This article is a part of our encyclopedia, and is editable by you. Edit ➜
What Is A Distributor Partnership?
Distributor partnerships refer to the creation of a mutually beneficial partnership with a distribution partner.
In this case, the distribution partner means any entity that has the right to market, cooperatively market, distribute, resell, or otherwise offer another party’s product or services.
A distributor partnership opens the doors for your startup to reach more customers and to **provide better service through distributors.
Some examples can be offering other brands coupons, vouchers, QR codes, etc.
Not only does this provide value to the customer, but it also provides value to both businesses as well. If a customer see's that their favorite brand is promoting another brand, they are likely to become a customer of both.
Distributor Partnership Key Takeaways
- By taking the distributor partnership approach, startups are unlocking significant value from distributors.
- It is essential to demonstrate a solid commitment to distributor partnerships by supporting their efforts in marketing.
- Some of the most successful distributor partnerships feature a foundation of solid marketing partnership.
- Trust is the basis for building a successful and mutually beneficial distributor partnership. Thus, stronger partners must nurture the weaker partners for the distribution partnership to succeed.
Understanding How Distributor Partnerships Work
Distribution partnership in its truest sense means that both parties share information and marketing goals.
Moreover, sales strategies are established and agreed to, and both parties know what to anticipate from the partnership.
Distributors help manufacturers by getting their products on the shelves of retailers and providing exciting opportunities and leads.
The manufacturers help the distributor by investing hours into research and providing high-quality products to the distributor to resell and earn a share of the profits.
Thus, establishing the right distributor partnership can help to boost your sales* in a big way.
Some of the benefits of establishing supplier partnerships include: - Lower costs when it comes to seeking out and negotiating fresh deals - Improved efficiency - Consolidated supply chain - Both parties achieve improved operations
Real-World Examples of Distributor Partnerships
1. CBD Unlimited
CBD Unlimited is a leading provider of hemp-based products around the US.
In 2019, CBD unlimited INC announced that the company had partnered with Gold-Coast Distributors to service over 1,200 stores with CBD unlimited product line.
CBD Unlimited and Gold coast Distributors initially launched their partnership in Manhattan and Brooklyn, New York. The partnership will help CBD Unlimited to increase its distribution channels and reach full-scale production capabilities.
Gold Coast owner, Mitch Suslak, said,
We have had very strong adoption of CBD products in our channel stores. I believe CBD products is a best-selling all-purpose product that our store customers will greatly benefit from. CBD Unlimited provides a full suite of products perfectly suited for distribution in this market.
Diageo is a global manufacturer and distributor of premium spirits, beer, and wine products.
Diageo has a number of products in its offering and has undertaken a number of acquisitions to become a leading manufacturer and distributor of alcoholic drinks.
As far as the marketing of the company’s products is concerned, Diageo understands that the distribution channel plays an important role in ensuring the end consumers get the original product of the company whenever they needed.
Thus, the company has established a solid distribution channel by partnering with strategic distributors across the globe.
Getting Started With Distributor Partnerships
- Ensure your product is ready for market
- Develop a marketing plan
- Find a partner who can help build your brand and not tarnish it
- Ensure the potential partner (distributor) understands why to care
- Provide samples and swatches to the distributor
- Ensure an easy and rapid supply of products
- Learn to listen and support the distributor
- Measure progress and adopt new strategies accordingly
Finding a potential distributor and establishing a lasting relationship built on mutual trust will help your business to achieve its goal. Apply the tips above to help you find a potential distributor.
Contributors to this article:
- Pat Walls, Founder @ Starter Story
- Samantha Walls, Head Of Content @ Starter Story
- David Gitonga, Writer @ Starter Story
Discover the best strategies of successful business owners
Join our newsletter and receive our handcrafted recap with the best insights shared by founders in Starter Story each week.
Useful, convenient, and free:
Did you know that brands using Klaviyo average a 95x ROI?
Email, SMS, and more — Klaviyo brings your marketing all together, fueling growth without burning through time and resources.
Deliver more relevant email and text messages — powered by your data. Klaviyo helps you turn one-time buyers into repeat customers with all the power of an enterprise solution and none of the complexity.