By Jim Hill August 22, 2014
The issue of saving money on any manufactured item is really very simple: The more middlemen that are involved in the process, the more the item gets marked-up.
The normal path any item takes to the final consumer is from the manufacturer to the Stocking Distributor, to a Wholesaler, to a Retail Store, and finally to the end user.
Each of these middlemen must increase the price by enough to cover his costs and add his profit.
Consider an average mark-up of 20% at the Stocking Distributor, another 20% at the Wholesaler, and 40%-50% at the Retail Store. This translates into roughly doubling the cost of the manufactured product.
If there was a way to remove or reduce the middleman mark-up the end user could save some serious money.
Well, there is a way to remove the costly middlemen from the market chain: the Internet.
To be honest, buying directly from the manufacturer from his website won’t cut the retail price in half. This is because some of the functions handled by Wholesalers and Retailers must now be handled by the manufacturer himself, and these functions create a cost to the manufacturer.
For instance, the manufacturer usually ships to very few wholesalers but in very large volumes. When selling from a website the manufacturer must now sell his product in much lower volumes and to many more users. Both lower volume per shipment and more total shipments have an added cost to the manufacturer, and he must pass this added cost on.
There are a few other cost adders that the manufacturer must absorb, like adding additional customer service and order processing employees.
These added expenses add cost but nowhere near the 100% mark-up the long supply chain added.
The bottom line is that retail stores hate the internet and go to great expense to keep their retail customers from finding which manufacturers sell to the public through websites.
Why would Home Depot, Lowes, Walmart, etc. spend many millions each month on Google Advertising to get their websites listed at the very top of Google’s search result pages? The answer is that they don’t want you to look at the organic (non-paid) search results where the actual manufacturers webpages will offer the same products at 20% to 40% less.
CabinetDoors.Com is one of those manufacturers. We sell our extensive lines of Kitchen Cabinet Doors direct to the end user at about 30% less than the same door available from the big-box stores. Not only cheaper but with a 10-day delivery as apposed to 4-to-6-weeks delivery through the retail supply chain.
Another interesting aspect of buying direst is that the product you receive from the manufacturer is not only less expensive and delivered much faster, it’s usually the same product you would receive from the big-box retailer. Where do you think the big retailers get their products? They certainly don’t make them; They don’t make anything…They are just another middleman in the retail chain moving the manufacturers products to the end user.
So if you are ready for new or replacement kitchen cabinet doors, why not save some money and speed-up the process by looking at CabinetDoors.Com.
The Internet is here to stay and it is presenting end users with a choice they have never had before; a choice of keeping with the old method of supporting the supply chain, or by-passing the chain and moving into the future of manufactured goods marketing.