10 Hard Lessons in Hardware Distribution

Dis appointment - knowing it takes several lifetimes to contact a retail or distributor buyers - online/offline/elsewhere in the universe. !!ACTION ? - Start befriending these people NOW

10 Hard Lessons in Hardware Distribution

Dis order - An order for a product comes on a PO (purchase order) document, with lots official information, terms and conditions. Nothing else is an order ! ! ACTION ? - Do nothing until you have an official PO document.

10 Hard Lessons in Hardware Distribution

Dis location - Stock in wrong place - 500 widgets sent to warehouse in USA - you get order for 100 from France. Onward ship to France wipes out already shrinking margin. Delays in customs incur more cost and plenty frustration. !!ACTION ? - Start in one geographic market; sync with online fulfillment.

10 Hard Lessons in Hardware Distribution

Dis proportion - production run (MOQ 50k) too big for early demand (5k) Distributor gets over enthusiastic, but of course it’s your fault. Guess who pays ? ! ACTION? - Start small - max out pre-orders - max out DIY fulfillment - appoint one distribution partner to store/ship product globally.

10 Hard Lessons in Hardware Distribution

Dis jointed - adult version of Dis located, now with multiple distributors in multiple markets, incurring multiple costs from diverse rates of sale, currency chaos, and service expectations. Broken legs are less painful. !!ACTION ? - Know your key markets, build distributors trust, grow into them, easiest rather than biggest first.

10 Hard Lessons in Hardware Distribution

Dis advantage - create a UDP (unique distribution proposition). !ACTION ? - forensically examine shipping trail; product weight, shape, size, routes, timing, shelf life, power/peripherals, packaging - the lot ! !BONUS: becomes Dis armament when u exploit UDP v your competition & reap the rewards.

10 Hard Lessons in Hardware Distribution

Dis neyland - go there and model your customer service on it. You need CS to support your distribution effort. It costs money you didn't budget for. !!ACTION ? - Assign customer accounts to individual founders, even if they're not "the sales guy". Actually they ARE !!

10 Hard Lessons in Hardware Distribution

Dis traction - customers and CFOs need tracking updates; metrics like days or value of stock in warehouse / stock turn pa / unit cost to ship / etc !!ACTION ? Get a measuring system NOW

10 Hard Lessons in Hardware Distribution

Dis play - the fun (and yet more expense) of making product visible, on or off line - the Place in the 4 Ps of marketing. !!ACTION ? - Know your customers intimately. Know your distributors/retailers even better

10 Hard Lessons in Hardware Distribution

Dis earnment - just when you think you've delivered and earned payment you still ain't getting paid for months. "Issues" emerge now like extra costs for badly labelled packaging, extra storage time / space, bank / exchange fees, cheque-signing staff on holidays, & worse. !!ACTION ? Start asking questions much much earlier