talking about these issues before they arise is essential to making sure that you don’t get stuck with a financial burden that you can’t afford.

Read more of Jane Porter’s blog post, 10 Questions Every Entrepreneur Needs to Ask Suppliers, via Entrepreneur.com.

-Julia LaSalvia, Lexity

 

Retailers Race to Make Online Shopping Go Smoothly

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With Black Friday on the horizon, the pressure to perfect your distribution system becomes even more prominent. According to Hadley Malcolm and Jayne O’Donnell of USA Today, “the next few days can be make or break for all the online retailers.”  While Thanksgiving Day usually provides a surge in online sales, online businesses will likely seen an even bigger day on Monday, known as Cyber Monday for the online promotions.  So how can you prepare yourself for the sales boost? One way is to make sure your site updates consumers as early as possible when a product is out of stock and when it might become available. An incredibly common error during this season, is taking orders that you  are unable to fulfill by Christmas.  According to the post, with more customers choosing to shop online, the need for a seamless experience has become imperative. Smartphones and tablets have created a situation where people are in “shopping mode” anywhere with cell phone service. Making your website compatible with these devices is crucial for success this holiday season.

For more advice on how to stay ahead this holiday season, read more of Hadley Malcom and Jayne O’Donnell’s article, Retailers Race to Make Online Shopping Go Smoothly via freep.com

-Julia LaSalvia, Lexity

Distribution Options for Online Businesses

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Online businesses present a unique opportunity to select distribution methods that work best for your company. Do you plan to warehouse your goods to keep everything in stock, or do you prefer a cheaper option?  While there are many benefits to warehousing your products, businesses with less upfront capital may prefer a different method. Another distribution option is referred to as “drop shipping.” In this scenario, your business makes the sale, but you have your supplier ship the product directly to the customer for you. In a blog post by Karen Bedinger, the advantages and disadvantages of drop shipping and warehousing are outlined. Bedinger emphasizes that, “by relying solely on drop shipping, and therefore not having a need for a warehouse, you can cut your cost base.” However, there are some drawbacks to this selection: businesses based on purely drop-shipped merchandise will often have trouble establishing “a loyal clientele as customers will figure out that your company is essentially virtual, and may prefer to do business with someone who has the goods in hand, and can guarantee faster shipping or better discounts.”

To read more about distribution methods, read Karen Bedinger’s post, Distribution Options for Online Businesses via Self-Counsel.com.

-Julia LaSalvia, Lexity

Distribution Methods Affect Bottom Line

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Selecting effective distribution channels is one of the most important decisions you will have to make as a small business owner.  Unlike pricing and packaging, which tend to be flexible choices, “the distribution and sales decisions, once made, are much more difficult to change.”  While your company may have products that would appeal to many different channels of distribution, when resources are limited, it is best to select a single or limited number of channels. In a recent post in BizFilings.com, the most crucial qualities to consider when selecting a distribution channel are discussed.  Some of these conditions include looking into the financial risks and commitment involved as well as the costs of entry compared to the competition.

Read more of this blog post, Distribution Methods Affect Bottom Line via BizFilings.com.

-Julia LaSalvia, Lexity 

Why Should Small Businesses Embrace e-Marketing?

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In a recent post by Jonathan Blomquist, the importance of online advertising is discussed. Online advertising has completely changed the way companies reach out to their customers.  According to Blomquist, “no longer do massive media agencies control the flow of information, generate awareness, and produce ads for struggling start-ups or thriving corporations.”  Anyone has the ability to reach an international audience and speak to them directly. This has dramatic implications for nearly every facet of operations: marketing strategies, product development, pricing strategies, advertising promotions, distribution channels, and specialized customer targeting are all affected. In the post, Blomquist advises businesses to embrace e-marketing and gives techniques to expand your business’ potential reach.

Read more of Jonathan Blomquist’s blog,  Why Should Small Businesses Embrace e-Marketing? via business2community.com

-Julia LaSalvia, Lexity 

 

 

What’s the Best Way to Monitor Your Distribution System?

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The relationship between an entrepreneur and a distributor parallels the relationship between spouses, according to Christopher Hann’s article featured in Entrepreneur.com.  Like a marriage the entrepreneur-distributor alliance requires that the parties “must have a mutual understanding of each other’s expectations.”  A successful relationship between an entrepreneur and a distributor begins with open lines of communication; the entrepreneur should outline exactly what they expect from the distributor and set up a timetable for regular communication. This is also crucial to the monitoring process, whereby both parties should feel comfortable giving regular feedback to each other.  Hann goes on to describe how “regular monitoring helps entrepreneurs stay abreast of their product’s fate in the marketplace and pinpoint the source of the inevitable bumps in the road.”  In addition to strong communication and effective monitoring, Hann cites consistency as a pivotal element of the entrepreneur-distributor relationship. It’s not enough to simply set up a timetable for regular communication; each party must stick to the plan. Just like a marriage, everybody should be held accountable in the relationship.

Read more of Christopher Hann’s article What’s the Best Way to Monitor Your Distribution System? via www.entrepreneur.com

-Julia LaSalvia, Lexity 

Place (Sales and Distribution)

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What does “place”refer to in a small business marketing model? If you need to learn that it means how your product or service reaches your customer, then this article from smallbusinessnotes.com is just for you! “Place” refers not only to how your make your sales, but also to your distribution system. This insightful article about a very practical side of running a business—product distribution—points out several questions to ask yourself about your sales approach, cycle length, product delivery capacity and more.

See all the questions to ask yourself in this article Place (Sales and Distribution) via www.smallbusinessnotes.com

 

Distribution Methods Affect Bottom Line

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 Want to know how your choice of product distribution methods will effect your revenue? Read this useful article from Business Owner’s Toolkit to see what different distribution channels are available, the up-and-downsides of each and what to consider when making the one business decision that, along with sales decisions, is harder to change once made.  “Whether retail, wholesale or business-to-consumer, choosing the right distribution method to complement your product or service can be a boon to your bottom line.” Complete with compelling case studies, cost evaluation and a guide to evaluating your competition, bizfilings.com’s article is a must-read for any budding small business owner.

See the whole article entitled Distribution Methods Affect Bottom Line via www.bizfilings.com.

-Michelle Crawford, Lexity

Landing Overseas Distribution With Limited Resources

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Distribution

Savvy small business owners sometimes have to make tough decisions when faced with product distribution challenges. In her advice article entitled “Landing Overseas Distribution With Limited Resources” author Karen E. Klein helps a small business decide what to do when faced with “increased demand but scarce financial resources.” Its important to look at new opportunities with an eye toward measuring the risk-vs-reward. Factors like shipping and inventory costs can make or break different distribution deals that come your way, but with smart negotiations you may be able to take advantage of the opportunity without putting your business in peril.

Read all of Karen E. Klein’s highly useful article here: http://www.businessweek.com/articles/2012-07-11/landing-overseas-distribution-with-limited-resources via www.businessweek.com

-Michelle Crawford, Lexity

Stanford’s Entrepreneurship Corner: Drew Houston, Dropbox

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Distribution

What is your distribution strategy? If you have only thought of traditional methods such as PR, AdWords and SEO for your startup so far, Dropbox Co-Founder Drew Houston gives some points to consider on the success of some of the “guerilla-style” successes the company had in their efforts to grow their user base in this interesting video from Stanford’s Entrepreneurship Corner. Hear how a “linkbait” video they made in their first year with viral video file names solved their distribution problem overnight!

Watch the video at Stanford’s Entrepreneurship Corner: Drew Houston, Dropbox via ecorner.stanford.edu

-Michelle Crawford, Lexity