For years the addition of a middleman to the buyer/consumer relationship has been almost inevitable – the intermediary who takes a product from supplier to consumer and, in turn, takes a chunk of the profits for themselves.
This has been integral part of many forms of product distribution for a number of years, particularly in the motoring industry, where buyers can often suffer at the hands of salesman who is more concerned about commission than the consumer. There is however, plenty of evidence to suggest that in the modern economy, cutting out the middleman can be highly beneficial for both supplier and buyer.
Here are some of the main factors to consider when eliminating the middleman:
Business on Your Own Terms:
If it’s a two-way relationship both parties are far more likely to agree a deal that will satisfy each of them. As soon as a third party is involved in these negotiations it’s one more person (and one more bank balance) to satisfy, meaning the buyer and the consumer could be losing out.
Cutting out an intermediary simply cuts out one more process in the distribution of a product. Saving this time by eliminating an extra element to the transaction increases efficiency and overall costs. For example, if a manufacturer is able to bypass a wholesale company they can replenish their chosen retailers with stock at a faster rate. Internet shopping has also proved advantageous in this regard, as companies can stock their product and ship them quickly and easily as and when required.
Knowing Your Audience:
A business which has a direct interaction with its customers, by definition, knows exactly who those customers are. This means it’s far easier to build a genuine relationship with them, understand their key demographics, and tailor their product to suit this target audience. It will also allow them to identify potential customers they might be missing out on – in the case of Warranty Direct, we administer and underwrite all of our own warranty policies in order to take into account the needs of our customers.
Calling Out the Cowboys:
You hear a lot of “horror stories” about rogue used car salesmen whose only concern is upping their percentage. Putting them out of the picture will mean it’s far easier to begin and maintain relationships with companies and people you really trust.
Accountability is Key:
Working with companies that are FCA regulated, such as Warranty Direct, allows an unsatisfied customer with claims issues to take these to the Financial Ombudsman Service for free for an independent decision.