How intermediaries might lead to the downfall of your business and the solution

Intermediaries in business take on many guises. A broker is an intermediary between the buyer and the seller. Banks are intermediaries when it comes to transactions. Sales representatives are intermediaries between the customer and the company. Distributors are intermediaries between manufacturers and retailers. Intermediaries have been known to be positive to businesses, but sometimes, in online businesses, intermediaries such as banks, advertisements, and many others can harm your business.

The truth
If you are not working with your buyer directly, it may be difficult to know why the customers buy or why they don’t buy. Intermediaries my blame your price point when the actual reason is their failure to explain the benefits of your product effectively. You may result in greater sales if you lower your process but it may not lead to revenue or profits. You may be limited to develop your product or add enhancements to your current services if you have no direct contact with your customers.

You may just be one of the many suppliers represented by one intermediary
Intermediaries represent more than one company, supplier or manufacturer. Your product may be competing with other products represented by the intermediary even if he doesn’t represent a direct competitor. For instance, if your company is providing construction services, the sales representative is likely to be representing other contractors. If your services seem to be higher in prices compared to other contractors the intermediary represents, he will likely to sell out other contractors and not you. He may even lose interest in your products if they don’t sell well immediately. This is because he won’t want to waste time on your services because they are difficult to sell.

Loss of control
If you have a direct distribution system, you will control every step from the initial sales call to the delivery of the product. If you use an intermediary, you will lose control. The intermediary may only concentrate to make sales and not to sell your products in particular. Some intermediaries will not allow you to make the decision on whom to sell to and who not to sell to. Another challenge is that if the intermediary does not renew their contract, you will lose your entire sales channel and you will have to start afresh from scratch. You may not have known where your products or services were being sold.

Higher expenses and lower revenues
The intermediary will buy a product from you and sell it at a higher price. This will make you lose the revenue than if you had sold it to the consumer directly.

Intermediaries may have a negative impact on your business. In most cases, businesses use intermediaries not because they want to but because they have no other option. For instance, people use banks to pay clients because there are no other trusted institutions to do the task. Bob’s Repair is going to give contractors an option and help them eliminate fraud and intermediaries in the skilled trade industries.
Website link: http://bobsrepair.com/
Whitepaper link: https://bobsrepair.com/docs/White-Paper.pdf
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