What's best, buying direct from the manufacturer, or through a distributor?

Which is best, buying your healthcare equipment direct or through a channel? 

There are a few models or paths you can take to procure your capital equipment through. What’s most important however, is that your final outcome is the right product, at the right price and with the right level of support, as though it could seem easily obvious that a direct deal is going to be your best, this may not always be the case…

What about buying direct from the manufacturer? 

The manufacturer of any product has a keen interest in you as the actual customer and a genuine passion for the product they have designed and developed over many years. The level of knowledge that can be shared with you will most likely surpass any other intermediate party that may want to offer the product. Manufacturers are great at what they are set up to do – to innovate, design and build quality products that will help improve your operational outcomes. While it might appear so, traditionally they don’t have a comprehensive, strong sales and service support system that covers every aspect of the market, from the smallest of clients to larger organisations, from inner city metros to remote regional locations. 

If the manufacturer decides to facilitate your sale directly, their prices cannot be substantially lower than that of other competitive products, as they still have to carry the extra costs of one-to-one sales representatives, live demonstrations and trials, transport and after sales support. If the pricing appears too low, it probably is. Generally, with a focused or narrow band of products, the level of infrastructure and number of personnel a manufacturer has, is much less than what is realistically required to adequately cover the nation in its entirety (such as one national office and a few sales staff). As you become one customer with a number, this may result in delayed or miss-managed demonstrations and trials or slow customer service, both in preliminary negotiations and after sales support. The larger and more distant a manufacturer is, the greater the risk may be for layered communication and service.

What difference can a distributor make? 

A reseller is normally based closer to you, a brand ambassador who is servicing a localised territory and contributing directly to your local economy and success. As they tend to offer a broad range of products into a smaller area, they are normally structured well, have good warehousing, a fleet of vehicles, with strong sales support and servicing teams. Their additional resources ensure your territory is supported well, from metro to regional locations. The benefit to you, can be a higher level of upfront sales interaction, personal delivery and very fast aftersales assistance. Freight and delivery costs can be better controlled, as mostly product is shipped to their city metro based warehouse and then personally delivered straight to your dock, at the time you need it, without excess packaging disruption and waste. While the distributor's level of product knowledge may not be as in-depth as the manufacturer, the close working, daily relationships ensure fast answers and close support. 

If a product distributor expands to a broader reach or national approach, this should be considered, as the success of their local structure could be weakened. This may cause a lack of the close support that you deserve and must have. The outcomes are much the same as an under-resourced manufacturer, where the assurance of good communication and service may be affected. Some national reseller models work on low upfront prices through a remote or online sales experience, which can result in unassembled, packaged deliveries for you to resolve, with slow or expensive after sales support.         

While the choice is ultimately yours, it is good to understand the pros and cons of your various procurement options, as a single good decision today will positively benefit your facility or team for many years to come.

Modsel is an Australian designer and manufacturer of specialist patient transport equipment who distributes into each State, Territory and Nation through an experienced and well established medical distribution network with 15+ year relationships. Your benefit is working with people who understand what’s happening in your area, delivering reliable local support and keeping your long term investment truly local.

You can always view our list of approved Modsel ambassadors on our website www.modsel.com