#Immediacy on speech making

As someone once said, 'Distribution is all about putting the product or ...

As someone once said, 'Distribution is all about putting the product or service where the customer wants it.' It is for this reason that building societies vie with each other for convenient high-street sites, large London law firms have offices abroad, and Lloyds insurance brokers link up with 'producing brokers' in other countries. All of these service businesses place their 'product' within easy reach of the customers, and the cost of doing so must be an integral part of business planning The manufacturer, the wholesaler and possibly even the retailer will be more concerned with the transport and storage costs involved in placing their tangible products in customers' hands. Some alternative considerations The basic consideration from which all distribution planning is devised is the speed of delivery required. If competition or the nature of the business or product demand a same-day service, then a certain level of cost related to a minimum level of resources vehicles, etch will be unavoidable.

If, however, a delivery time of, say, 2 weeks, is entirely acceptable, then resources and costs can be geared accordingly. The businessperson will almost always face a conflict in that while he wants to save money and service to customers costs money he must always provide a level of service as good as his competitors.

The business that fails on service loses sales.

No sales means no profit and, hence, no business. The 'trick' is to identify clearly and realistically the standards necessary and then find the most cost-effective way of meeting the standards. Fortunately there are a number of options open to the cost-conscious entrepreneur. Be realistic Nothing is easier, or more dangerous, in business than to allow 'old partners' tales' or emotion to dominate thinking One of the worst old partners' tales was trotted out by Ralph Waldo Emerson when he said, 'If a man can make a better mousetrap than his neighbour, though he builds his house in the woods, the World will make a beaten path to his door' This may have been true in earlier days before mass-production, mass-communication and mass-competition.

It is unlikely to be true today and cannot be relied on however good the product.

An example of the 'emotional approach' to distribution is illustrated by the fallowing cautionary tale: Ian, who jointly owned and managed a small engineering business with his brother, insisted that top priority should be placed on speedy delivery and adopted a 'blind policy' of a maximum 2-day delivery time. He was convinced that this must be a 'good thing'. No expense was spared including, on one occasion, air-freighting a parcel to the Isle of Man.

The result, apart from higher cost, was only a very limited improvement ...

The result, apart from higher cost, was only a very limited improvement in service since the total elapsed time from the moment that the customer mailed his order to producin... read more

I found an elderly, battered vehicle which was cheap and calculated that ...

I found an elderly, battered vehicle which was cheap and calculated that even with tax and insurance I would

These fixed costs are: • Lease or depreciation costs • Tax • Insurance Garaging In ...

These fixed costs are: • Lease or depreciation costs • Tax • Insurance Garaging In addition, variable costs will be incurred depending on the mileage covered.

These variable cost