Here are common reasons for a business to establish new distribution methods for their product or service.
- If your customersâ€™ buying patterns change. As an example, companies that traditionally sold door-to-door had to find new methods as more women work outside the home.
- If your market is expanding, geographically or another use has been found for the product, find additional ways to reach these new customers. One option is expanding from company owned stores to specialty retailers.
- If you have new competitors, theyâ€™ll likely develop new distribution methods. As an example, consider how the U.S. Postal Service is evolving due to competition from UPS, FedEx and mailing centers.
- If new methods of distribution become available, such as the Internet, are they cost effective for you?
And donâ€™t forget, the customer will likely expect you to maintain records of all their purchases from different methods and receive an appropriate discount based on total purchases.