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Being more than the middleman
Q: I run a small company that resells a product that is available to consumers and businesses directly should they call directly the company who owns the product. In other words, we are a middleman.
We have been thinking about reselling this product to other companies in the same business as ours but who are unaware the products exist or if they do know about it are not selling it. Those who know and are not selling the product, might either be unaware of the potential market or do not feel comfortable servicing it once its been sold.
Should we decide to resell the product to other businesses, with time, those businesses might find out we're just a middleman and go directly to the supplier and learn how to service the product themselves to get a higher profit margin. Could we be creating our own slow death by trying to resell this product and increase the competition?
A: Some of the biggest companies in our economy are actually resellers (Dell comes to mind.) If you don't offer anything more than the manufacturer, you may well be doing harm to your company.
They key is to offer something more. Usually you create value added by simply spreading the word. The other guys may be making the product, but you are the one who is becoming known for selling it. Perhaps more important, you can provide a level of service the manufacturer can't. Give ready and reliable customer support, a friendly, caring attitude and you will quickly gain consumer loyalty.
Some issues discussed in the expert forum are complex and continually changing.We recommend you consult a professional advisor about your specific circumstances, needs, and applicable laws. More details.
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