As an entrepreneur, it’s crucial to choose your business partners wisely to ensure that your products and services get the exposure they deserve. And when it comes to sales partners, you have two main options, distributors and beauty manufacturers. If you’re starting and aren’t sure which one to choose, here are a few things to consider so you can be confident about your choice from the beginning.
Who is the manufacturer?
A manufacturer is a company that produces products. This can be done through components’ assembly, fabrication, or packaging. A manufacturer typically has more control over production and may be able to offer customization options to customers.
They may also be able to provide a higher level of customer service. Some manufacturers may even allow you to distribute their product in return for paying them a royalty fee.
Who is a distributor?
A distributor is a company that buys products from manufacturers and then sells them to retailers. Distributors typically have a vast network of contacts and can often get products into stores more quickly than manufacturers can.
However, they also typically charge higher prices than manufacturers. If you don’t have any connections in the industry and need quick distribution, then this might be a good route for you. If you’re confident about finding retail partners on your own, though, then it’s probably better to go with manufacturers who are likely going to give you lower prices.
Differences between manufacturer and distributor
When you’re starting a business, it’s essential to choose the right type of supplier. Do you want to work with a manufacturer or distributor? Here’s a look at the key differences between these two types of suppliers.
- Manufacturers are responsible for producing the goods and managing inventory levels. Distributors will purchase products from manufacturers and sell them to retailers in a specific geographical area while maintaining their inventory.
- Manufacturers have a more limited geographic reach than distributors and are often focused on specific industries or product lines.
- Distributors are generally less concerned about what they manufacture because they can buy products from different sources if needed. Still, they will typically be less vertically integrated than manufacturers who produce their goods. On the other hand, distributors may be able to offer greater flexibility when it comes to payment terms.
One thing both types of suppliers should provide is customer service for their customers as well as quality control. In some cases, there may not be much difference between working with a manufacturer or distributor depending on what kind of company you have and where you intend to distribute your goods.
For example, if you plan only to sell online, then a wholesaler might suffice, whereas if you want physical retail stores, choosing a manufacturer might make more sense. Whichever supplier model works best for your business depends on many factors, including where your customers are located and how large an operation you need.
Advantages of contacting manufacturers
There are several advantages to contacting manufacturers.
- First, manufacturers can help you create a custom product that meets your needs and requirements.
- Second, manufacturers can provide you with a higher quality product than you could get from a distributor.
- Third, manufacturers typically have lower minimum order quantities (MOQs), which means you can order smaller quantities of products to test the market before making a more significant investment.
- Fourth, working with a manufacturer gives you more control over the production process and timeline, ensuring that your products are made to your standards.
- Fifth, manufacturers often offer better pricing than distributors since they eliminate the middleman mark-up.
- Sixth, having a direct relationship with a manufacturer gives you access to their technical expertise and customer service support.
- Seventh, as a manufacturer’s client, you’re automatically entitled to a discount on future orders and access to special promotions.
- Eighth, manufacturers have relationships with many distribution channels, so they can place your product on shelves at any store without needing an intermediary.
- Ninth, when it comes time to sell your products in bulk orders or retail stores, manufacturing allows you the opportunity to package them however you want–something distribution cannot do for you.
Beauty Sourcing platform: Gathering All Qualified Manufacturers
If you plan to sell online and want physical retail stores, then choosing a manufacturer makes more sense.
Beauty Sourcing is a platform gathering all the qualified manufacturers with serious verification. Specifically for the beauty business, BeautySourcing was developed.
With more than ten years of experience in the industry, beauty sourcing selects each manufacturer with professionalism.
Furthermore, it is a market where businesses can interact with one another. Its O2O model perfectly matches international professional beauty exhibitions, allowing the platform to stay updated with the newest manufacturers.
Using their convenient product searches, you can find events online and offline that showcase the most recent trends and get inspiration from more than 5,000 original ideas!
