And their value proposition, as even they realized later, was pretty unclear.

If you think about it, we didn't talk about how much to charge.

VARs might do video editing systems that are turnkey.

This is just the gross profit.

October is inventory time.

In a physical channel, a direct sales force are sales people that work for you directly and typically sell directly to the end user.

In other words, how are we going to make money?

On the other hand, low utilization let me pick another color will lead the prices dropping.

So, you're selling costs were embedded here, this was the commission or direct sales costs or whatever you were paying your direct sales people and you made 37 selling directly.

Sell, sell, sell.

So for some industries, distributors play a pivotal role in the distribution of the product.

If it turns out you're right, we could sell dealerships now, which sounds crazy.

For this quiz to check your understanding of the channel diagrams, match the appropriate channel diagram to the corresponding channel and put the appropriate number in the correct box.

What about the dealers filing suit against you?

How many can you distribution channel actually sell?

So let's take a look at a direct sales example.

They provide distribution and accounting, bill collection, etc.

Can I get a dealership?

We should be charging for it from day 1, or Wait a minute.

Do you have any sales distributors in Japan?

He works a dealership over on Fulton.

This is the boat that that lady was paddling around in, and this artisan makes the boat and the paddles and sells directly to the people who need the boat and the paddles.

Some of them might actually add some service or support but they're essentially an extension of the distribution channel, and they talk to the end users.

What video lets me do is since I can't be in front of him at a sales counter,

I'm offering you the opportunity of a lifetime... a new car dealership.

Your direct sales people can actually be the one talking to the consumers directly or they could be the ones selling to system integrators,

Cut out the middleman. Run our own game.

Web Telesales, almost no value added. Retail maybe adds a little support.

They deal in fruit and vegetables at that store.

There are some nice apples on sale in that shop.

We sell goods on commission.

We manufacture decorative ceiling tiles.

But this is, of course, an optimistic scenario. Let's think of other scenarios.

Liquor is not sold at this store.

Liquor isn't sold at this store.

Retailers and mass merchants often, though not always, get their products supplied through distributors.

This is a phone call conversation from a car dealership from 27 minutes ago.

The dealer gave an old Nissan to me for 200,000 yen.

Sold

PHOTO RELEASE

What do you sell?

What's going to happen to me now?

So instead of just small storefronts, they aggregate tens or hundreds of thousands of products under one roof.

So, in a year's worth of learning we found a bunch of surprises.

We call it a select opportunity .