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OEM & Finding Distributors

by mxitman
2 replies
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So I'm currently in the process of developing a few physical products: Generator To Furnace Transfer Switch and a Heatpump Transfer Switch, for powering with portable Generators.

As the manufacturer I plan on selling directly to my customers but eventually may prefer to sell through a distributor.

As they are electrical related products should I look for an electrical distributor and has anyone gone through this process?

What do I look for?

Thanks
#distributors #finding #oem
  • Profile picture of the author OnlineStoreHelp
    Given that its an electrical product you want to make sure you get it UL approved before you go to market. Without this certification, you open yourself up to a ton or risk. That being said, if you develop the product, get it UL approved, I would hit a trade show within your industry. For 400 - 800 bucks you will be put in front of everyone in your industry and many are wholesale only so its mainly buyers and wholesalers.
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  • Profile picture of the author redlegrich
    The trade show is a great idea. That will get you exposure to the right folks. Be sure to have all of your terms and conditions sorted first. Look at other manufacturers and find out what they do.

    Now this industry in some aspects is well behind the times in regards to the online world (not totally for sure). You should also consider an affiliate sales program as well. Personally I'd do that first as it is totally performance based. Dealing with a disti you will have credit issues (and cash flow), returns, training and so forth. Build enough margin into your MSRP to support both a traditional distributor, reseller channel as well as affiliates.

    There are plenty of industrial databases out there to find distributors. That industry segment also uses a lot of manufacturers reps as well so be sure to check that out too.
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