Direct selling looks attractive because the gross margin is visible. Distribution looks attractive because local relationships and logistics arrive faster.
Ask who carries the failure when the normal plan breaks. Damage, late delivery, slow sell-through and customer returns are not edge cases for physical products; they are part of the commercial design.
Direct keeps customer learning close
The brand sees objections, returns, price resistance and service questions first-hand. That data is valuable early.
For “Direct keeps customer learning close,” write inclusions, exclusions and timing beside the number. A price without scope creates a second negotiation later.
Distribution can buy speed
A good distributor already has accounts, warehouse routines and local salespeople. The fee is partly payment for that infrastructure.
For “Distribution can buy speed,” write inclusions, exclusions and timing beside the number. A price without scope creates a second negotiation later.
Margin is not the only cost
Direct requires marketing, sales, support, storage, delivery and collections. Compare contribution after those costs, not list price minus factory cost.
For “Margin is not the only cost,” write inclusions, exclusions and timing beside the number. A price without scope creates a second negotiation later.
Channel conflict needs rules
If the brand also sells online, territory, price policy and account ownership should be clear before partners invest.
For “Channel conflict needs rules,” write inclusions, exclusions and timing beside the number. A price without scope creates a second negotiation later.
Pilot before exclusivity
Short pilots with defined account lists or regions provide evidence before either side promises too much.
For “Pilot before exclusivity,” a partner's enthusiasm is useful, but evidence is better: recent relevant accounts, response times, warehouse capability, reporting habits and a named person who owns the work.
What would change the decision
For this article, name the evidence that would make you reverse course—better conversion, lower damage, faster delivery, stronger partner reporting or a different cost structure. Review on a date, not whenever someone feels nervous.
What belongs in the file
For this article, save the current price, responsible parties, delivery or payment terms, the agreed exception process and the review date. Commercial memory should not live only in chat history. For this topic, the first things I would put on that review are direct keeps customer learning close, distribution can buy speed.