A business guarded by politics can’t fail?

[DeletedUser0287]

Needed some parts for my business.
Went direct to brand selling them.
They told me the MOQ of the factories and MOQ that their distributors buy from.

The value of of distributors is pretty much to lower the MOQ and they charge higher cost per unit.

The brand told me to buy from distributors For lower MOQ. I’m like ok, turns out most don’t carry the specific part I want, so now I need to purchase the same high MOQ that the distributor purchases from.

So there is literally no point in purchasing from distributor now. I ask the brand to purchase right from the factory becauseI am hitting the MOQ.

Wait for it...they say that would hurt the relationship of their distributors and they wouldn’t do that. Now I have to go through the middleman because of politics??? Must be nice to be on the list of that distributors. Those parts will always be in demand. Essentially, the distributors have a locked number of competitors, there are only like 3 distributors in the US.

 

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[Lucky Lu]

Maybe their exclusive rights are part of their deal. It seems that their business is contractually protected instead of politically. My humble opinion is that you should aim exactly for that. To sell so many that you have enough leverage in order to constitute yourself in the mandatory and contractually bonded "middle man".

 

[broswoodwork]

most don’t carry the specific part I want

Buy from the ones that do carry the specific part you want.

 

[DeletedUser0287]

Buy from the ones that do carry the specific part you want.

None of them have it, so I am forced to buy the MOQ of the distributors.Going through a middleman literally for no reason.

 

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[broswoodwork]

None of them have it, so I am forced to buy the MOQ of the distributors.Going through a middleman literally for no reason.

Tough times... Well, at least it's doable at all, right?

 

[DeletedUser0287]

Tough times... Well, at least it's doable at all, right?

Yeah, it just got me thinking how these distributors don’t have to do anything or be fearful. It is guaranteed business.

 

[Xeon]

Yeah, it just got me thinking how these distributors don’t have to do anything or be fearful. It is guaranteed business.

You're right. Businesses that are protected by politics (especially the government) can't fail.

 

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