"Manufacturer Direct" with eCommerce Delivers Huge Benefits

Another exciting benefit with Manufacturing eCommerce Strategies includes selling directly to the end-user. Yes indeed, “Manufacturer Direct!”

So, what crosses your mind when you hear “Manufacturer Direct”?

Huge savings by skipping the middle man. No additional costs, fees, or added margins.

Essentially, dealing directly with the folks who actually hand-crafted your product.

Both the manufacturer as well as the consumer greatly benefit from “Manufacturer Direct”.

Well, eCommerce certainly presents that exciting opportunity for a manufacturer to sell directly to the end-user.

Most importantly, eCommerce opens up this new avenue of revenue, effectively and efficiently.

Let’s further explore.

No Middle Man

The first and the most obvious benefit includes that all additional costs and add-ons are eliminated when selling direct.

Especially since no middle man in the picture keeps prices low.

As a result, think about all of the overhead costs and staff involved when a retailer makes a purchase from a manufacturer.

Purchasing agent
Receiving department
Warehousing staff
Utilities
Insurance
Inventory management system
Shelving
Picking the order
Packing the order
Shipping the order
Carrying a receivable
Accounting
Finally, the president of the company hoping to keep their membership to the local golf course

All of that additional overhead requires significant added margins to the end-user.

Skipping that step pays big dividends for you and your customer.

Increases Competitiveness with Low-Cost Imports

Going “Manufacturer Direct” provides a huge competitive advantage while keeping prices as low as possible.

For years, the reality of U.S. manufacturers competing with cheap imports kept becoming less and less realistic.

In many cases, raw material alone costs were higher than cheap imported finished goods. Even with all of the broker fees and transportation costs.

Unfortunately, this has been a long sad trend for U.S. manufacturers.

However, with new trends such as tariffs and foreign labor costs increasing, the playing field looks more attractive.

In addition, with imported products, multiple hands touch that product adding an additional cost each time.

Therefore, companies that struggle competitively with low-cost imports now potentially create a level playing field by selling “Manufacturer Direct”.

Shortens Supply Chain

Next, skipping the middle man also ties right into shortening the supply chain. Hot off the press. The product is produced and shipped right out to the person using the product.

The product isn’t on the ocean Freightliner in a container somewhere in the middle of the Pacific.

“Manufacturer Direct” invites the opportunity for the manufacturer to ship the product quickly and efficiently to the eagerly waiting customer.

With a renewed sense of urgency for domestic products, while also maintaining a healthier flow of goods, “Manufacturer Direct” shortens and strengthens the supply chain.

Market Research: Feedback for New Product Ideas

With “Manufacturer Direct’, the amazing opportunity to engage directly with the end-user also offers instant market research at your fingertips.

Communicating directly with those who use or consume your product delivers incredibly valuable information.

This plays a similar role and along the lines of a made-to-order restaurant.

If people keep ordering something, not on the menu, maybe it’s time to expand or add that item to the menu.

However, staying ahead of the customer plays a critical role in your success as well. The ability to predict or anticipate solutions to customer problems certainly provides a winning edge.

Henry Ford famously stated, “If I had asked people what they wanted, they would have said faster horses.”

Yet, for those of us that do not possess the uncanny business acumen of Henry Ford, we need to communicate with customers. Frequently.

The key to success? Listen!

“Manufacturer Direct” offers the incredible opportunity to not only listen but also react.

Even welcome complaints. The saying, “Complain TO me, not ABOUT me”, pays huge dividends.

Honest feedback from those painful complaints helps you improve your products and services.

Strive to be the best!

Customers will guide you on a path to The Promised Land (shout out to Bruce Springsteen).

Flexibility

Customizing products also lends an enormous competitive advantage.

Especially when a customer can purchase customized products that fit their exact specifications.

Being the manufacturer creates an environment of flexibility to accommodate and respond quickly.

With the menu analogy, if a customer requests changes to their meal, how quickly can the kitchen react?

Hold the pickles and tomatoes? No problem.

Add onions and cucumbers which are already in stock? Absolutely.

Being agile and flexible separates you from the competition.

Providing added value to your products and services creates that unique customer service that they cannot find elsewhere.

Control Your Brand

Additionally, “Manufacturer Direct” with eCommerce allows you to control your brand.

Especially with fighting against cheap knock-offs for foreign competition.

Dealing “Manufacturer Direct” also helps build your authority and trust.

Authority and trust certainly play as constant buzzwords that every business speaker and consultant preach.

However, building trust just can not be overstated.

Building your business reputation with eCommerce takes time, energy, as well as intentional effort.

Wrapping It Up

Thank you for reading this post.

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