Ten day MBA Chapter 1 (4)

Forth, Distribution Analysis. This is critical! the choice of channel influences the price, and of course, the profit margins you will gain. There are many ways my product will reach the consumer, by mail order catalogs, internet ads. Commonly used channel intermediaries to the consumer are wholesalers, distributors, sales rep, sales forces, retailers. How do I set up the retail price, whosaler price and the manufator's price? For example, my canvas painting is $150 as retail price, so percent markup on selling price will be 50/150=0.33, then the distribution wholesale price should be 150*(1-0.33)=96, 96*(1-0.09)=87.36 So who has the power in the channels? it really depends what stage the products are. The new thing is about internet sell, from commerce, content, customer care and convert leads. I am still amazed by internet, and it must be a tech revolution to the world, it totally changed everybody's life and the business pattern. Now we see so many online store, and some people dreams to have their own online store. Internet definitely becomes one of main distribution source. Internet sale is powerful.