Wholesale vs Direct

[niftyg]

One decision I have stumbled upon is whether to sell my product direct to consumer, or wholesale to businesses. They both have their own advantages disadvantages.

Direct to Consumer:

• The product price can be kept much lower. I can sell my high quality product at a much lower price than most brands do, which can make for a major selling point.
• Everything can be kept in house. If we get big enough we can hire somebody to do the shipping, or even fulfillment.

Wholesale:

• We would be selling many units at a time. Less logistics to worry about.
• MSRP would need to be nearly double what I would sell it for on my own to compete in order for us both to make a profit.

So I guess it comes down to:

Marketing to consumers vs marketing to businesses.

I'm really stumped on this and am having troubles with how to proceed.

You wonderful peoples 2 cents would be mighty appreciated!

 

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