Selling – Direct or Indirect?
Any equipment manufacturer/supplier would prefer to supply his machines in the simplest way, i.e., directly to the end user company. The profit margin is more, the payment is safe and servicing of the equipment is easier, as there is less mishandling by the operators. On the other hand, when selling to the service providers, the payment can be delayed and there can be equipment breakdowns because of handling by unskilled workers. However, selling to service providers makes more business sense as the market is wider and many equipment suppliers do prefer this route. Therefore, the question here is how an equipment supplier can manage to continue supplying machines to service providers and yet get the payment on time.