2018 Cut Out The Middleman Year
I haven’t bothered with a New Years Resolution this year but instead are writing posts about what I would like to see in 2018 and what are my predictions are for 2018
My predictions (in no particular order)
2018 Will Be Known as Cut Out The Middleman Year
As any online retailer of niche products will know there has been a trend in recent years of manufacturers or importers using their own websites to sell their own products.
Those with a number of Online retailers have tended to sell at RRP or higher so as not to upset or compete with their dealers but more and more we are seeing manufacturers undercutting their own dealer networks and effectively reducing the margins and effectively pricing them out.
In this day and age where more and more sales are Online a smart manufacturer with a good website and marketing team don’t really need other Online retailers selling their products and taking big cuts which the manufacturer could make themselves or can reduce the end user price of their products to make them more competitive with similar manufacturers importers who are doing likewise.
All it takes is one manufacturer to cut out the middleman and prices to end customers can be reduced by as much as 40% which leaves other manufacturers of similar products with little option but doing similar.
The days of Manufacturer – Importer – Distribution Company – Retailer – Customer for Online products is well and truly numbered.
For overseas products the process is now closer to;
Manufacturer – Importer – Distribution Company (with online ecommerce site) – Customer
Manufacturer – Importer (with online ecommerce site) – Customer
For products produced in the UK we are getting close to;
Manufacturer (with online ecommerce site) – Customer
Will 2018 be the year more manufacturers realise they have to cut out the middlemen to compete
We’re sadly heading towards a price is everything society where service comes 2nd and everyone is judged on price. Why does a manufacturer need a dealer networking providing a good service when the end customers is more interested in buying the product at the cheapest price?
“There is hardly anything in the world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person’s lawful prey.”
The problem is, there are an awful lot of people who do consider price alone as we turn more in to a throw away society and if a manufacturer can sell cheaper without having a dealer network the days of the Online Retailers are numbered 🙁