Quote:
Originally posted by tdatk
This has nothing to do with racism,but I feel that all resale mark-ups are another form of welfare. Given we all need retail points of purchace, but how many times have you seen that resale is the largest profit taker of manufactured goods including farming. I'm sure some economist/sales rep will chime in stating the necessity of retail sales and try to justify
their position
J/M .02c
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And on that note -
A lot of mfg's use that form of distribution to the general public for several reasons
1- sharing of costs with marketing
2- sharing of product liability
3- another way to guarantee return on production through contracts
4- allows multiple points of distribution - saving on costs, all the way around.
Another way of viewing a retailer is not as a vendor for a chosen item but more as a sophisticated marketing service. A manufacturer puts it there, and the salespeople / marketers expend the time and the energy to make guys like us all understand.
Believe me, I'm coming from a sales and marketing background. If there was a way that the manufacturers could eliminate retail and still make it profitable - they would.
rjp