iii Order size It is economically feasible to sell directly to customers who

Iii order size it is economically feasible to sell

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(iii) Order size – It is economically feasible to sell directly to customers who can buy their goods in large quantities. The producers would use intermediaries to sell customers who buy in small quantitie(iv) Unit value of the product – Products of high unit value can be distributed directly to the customers due to higher risks they are likely to be exposed to if longer channels of distribution were used(v) Perishability of the product – Products that are subject to physical or fashion, perishable must be sold through short, fast channels hence such goods mostly go directly to the customers(vi) Technical nature of the product – Goods of highly technical nature are normally sold directly to the customers as the seller ought to provide considerable pre-sales and after sales service(vii) Financial resources – A producer who is financially strong can afford to distribute directly to consumers(viii) The intermediaries- Different intermediaries perform different functions, hence a firm should select the channel that would be convenient to it.(ix) Competitors – A firm wishing to have its produce compete directly with that of a competitor, would select a channel that the competitor uses and vice versa(x) Environmental factors – For example the government laws and regulations may prohibit manufacturers or their own outlets from selling directly to consumers i.e. appointments of the independent distributors may be called for. 3.Circumstances under which a producer sells directly to retailers:- - Where retailers have their own transport facilities- Where the government policy required that - If the commodity is perishable and should take the shortest time to reach the retailer- Where the retailers are closer to the producers- Where there are large scale retailers capable of buying in bulk from the producer.-Where the producer has his own retail out lets- Where the producer would wan to keep down prices- Where the goods are technical in national hence require technical advice- Where the retailer have adequate storage facilities
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4.- Nature of production and its value-The nature of the market for goods in question-Distance separating producers-Cost of transport-In availability of intermediaries-Resources and size of the firm-Availability of the channel-Government policy-Competitors-Nature of the manufacture5.Six circumstances a manufacturer may prefer to sell goods directly to consumers;-Where goods are expensive for middle men to stockWhere goods are technical in nature and producer may want to have direct contact with consumersWhere producer has his own retail outlets and are distributedWhere the market is localized and producer is close to consumersWhere goods are perishable and producer wants to deliver them fast to consumersWhere the goods are produced according to customers specifications or special goodsWhere the producer requires immediate/direct feed back and the costs are cheapWhere producer is producing a small output hence no need for middle men
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