What happened to Modz Distrubutions?
08-16-2007, 02:43 PM
#16
Administrator
Join Date: Feb 2006
Posts: 16,855
^ IMO it has to be rough to run, let alone start up and then run, a distribution house like that without a high turnover brand name. DD, RE, and USAmps may all make nice product but they're not exactly high volume.
That and if you've seen the owner's car you may wonder where the operating capital was going... That's just a theory though
That and if you've seen the owner's car you may wonder where the operating capital was going... That's just a theory though
09-19-2007, 07:50 PM
#17
50 Watt CAFz'r
Join Date: Feb 2006
Posts: 125
Good profitable reps are hard to come by ( I don't mean that anyone who puts an effort into representing a product can not become good but ones with a dealer base that knows and trusts them is what I'd consider in this industry a good or profitable one)
Try and compete with great distributors like Trends or gem sen or automobility, they have buy power( offer to buy up old stock to get there lines in immediately, good reps as said before and advertising POP's and all there ducks in a row)
Distributors make there money on larger sales not single ones and that’s how they can turn a profit while taking a lesser margin, dealers are less inclined to stock specialty brands making the order thus smaller for once again specialty brands.
Distributors are expected to take on warranties ( abuse )/ shipping(quadrupled ) and terms( longer 30/60/90< crazy) for dealers as well providing reps and tec support. < add on advertising nation wide and shows.
Right now in this industry we need 1 or 2 good rep firms. After costs a good rep firm will out profit a distributor no doubt in my mind.
30 new brands appearing each year( most fail but they take a chunk out of the market none the less and end up on the internet for very cheap )
You need a home audio line to carry you through the winter months, command starts are all eaten up by http://www.automobilitydistribution.com/ and they have all the contacts to keep it that way. < D brands I see as well. Duel is walmart with Sony and pioneer I see so its only getting better and better.
There’s a very steep learning curve in this market and it changes fast as well, so the smaller less experienced distributors falling off isn’t a surprise. Lots of company’s took huge hits last year but had the know how or capital to take it at least for now..
thats some of my take on it anyhow, not sure what the rest figure.
Try and compete with great distributors like Trends or gem sen or automobility, they have buy power( offer to buy up old stock to get there lines in immediately, good reps as said before and advertising POP's and all there ducks in a row)
Distributors make there money on larger sales not single ones and that’s how they can turn a profit while taking a lesser margin, dealers are less inclined to stock specialty brands making the order thus smaller for once again specialty brands.
Distributors are expected to take on warranties ( abuse )/ shipping(quadrupled ) and terms( longer 30/60/90< crazy) for dealers as well providing reps and tec support. < add on advertising nation wide and shows.
Right now in this industry we need 1 or 2 good rep firms. After costs a good rep firm will out profit a distributor no doubt in my mind.
30 new brands appearing each year( most fail but they take a chunk out of the market none the less and end up on the internet for very cheap )
You need a home audio line to carry you through the winter months, command starts are all eaten up by http://www.automobilitydistribution.com/ and they have all the contacts to keep it that way. < D brands I see as well. Duel is walmart with Sony and pioneer I see so its only getting better and better.
There’s a very steep learning curve in this market and it changes fast as well, so the smaller less experienced distributors falling off isn’t a surprise. Lots of company’s took huge hits last year but had the know how or capital to take it at least for now..
thats some of my take on it anyhow, not sure what the rest figure.
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