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Selecting Your Distribution Channels

April 13, 2006

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Small businesses may have products that would appeal to many different markets or channels of distribution in a single market. However, when you have limited resources, it's often best to select a single distribution channel or a limited number of distribution channels that offer:

• greatest ease of entry against the competition
• lowest costs of entry compared to the competition
• least financial risk and commitment to the trade
• sufficient volume potential to reach short-term company goals
• pricing levels to provide acceptable company revenues and profit margins

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