Question

Explain the most appropriate channel of distribution to sell heavy industrial products.

Answer 1

Manufacturer customer: Manufacturers of expensive and highly complex industrial products such as power transformers, boilers etc. sell directly to their users. Customers of such products are generally limited in number and a manufacturer can deal directly with them. A close collaboration is often needed between a manufacturer of industrial plants and machines etc., and his users during all stages of negotiation regarding specifications, price, terms and conditions etc. and installation and after-sales services. Middlemen cannot possibly handle such complex relationships because of lack of technical expertise.