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Kurt,
In addition to the points already made, look at it this way:
Let's say that you happen to possess some type of technical expertise in either the design or manufacturing arena. The stars were in alignment for you and you figured out a way for this expertise to earn a profit (or so you think). You are fortunate enough to find capital, a facility, reliable suppliers and reliable employees (this is not as easy as it sounds). Keeping in mind, of course, that 9 out of every 10 new businesses fail. Now, you don't possess any marketing knowledge or experience. You could hire it, at significant cost, or simply let others do it for you. This will give you near instant distribution nation or world wide. Your product will immediately accrue the reputation of retailers who have established customer bases, not to mention customer service departments.
Your bottom line will be substantially the same either way (because if you handle distribution you will have to increase unit price to cover the marketing costs). You have sunk every nickel you can get your hands on into this company and have pledged everything down to your kid's Pokemon card collection to secure financing. You are the CEO. What is your call?
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Steve Eidson
81 SC
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