WEBVTT 1 00:00:02.370 --> 00:00:04.503 Welcome to Place, Part 2. 2 00:00:07.740 --> 00:00:10.230 I wanna talk now about what are the drivers 3 00:00:10.230 --> 00:00:12.000 of this decision? 4 00:00:12.000 --> 00:00:15.960 What factors should you take into consideration 5 00:00:15.960 --> 00:00:19.470 when you're thinking about should you use direct markets, 6 00:00:19.470 --> 00:00:21.300 should you use indirect markets, 7 00:00:21.300 --> 00:00:22.740 or should you use both? 8 00:00:22.740 --> 00:00:25.890 And when and under what circumstances 9 00:00:25.890 --> 00:00:28.713 is each a good fit for you? 10 00:00:30.570 --> 00:00:31.590 So first of all, 11 00:00:31.590 --> 00:00:34.740 you want to think about who's buying? 12 00:00:34.740 --> 00:00:38.400 Where and when do they wanna buy? 13 00:00:38.400 --> 00:00:39.960 Are they willing to wait? 14 00:00:39.960 --> 00:00:41.943 Do they want it right now? 15 00:00:43.950 --> 00:00:47.370 You know, if they can wait, mailing it might work. 16 00:00:47.370 --> 00:00:49.030 If they want it right now 17 00:00:50.100 --> 00:00:51.900 and they want it from you, 18 00:00:51.900 --> 00:00:55.293 you may need to do it via, you know, a farm stand. 19 00:00:56.700 --> 00:01:01.700 In many cases, the fewer customers that you have, 20 00:01:01.800 --> 00:01:06.240 more likely to buy, that you'll want to sell direct, 21 00:01:06.240 --> 00:01:08.400 and if there are many of them, 22 00:01:08.400 --> 00:01:12.840 then selling indirect might be a good reason, 23 00:01:12.840 --> 00:01:14.823 and think about why that might be. 24 00:01:16.950 --> 00:01:21.950 So both it takes more effort per person to sell direct, 25 00:01:23.340 --> 00:01:25.110 but you get more money, 26 00:01:25.110 --> 00:01:28.740 more of the overall final price 27 00:01:28.740 --> 00:01:33.240 that you get all of it when you go direct, 28 00:01:33.240 --> 00:01:35.403 so those are some reasons for that. 29 00:01:38.910 --> 00:01:42.183 So another way of thinking about that is, 30 00:01:43.440 --> 00:01:45.450 back to the idea 31 00:01:45.450 --> 00:01:50.450 of the commodity-differentiated product continuum. 32 00:01:51.300 --> 00:01:54.633 Things that are more differentiated, 33 00:01:55.710 --> 00:01:58.320 you're more likely to sell them direct. 34 00:01:58.320 --> 00:02:02.790 That if there's a lot of nuance, if they're alternative, 35 00:02:02.790 --> 00:02:05.820 you wanna be able to tell the story, 36 00:02:05.820 --> 00:02:08.880 as well as there will be fewer folks 37 00:02:08.880 --> 00:02:10.470 that will wanna buy that, 38 00:02:10.470 --> 00:02:14.970 so that's much more likely direct. 39 00:02:14.970 --> 00:02:19.383 Whereas, if you sell a more sort of standardized thing, 40 00:02:20.520 --> 00:02:25.380 it's probably not worth your time to sell it direct, 41 00:02:25.380 --> 00:02:28.080 that you need to be more in the high-volume business, 42 00:02:28.080 --> 00:02:31.443 and selling indirect would probably be best. 43 00:02:35.610 --> 00:02:39.010 One thing that works in favor now is that 44 00:02:40.950 --> 00:02:42.360 the internet and such, 45 00:02:42.360 --> 00:02:45.420 really helps you to find folks that, 46 00:02:45.420 --> 00:02:48.630 all those algorithms and stuff that if they like, 47 00:02:48.630 --> 00:02:52.290 you know, there's a lot of data about, 48 00:02:52.290 --> 00:02:55.110 well, if they like X, Y, Z, 49 00:02:55.110 --> 00:02:57.570 then they're gonna want what you sell. 50 00:02:57.570 --> 00:02:59.490 And if they don't, they're not, 51 00:02:59.490 --> 00:03:03.240 so, you know, there's a lot of ability 52 00:03:03.240 --> 00:03:05.520 to hone in and find folks. 53 00:03:05.520 --> 00:03:10.520 Think about too, what kind of infrastructure do you need? 54 00:03:11.120 --> 00:03:13.110 So think back to the farmer, 55 00:03:13.110 --> 00:03:16.200 if you're selling direct, you're gonna need boxes, 56 00:03:16.200 --> 00:03:19.410 you're gonna need tables, you're gonna need signage. 57 00:03:19.410 --> 00:03:21.180 If you're selling indirect, 58 00:03:21.180 --> 00:03:24.390 you're probably gonna need the delivery truck, 59 00:03:24.390 --> 00:03:25.773 a loading dock, 60 00:03:32.850 --> 00:03:34.473 pallets, and things like that. 61 00:03:36.750 --> 00:03:40.890 As well as what resources do you have? 62 00:03:40.890 --> 00:03:45.890 Do you have the human time to go and sell? 63 00:03:47.100 --> 00:03:49.080 Should their time be better spent 64 00:03:49.080 --> 00:03:51.690 selling to individuals 65 00:03:51.690 --> 00:03:54.930 versus to selling to accounts? 66 00:03:54.930 --> 00:03:57.180 Do you have the right technology? 67 00:03:57.180 --> 00:04:02.180 Can you receive and process orders 68 00:04:03.949 --> 00:04:05.580 from an indirect buyer? 69 00:04:05.580 --> 00:04:10.410 Do you have the equipment and infrastructure? 70 00:04:10.410 --> 00:04:13.530 Plus, how is your time best spent? 71 00:04:13.530 --> 00:04:14.670 Does it make sense 72 00:04:14.670 --> 00:04:17.520 for you to put a whole bunch of things into boxes 73 00:04:17.520 --> 00:04:20.850 and put labels on them? 74 00:04:20.850 --> 00:04:25.800 Or are you better off sort of managing the overall business, 75 00:04:25.800 --> 00:04:29.853 and maybe paying somebody to do that work for you? 76 00:04:31.530 --> 00:04:34.350 So the key things to consider are, 77 00:04:34.350 --> 00:04:39.350 how do you best meet the needs of your customers? 78 00:04:45.973 --> 00:04:47.675 Can they find you? 79 00:04:47.675 --> 00:04:50.403 Can you effectively reach them? 80 00:04:51.900 --> 00:04:55.320 What's the most efficient use of your time 81 00:04:55.320 --> 00:04:57.690 and your business' resources? 82 00:04:57.690 --> 00:04:58.687 So you want to think about, 83 00:04:58.687 --> 00:05:02.847 "Do I do it myself or do I find help?" 84 00:05:06.960 --> 00:05:11.960 Because it takes a lot of cost to do it all yourself, 85 00:05:14.160 --> 00:05:15.960 you have to distribute, you have to advertise, 86 00:05:15.960 --> 00:05:20.040 you have to sell, you have to do some customer service. 87 00:05:20.040 --> 00:05:23.010 So who does this best? 88 00:05:23.010 --> 00:05:25.200 What's the best returns to your time? 89 00:05:25.200 --> 00:05:26.910 Do you do it yourself 90 00:05:26.910 --> 00:05:31.910 or do you work with a partner that can do it for you? 91 00:05:33.600 --> 00:05:37.800 Note that if you do it yourself, again, 92 00:05:37.800 --> 00:05:42.750 all these tasks can be done in ways that you want them to, 93 00:05:42.750 --> 00:05:44.820 you have the control, 94 00:05:44.820 --> 00:05:47.010 and you are the best advocate 95 00:05:47.010 --> 00:05:49.623 and the best salesperson for your good. 96 00:05:50.730 --> 00:05:52.680 If you use an intermediary, 97 00:05:52.680 --> 00:05:55.890 yes, they do wanna sell your good, 98 00:05:55.890 --> 00:05:57.810 but they're not as motivated, 99 00:05:57.810 --> 00:05:59.730 they don't know about it as much, 100 00:05:59.730 --> 00:06:03.240 they're frankly, not gonna do as good of a job 101 00:06:03.240 --> 00:06:05.460 of selling that good, 102 00:06:05.460 --> 00:06:09.630 but most likely they can sell a whole lot more of it. 103 00:06:09.630 --> 00:06:10.710 So what's efficient? 104 00:06:10.710 --> 00:06:13.143 What's the best use of your time? 105 00:06:15.720 --> 00:06:18.900 When is it time to change? 106 00:06:18.900 --> 00:06:22.020 That many businesses find they start direct 107 00:06:22.020 --> 00:06:23.430 and then they sort of, 108 00:06:23.430 --> 00:06:28.430 either add or change completely over to indirect. 109 00:06:33.120 --> 00:06:36.270 And one way of thinking about it is 110 00:06:36.270 --> 00:06:41.270 if you want to engage a distributor or another partner, 111 00:06:43.050 --> 00:06:47.347 they're much more wanna work with you of, 112 00:06:47.347 --> 00:06:49.803 "I have very few that buy this, 113 00:06:50.640 --> 00:06:53.670 please, take it to consumers." 114 00:06:53.670 --> 00:06:57.720 Or, "I already have a base, I already have a brand, 115 00:06:57.720 --> 00:07:02.070 I have folks out there who want to buy, who are buying, 116 00:07:02.070 --> 00:07:06.030 I just don't have time, and the scope, and the resources 117 00:07:06.030 --> 00:07:08.280 to reach all of them efficiently. 118 00:07:08.280 --> 00:07:10.950 I'm bringing you the business, 119 00:07:10.950 --> 00:07:15.690 I'm bringing current customers, 120 00:07:15.690 --> 00:07:19.797 and together, we can help find future ones." 121 00:07:21.720 --> 00:07:22.920 That's the end of Part 2. 122 00:07:22.920 --> 00:07:24.273 Please watch Part 3.