Sometimes Your Distribution Channel Really Is Your Secret of Success

When you start talking to some of today's biggest businesses you're going to hear a lot about their secret of success. Some companies will attribute it to clever management. Others will point toward innovative employees and prime, previously unseen opportunities in the market. If you were to take a look at Dell, Amazon.com and WalMart, three of today's most well known retailers, however, you'd hear a slightly different story. Yes, these companies can attribute their success to previously unseen market opportunities, but first and foremost they trace their success back to their highly efficient distribution channels.

Distribution channels are the routes your products take to get from point A (creation) to point Z (the consumer). Whether you're dealing directly with the consumer or you prefer B to B associations, your distribution channels are going to play a key role in your success.

Because your distribution channels provide the most direct and efficient link possible with your consumers it's important to make sure that you have them plotted out accordingly, with an eye toward both cost effectiveness and efficiency and quality and control. Why? Think of it this way. While at the beginning it may make sense for a company to handle its own distribution channels, over time that can become both expensive and inefficient. WalMart and Amazon are as successful as they are because they have developed an efficient way to get their products (through major manufacturers such as Sealy and HP) and to deliver their products (directly through their retail outlets and with major shipping providers UPS and FedEx).

It's important to choose companies whose image and vision jive with your own when you're establishing your distribution channels. Why? Imagine being able to buy a cost-effective Rolex at WalMart. The product would undoubtedly be popular, but it is equally as likely to lose a great deal of value in the eyes of your consumers-and once your products become devalued there is no going back.

So when choosing your distribution channels be sure to do your homework, evaluate the company's reputation and vision for the future, their concern for quality and their image before incorporating them into your distribution channel. Once you do you should be able to watch your profits fly and leave you wondering why you didn't think about handing control of your personal distribution off years ago.