For direct sales of products, the company requires an internal sales organization. Among the instruments of direct sales includes an independent sales force, your own e-commerce organization, branch offices, retail outlets and business offices.
Organization of direct sales
- Centrally, from the headquarters of the company
- Decentralized, for example, regionally
The decision is influenced by factors such as the spatial distribution of customers and possible regional preferences of customers (purchasing and consumption habits, etc.).
Direct selling is very cost-intensive. On the other hand, the entire trading margin – the difference between the cost of the product and the selling price – is available to the manufacturing company. Many “intermediate stations” on the way from the manufacturer to the end-user reduce the profit of the individual participating company or make the product more expensive. The distribution policy decisions must therefore be coordinated with the company’s objectives.