Flick, Sorry if my response appeared condescending (if so, it was purely unintentional). Because there are so many types of agreements between manufacturers and wholesale distributors, I thought it might be helpful to review how IM defines their business. The 10-Q summaries are fairly well written and provide a better explanation than I could easily give.
There are variations in terms and conditions, goals, incentives, rebates, services, marketing and sales help, price protection, stocking levels, returns, quantity price breaks, etc. that are often unique to the particular agreement. In addition, the industry is rapidly changing and it is possible that the future will see companies like IM make zero margin on the actual product, but will simply charge for services such as logistics, shipping, inventory management, etc.
Perhaps I misunderstood what exactly you were looking for with your original question. In any case, I'd be happy to provide any information I have in order to help clarify the distribution business (at least as far as my understanding goes, as I am certainly no expert).
Regards - Dale |
