I am a middle man. I run a business that sells HVAC products and equipment to contractors. We do not do any retail.
In my world, it is common for the manufacturer of the equipment that I am selling to set up factory direct stores that welcome contractor business. It makes it interesting, to say the least. Imagine you are doing your best you can to sell a company’s products, then they set up a store down the street a few blocks and sell directly to your customers. It may sound weird to some, but it happens all the time in my industry.
We sell service, delivery, no damage, taking care of problems, and basically do everything that the factory direct stores can’t, or won’t. The relationship is more complex than this, but for this post that is all I need to explain about it, as that is the nuts and bolts of it.
The huge problem with this situation is that as a reseller, you are obviously at a price disadvantage to the factory direct store. There is only so far you will go with this line. That is fine with me, you either take it or leave it. But something interesting happened a few weeks ago. I received a call that this particular manufacturer was shutting down its operations in my state. That is awesome news for me.