MTX is now looking to sign up retailers in a traditional direct sales relationship, in addition to the “cloud commerce” Internet distribution system it created last year.
It is pushing a return to traditional retail sales now that its products are no longer widely discounted on the Internet and retailers can sustain reliable margins, it said. Under its “Advantage Program,” retailers can buy in quantities, stock product and receive volume discounts and other benefits.
MTX still does not work with distributors or manufacturer’s reps it said.
It also still retains its cloud commerce program where retailers buy inventory on the web on a pay-as-you go basis for those who don’t want to stock inventory. Product is then shipped and the dealer receives a check for his portion of the profits on the sale.
MTX Founder and President Loyd Ivey said he invested $4 to $5 million in the cloud commerce program. “I can see the future and it’s terrifying if we don’t stop this price erosion…somebody’s got to stand up and say ‘no’ and take a hit,” he said.
He believes other suppliers will follow suit in the future.
With the two programs, retailers can choose between those who don’t wish to stock inventory and those who wish to keep inventory on hand in the store for customers who don’t want to wait for it to be shipped.
Source: CEoutlook
