At California Caster and hand Truck Company, we are often confronted with the challenges of competing directly against large manufacturers.  As one of the largest distributors of casters and hand trucks in the US, we tend to be partial toward all customers working through local (and national) distribution. While Larger customers may feel as though they will receive better pricing by eliminating a distributor, there are compelling reasons for having a distributor manage your business relationship. Let’s address a few areas that impact your decision process: What is the role of a regional a caster distributor? Caster distributors serve a very important role in the various industries they serve. Distributors (in general) buy and resell products readily available in the marketplace. Casters and levelers are usually mass-produced either overseas or domestically – and can range drastically in size, weight and capacity. For distributors to stock specific casters or levelers, they must be confident in their ability to sell these products in volume on a frequent basis. In addition to carrying a large inventory of casters, top distributors will also inventory related products to compliment casters and accommodate the needs of their customer. Why do large customers prefer working through distributors over manufacturers? The decision for a customer to work directly with manufacturers should not be a decision based strictly on price. While certain customers may enjoy minor savings due to high volume orders, they are sometimes at risk of losing perspective around which caster (or leveler) is right for the job:
  • Distributors can offer wide-ranging expertise due to relationships and experience with multiple manufacturers. When specific expertise is required for a project, we always work closely with the specific manufacturer to answer any/all technical aspects of the project.
  • Distributors like California Caster usually have more customer service/sales personnel available to manage inventory, fulfillment and to provide guidance on every aspect of your project.
  • Manufacturers tend to promote their own brands exclusively  – regardless of whether it’s the optimal choice.
  • Manufacturer reps have expertise limited to just their product line. This tunnel vision often places the customer at a disadvantage.
  • Distributors can be more nimble and responsive to changes in the marketplace.
Conclusion: There is no question that “price” (cost) is an important consideration when determining who you should work with on a long term basis. Also, the illusion created by the internet is that everyone is an expert – and everything can be purchased at the lowest possible cost. I suggest that you be extremely cautious in your decision process. Ask questions and interview companies and their sales staff around issues important to you. You should be very comfortable asking direct questions before moving ahead with any distributor or manufacturer that will impact your business. While the perception may be that your costs will decrease when working directly with a manufacturer, I would argue that top distribution companies will find many ways to recoup any minor percentage increase to the price. One way California Caster adds value (thereby reducing your costs) is to provide customers with multiple alternatives to any given project. Some project applications may require higher quality casters while other projects could be solved by purchasing a more economical solution. We represent a wide range of manufacturers for this reason – so that you are not spending too little or too much on any given project. California Caster has been around for almost 70 years. We will find products and solutions that are right for you. Will manufacturers do the same? Greg Williams