General > Beating a dead horse
Factory Direct: What does it mean?
Brewman:
Factory direct merchandise comes directly from a factory.
If you go to the factory, or their warehouse to pick up your own spa, I'd buy the line that it was factory direct.
If you go to some other building, like a spa store claiming to be factory direct, I'm less apt to believe.
Someone is paying for that building and it's associated expenses, and the cost of moving the spas, and the salaries or commissions of those who are working at the "store". That sounds pretty much like a middleman to me.
Plus- factory direct doesn't mean that any savings are passed onto the consumer. The "factory" could choose to retain any middleman money for themselves. All merchandise has distribution costs of some type.
I think that spa makers should stick to what they do best- make spas. Let the dealers handle the sales and service end- that's what they do best. It might be more efficient in the long run.
Isn't Thermospa factory direct in a way? They don't have a network of retail shops run by independent business persons, so they should be able to pass a whole lot of savings onto their customers. From what I've read, they don't.
salesdvl:
Back in my retail days, the company I worked for advertised the same way. Factory Direct. The owner said that we bought from the factory direct rather than through a distributor. I think these days "Factory Direct" is way over used.
Spatech_tuo:
--- Quote ---I would think that the store has to be owned by the Mfg. to be factory direct not necessarily attached to the factory.
--- End quote ---
But they have a lease, same employee needs, etc. I know one manufacturer that has a factory direct store partially because the local dealer dropped them and they couldn't get anyone to carry their product.
Being Factory Direct sounds good in the sales pitch but it doesn't necessarily mean much. Heck, the people selling who sell spas in the Pennysaver from those storage units are more factory direct than most of these "factory direct" stores but I'm not sure I'd consider that such a great thing. Thermospas has been factory direct for years but that's not such a great thing. When I hear factory direct spas I don't get a warm fuzzy feeling.
Mendocino101:
Please someone help me out here...but aren't we all "Factory direct dealers" here....I mean raise your hand if anyone is buying their spas from a distributor of some sorts....I think it is misleading but I guess we could all make the same claim of being Factory direct since we all buy direct from the factory.....Please do not think I am a advocate for making this claim but I just suppose we all could and as it was already said it does not mean much....
Spatech_tuo:
--- Quote ---Please someone help me out here...but aren't we all "Factory direct dealers" here....I mean raise your hand if anyone is buying their spas from a distributor of some sorts....I think it is misleading but I guess we could all make the same claim of being Factory direct since we all buy direct from the factory.....Please do not think I am a advocate for making this claim but I just suppose we all could and as it was already said it does not mean much....
--- End quote ---
I think factory direct is supposed to imply direct from factory to customer but it's been so muddled up over the past 10-15 years...
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