Distribution Channel

“Unless a person is a clam digger, a trapper, or an old-style pick-and-shovel prospector, it’s virtually impossible these days to be a success all by oneself.” — Benjamin F. Fairless, former head of U.S. Steel

Key Ideas:

• A Distribution Channel describes how your offer will be delivered to the end user.
• There are two types of Distribution Channels:
  
  
  • Direct-to-user Distribution: single channel, from the business directly toe the end user. This is the case of many services like getting a haircut or a car wash. It’s effective but you can only serve as many customers as your time and energy allow.
  • Intermediary distribution: multiple channels, usually through Resellers. The business that created the product can sell it to many Resellers, increasing its reach and sales. The drawback is that it requires giving up certain control over your delivery process, which could hurt your Reputation if the other Reseller doesn’t perform well.
• You can’t set and forget your Distribution. If you work with multiple channels, you need to make sure that they are representing your business well.

Questions for Consideration:

• What distribution channels may be available for your offering?
• How can you maximize your distribution options without risking your reputation?