Selling direct + Diverse sales channels = Higher profitability

Strategic Source & Sell SurveyInsights from senior executives across the United States

• Selling direct to customers: 15.7% profit margin• Selling to retailers/dealers: 12.1% profit margin• Selling to distributors: 7.5% profit margin

of sales directly to customers

of sales throughdistributors

of businesses use all three channels

* average percentage of sales; does not include 6% ‘Other' and does not sum to 100% due to rounding

** average profit before interest and taxes for companies with half or more of sales via each sales channel

WHERE IS IT SOLD?*

54% 16%

30%

of sales throughretailers/dealers

25%

The closer to the customer, the more profit you make**

• Three sales channels: 16.9% profit margin• Two sales channels: 12.8% profit margin• One sales channel: 13.6% profit margin

And sales diversity means more profit