Different Types of Distributors Summary

If you’re selling any type of product to consumers, one of the biggest decisions you will have to make is whether you want to work with a distributor or not. Distributors can help you get your product to market quickly, and free up your time so you can focus your efforts on other areas of the business. But, if you do decide to hire a distributor, which type should you choose?
Exclusive Distributors
Some distributors will ask you to sign an agreement stating they will be the only distributor to work with your product within a certain geographic region. These exclusive distributors may be the right fit for your business if you are worried about maintaining your brand’s image. When you work with multiple distributors, they become the face of your brand, so you have to trust that they will represent you well. However, if you work exclusively with one distributor, you have more control over how they present the products and who they are selling to, so you can protect your brand a little bit more.
Intensive Distributors
If you’re aiming to enter the market and cover a wide range of territory quickly, you will need the help of a distributor who is skilled in intensive distribution. This type of distributor works best within industries where customers switch back and forth between brands when their first choice is not available. For example, if a customer prefers energy drink brand A, but it’s not in stock, the customer will buy energy drink brand B instead. In this situation, energy brand A lost out on a sale because the energy drink distributor did not succeed in stocking that specific store’s shelves, so the customer was forced to switch to a competitor. Brands often measure the success of an intensive distributor based on the number of retailers he has been able to secure.
Direct Distributors
Direct store distributors skip the middle man by selling products directly to the store instead of taking them to the retailer’s distribution center. This type of distributor has quicker turnaround times, so he can easily restock items that are selling faster than the store anticipated. Retailers usually love working with direct distributors because of their fast service and ability to meet demand.
Selective Distributors
The companies who hire intensive distributors want their products in as many places as possible, but the companies who work with selective distributors do not. These brands pick and choose the retailers they would like to carry their products, and then hire a distributor to deliver products and provide high quality customer service to them. This type of distributor usually works in niche industries where the retail outlets are limited. For example, a car parts manufacturer would not be able to sell to grocery outlets, so they may work with a selective distributor who can sell and service the niche retailers that do sell their products.