07:30
Faizan
Not all businesses can afford to purchase the equipment, run the equipment and maintain the equipment required to manufacture certain products. Additionally not all businesses can generate enough work to make such a manufacturing process profitable.
For example, in the world of CD manufacturing the investment on equipment can run into the hundreds of thousands of dollars if not into the millions, there is a significant requirement for space in which to set-up operations as well as power and utilities, and the volume of product required to operate profitably is significant.
Due to this, most companies choose to purchase products and services from the manufacturer and then resell them to their own clientele. This type of business is often referred to as being a broker, an agent, a reseller, or even a middleman.
Why would you want to go through a reseller instead of going directly to the factory?
In some situations you may have no other choice. While many CD manufacturers have evolved from the wholesale only business model to a combination of wholesale/retail (as to be able to market directly to the end-user) there are some manufacturers who still only work through resellers and will not take an order directly from the end-user. Instead they will refer the end-user to one of their reseller clients that is located in proximity to the end-user.
Due to economic and supply-and-demand realities there really aren't that many optical disc manufacturing plants in operation any more; at least not in comparison to ten or twenty years ago. If you're the type of person who prefers to travel to a company's premises and transact your business face-to-face then it may not be possible to do so with a manufacturer if there isn't one in your region. Resellers are much more plentiful, and there is an excellent likelihood that there will be at least one reseller in the community in which you live.
Alternatively, if you're the type of person who doesn't have any reservations about conducting business over the phone and/or via e-mail, then it is possible to work very successfully with a CD manufacturing plant that is outside of your immediate geographic region.
Additional considerations to keep in mind relate to service and expertise; as these factors will vary widely from one reseller to the next. Because the reseller is one step removed from the actual manufacturer the reseller may not possess the specialized knowledge or expertise to assist you with all of your needs, so you can probably expect a delay in getting technical information or even status updates on your order due to communications having to travel back and forth through the reseller.
For example, in the world of CD manufacturing the investment on equipment can run into the hundreds of thousands of dollars if not into the millions, there is a significant requirement for space in which to set-up operations as well as power and utilities, and the volume of product required to operate profitably is significant.
Due to this, most companies choose to purchase products and services from the manufacturer and then resell them to their own clientele. This type of business is often referred to as being a broker, an agent, a reseller, or even a middleman.
Why would you want to go through a reseller instead of going directly to the factory?
In some situations you may have no other choice. While many CD manufacturers have evolved from the wholesale only business model to a combination of wholesale/retail (as to be able to market directly to the end-user) there are some manufacturers who still only work through resellers and will not take an order directly from the end-user. Instead they will refer the end-user to one of their reseller clients that is located in proximity to the end-user.
Due to economic and supply-and-demand realities there really aren't that many optical disc manufacturing plants in operation any more; at least not in comparison to ten or twenty years ago. If you're the type of person who prefers to travel to a company's premises and transact your business face-to-face then it may not be possible to do so with a manufacturer if there isn't one in your region. Resellers are much more plentiful, and there is an excellent likelihood that there will be at least one reseller in the community in which you live.
Alternatively, if you're the type of person who doesn't have any reservations about conducting business over the phone and/or via e-mail, then it is possible to work very successfully with a CD manufacturing plant that is outside of your immediate geographic region.
Additional considerations to keep in mind relate to service and expertise; as these factors will vary widely from one reseller to the next. Because the reseller is one step removed from the actual manufacturer the reseller may not possess the specialized knowledge or expertise to assist you with all of your needs, so you can probably expect a delay in getting technical information or even status updates on your order due to communications having to travel back and forth through the reseller.
Posted in: business
