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It's Back: The AV Distribution Model

The Final Sayye by Gary Kayye By Gary Kayye, CTS

As someone once said, everything goes full-circle.

When I first got into the ProAV market, true, traditional AV distributors dominated the distribution channel. What are true AV distributors? Well, unlike many, many dealers in Europe and Asia that call themselves distributors but are really dealers in disguise, traditional distributors don't sell direct. Distributors in the traditional sense of the word are companies that buy in bulk, stock inventory and ONLY sell to dealers -- who sell to customers. But, in the late 1980s and 1990s, the distribution channel virtually disappeared and every manufacturer went "direct" via the dealer.

But now they're back.

Distributors like Electrograph, Stampede and ActiveLight are growing exponentially compared to the market growth. And, manufacturers using them are happy, dealers buying from them are happy and even accountants at dealerships are really happy. Why? Well, for one, they have basically solved the distribution chain cash-flow problems that have plagued many dealers as of late. But, more importantly, they are stocking product and providing technical and sales support better than many of the manufacturers they serve.  

And, their presence will grow. 2005 will be a year where many manufacturers will re-think their distribution strategies. Manufacturers will consider using distributors to drive product sales and those that do will begin to enjoy (and even depend on) all their newly freed up resources - resources that can be put into product development, for example.


Gary Kayye, CTS is Chief Visionary at Kayye Consulting, Inc., a Chapel Hill, NC-based marketing consulting firm that serves the ProAV and Home Theater markets. In addition to strategic marketing consulting, Kayye Consulting, Inc. is also a training development company. Gary can be reached via e-mail at gkayye@kayye.com or through his Web site at www.kayye.com.

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Gary Kayye, CTS is Chief Visionary at Kayye Consulting, Inc., a Chapel Hill, NC-based marketing consulting firm that serves the ProAV and Home Theater markets. In addition to strategic marketing consulting, Kayye Consulting, Inc. is also a training development company. Gary can be reached via e-mail at gkayye@kayye.com or through his Web site at www.kayye.com.
Related Keywords:ProAV market, AV distributors, distribution channel, manufacturer, Electrograph, Stampede, ActiveLight, Gary Kayye

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