Distributor Relations

One of the most common questions I am asked is, “Why can’t I get a better price by going direct to the Manufacturer?” There are several reasons.

Krueger uses distributors as it’s primary sales force. We are small 15 person company that manufactures a quality product with a low price point. There is no room in the pricing structure for us to send out traveling salesmen all over the country/world to sell our product. We rely on distributors to show our products at their tradeshows, in their catalogs, on their shelves, and on their websites. We also rely on distributors to service and install our product.

In recognition of this need for our distribution, we do all we can to protect our distributors. Our list prices are set high enough that our distributors can always save the end user money. We do our best to funnel as many sales to our distribution as possible. Our online store has a link to our Distributor page on every single page leading up to the purchase, and a statement letting people know they can save money by going that route. Our sales people also refer phone calls to distribution as well. We offer wholesale distribution a “no minimum” policy and free drop shipments so they can fill custom orders without increasing price or lead times.

All of these statements inevitably lead to another question. “If you are so committed to supporting your distribution, why offer direct sales at all?”

Some direct sales are necessary in order to keep customers. If it is to difficult and complicated to by from your company, they will go elsewhere. Also, the web store greatly enhances our presence on the internet, and there is one web statistic that stands out in favor of our distributors. The web stats keeps track of how many times people “abandon” their shopping carts. Over half of the abandoned carts are linking to our distributor search page, and our distributor search page is the most visited page on our website.


Lee Geurts

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