Regional Product Distribution

Regional distributors move products from manufacturers to retailers and businesses within geographic territories.

With manufacturers needing regional reach without direct sales forces, distribution generates revenue of $200,000-$700,000 with 15-30% margins on wholesale markups.

The business requires warehouse space, inventory investment, delivery fleet, sales relationships, and working capital.

Services include inventory stocking and warehousing, sales and account management, delivery and logistics, product training and support, market development, and payment terms to retailers.

Revenue through wholesale markup typically 20-40% over manufacturer cost.

Success factors include exclusive territory agreements with manufacturers, building strong retailer relationships, inventory management and turns, providing superior service and support, and choosing growing product categories.

Marketing focuses on manufacturer partnerships and retailer sales.

With regional distribution essential for market reach in 2025, distribution offers logistics opportunities moving products to market.