Place

The housing industry has a saying – “location, location, location”.

It means that location is the most important thing to consider. Location is also an important consideration when marketing.

Location in marketing terms is where the customer will be able to buy your product or use your service, that is, which distribution route you will use.

Distribution routes relates to how your product will reach the customer, you can choose a direct route which is to sell directly to the customer or sell indirectly through a third party.

Direct selling

This includes selling through your website or opening your own sales site, e.g. shop, farm shop, market stall etc.

Watch the video below to see Angharad Gwyn from Adra talking about how she sells her goods directly (business webinars 4).

Direct selling does not always mean a traditional shop. There are other ways of selling goods directly to the public. The Jenkins family milk is sold from special machines in mid Wales: 

Selling through a Retailer

You may want to sell your product through retailers, i.e. ‘bricks and mortar’ shops. These are real shops such as a coffee shop, or online shops such as Amazon or Etsy. You should be aware that the retailer will sell your product at a higher price because they have to add a percentage in order to cover their costs and make a profit.

Selling through Wholesalers

Many businesses sell through wholesalers. Wholesalers buy goods in bulk from the manufacturers and sell to retailers in smaller batches.

This is easier for the retailers because they can order or buy goods from one place rather than from the manufacturers directly.

You should remember that everyone in the distribution chain will add to the price, so the longer the chain, the higher the price will be for the end customer.

Watch the video below, which has English subtitles, for more information about Castell Howell, a wholesaler located in Cross Hands:

Location of Services

When talking about services, the location of the service is important – or where it takes place.

Here’s a Tafwyl staff member talking about the location of the festival on the Welsh language BBC Cymru Fyw website.