© PCB | August 30, 2013

Why European PCB manufacturers should not supply distributors.

The eternal topic of conversation amongst the manufacturers of printed circuit boards is the huge success of distributors of Chinese circuit boards on the European markets.
The majority of local manufacturers believe the reason to be the cheaper price. But that is not the whole truth. If we have a look at what sales arguments the majority of distributors have, we will see that all of them offer the complete service package (proto, small series, large series, and different technologies) in a single place, from a single supplier. Such a strategy makes the process of buying printed circuit boards very convenient for customers and excludes local manufacturers from direct contacts. At the same time, it can be seen that distributors are forced to use European manufacturers for fast proto deliveries. Otherwise they are not competitive in terms of the speed of delivery. It can be concluded that European factories should avoid cooperating with distributors, thereby creating the following positive consequences:

1. Distributors will lose part of their main sales argument, i.e. the policy of “getting everything you need in one place” is no longer possible.

2. European manufacturers will be able to establish direct contacts with the customers themselves, which would expand their customer portfolio and make them less vulnerable in terms of a sudden reduction in their customer database, i.e. while previously it was the distributors who was accumulating dozens of customers and acting as a single customer for the manufacturer, now the manufacturers will be able to win the majority of customers by themselves.

3. By reasonably using the difference between the sales price of a manufacturer and the sales price of distributors, it will be possible to reduce the price for customers. Why should customers pay extra money to distributors, if it is possible to order express deliveries directly from European manufacturers?

There can be just one conclusion: we should stop cooperating with distributors in terms of express deliveries, which will breathe new life into the process of the manufacturing of printed circuit boards!

/Chief Technologist/
Brandner PCB


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