Why Buy from a Distributor?

When buying lab supplies and equipment, a common consideration is whether or not you should buy directly from the manufacturer, or if you should buy from a distributor. Let's explore the pros and cons of each. 

First of all, what is a "Manufacturer", and what is a "Distributor"?  A "manufacturer" is, as the word implies, a company that owns the factories in which the goods are produced. However, this is many times NOT the case; for instance, a company such as Anker Electronics doesn't own the factories that produce their speakers, rather they find a factory that makes a speaker, give the factory their own designs, and the factory makes them. So while Anker can be considered the "Designer" and the "Seller" of the product, they aren't technically the "Manufacturer". The same is true for laboratory supplies and equipment: you'll have a single product with 5 different brands, all bought from the same factory, but they'll have a different label slapped onto them in order to build brand recognition and reputation. However, even though a company that does this doesn't actually MAKE the product, a company that engages in a practice such as this is colloquially termed "Manufacturer" of the product, so we will use that term here as well. 

A "Distributor" on the other hand is a company that does NOT make the product in any way, rather they just warehouse (or drop-ship) the products to the end-users, the customers. More commonly referred to as a "distribution channel", these companies take the headaches involved in mass-logistics, customer service, and the actual storefront and selling of the products from the manufacturer. So using Anker as our example again: they may sell on their own website, but they've been using Amazon as their distribution channel for around a decade now. 

Using a Distributor is advantageous to the Manufacturer, because they don't have to deal with the customers or the outreach (sales + marketing) that's involved in making the sales. The Manufacturer need only "sell" its products to, say, 20 Distributors, and those Distributors in turn sell to 10,000 customers each. So by using the distribution model, the Manufacturer makes less money on the sales (because the products have to go through another set of hands, but it's a LOT more efficient, because they only need to make a handful of "sales" to the Distribution companies, which are exponentially profitable with minimal (usually mostly logistical) input and effort on the part of the Manufacturer after that. 

Some Manufacturers opt to BOTH sell their products directly to the customers, as well as use a Distribution model; this can be termed a "mixed-model sales channel". This model allows them to both take the higher profits associated with selling direct-to-consumer, as well as the Distribution model "making them sales in their sleep".

So the advantage of buying directly from the manufacturer are that you'll be able to get a better price, and possibly better service if the Distribution company's service sucks. The disadvantage is that you'll have to buy from a whole repertoire of companies in order to get what you need, which in most cases requires lengthy "Vendor Forms" to be filled out, lots of red tape, and a ton of searching online for who the actual manufacturer of a product is, and (in the event they do sell direct), making a distinct purchase with each one.

The advantage of buying from a Distributor can be seen, then: you can take care of all or most of your purchasing via just a single company, and you can usually get better service, including but not limited to product recommendations based on your past purchases, expert advice on products across the gamut, and faster response times. And you can also buy certain products that are sold by Manufacturers who refuse to sell direct. The disadvantage is that you may pay a higher price (sometimes Manufacturers don't want the sale that badly), but as all growth-minded people know, "you get what you pay for"; you're paying extra, but you're getting all those extra points of service. 

(PLUG: now, if you buy from Maxi Scientific, you'll get an AMAZING price right off the bat, as well as service that rivals the Ritz-Carlton!)

So which should YOU buy from when getting stuff for your lab? It depends: if you're buying a costly piece of capital equipment (such as a Mass-Spec, which can run you $400k-$1.5M apiece), it usually makes sense to go directly to the company that makes it, as they are the subject-matter experts, and can give you the best price. Anything that costs less money than that and/or is not as highly-technical as that would make sense to buy via distribution, as you'll get all those advantages outlined above!

And even with capital equipment, sometimes you should just buy via your Distribution rep you know and love, because it'll incentivize them to give you all that more attention and the elevated level of service that they're known for.

Got any questions or would you like to share your comments/thoughts? Email us at clientservices@maxisci.com!