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Distribution is the King of all Industries

Distribution is defined as;;

• the action of sharing something out among a number of recipients. • the way in which something is shared out among a group or spread over an area. • the action or process of supplying goods to stores and other businesses that sell to

consumers. That being said all industries have some form of distribution of services and/or products. Some corporation makes it, another distributes to wholesalers and then to retailers. We consumers consume it daily, weekly, monthly, annually or once in a lifetime. I know you are thinking what do I consume once in a lifetime? Funeral coffins are one example. HA HA! Historically distributors could easily obtain a monopoly purely by the manner in which consumers can access their product or service. Think of television for instance. For decades television networks were limited in quantity. Fast forward to Cable and Satellite TV and now consumers can select from a high variety of networks. Can you truly engulf 200 channels each month –really? The ability to add more selection is great for the consumer but creates competition amongst networks. They are all vying for our attention and loyalty. Per Nielsen – the average American watches approximately 153 hours of TV every month at home, a 1.2% increase from last year. (http://www.nielsen.com/us/en/insights/news/2009/americans-­watching-­more-­tv-­than-­ever.html) Recently the NFL has seen a decline in viewership via TV, Cable and Satellite. Many are blaming the recent elections and other competing sports such as MLB’s World series. But my view is perhaps alternative options such as Mobile Apps and the Internet are the real culprit. My 13-­year-­old son is on his mobile 2+ hours per day for media content. Not the NFL network and not ESPN. Hey NFL your distribution changes to multiple networks and media outlets have diminished your broadcast ratings. This is not rocket science. You have a cable network. So exploit that like a real network = to ABC, NBC and CBS. Distribution can kill or expand your business. Think of the Auto Industry. The big 3 depend on too many dealerships. No direct sales except to celebrity consumers. Tesla is now pushing a non-­dealership distribution model. To the dismay of dealerships – this change in sales distribution is a pure disruptor. Sears for years only distributed their own white label appliances to consumers. Then they suddenly realized name brand appliances were the way to go. Their monopoly of catalogs and direct to consumer sales was disrupted by the Internet and the American infatuation with name brands.

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The music industry was disrupted by distribution changes. Big box and industry bricks and mortar stores were closed down thanks to the Internet. Oh yes and iTunes did not help. A physical record, cassette, CD or DVD became obsolete with digital downloads. The fate of Blockbuster was ultimately due to distribution. Not just how great Netflix and Cable providers are in their prices and usability. In closing, think of this – does your company distribute other value points to your customer beyond your product or service? Meaning are you providing additional value to your customers beyond a purchase agreement and sale? Distribution of vital or helpful information can go a long way. For example, I own a Honda Ridgeline truck. There is a Ridgeline owners club that distributes forums to owners. The information in their forums are so valuable to me as an owner. Honda would be stupid not to provide value to the administrator of that site when applicable. Not to mention FREE information is great. Your social media campaigns should not only be geared to how great you are and new sales deals. It should spur other elements about your product or service. Let consumers/customers give input on your failures and triumphs. Bottom line if you do no create a product or service – then distribute it or become a valued member of the community that provides value to all audiences;; Creator/Manufacturer, Distributor and Consumer! Derris Boomer Owner of Boomer Technology Group, LLC.