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Advantages : Minimal cost of sales Well established service capability Training of distributors not required An addition to the shrinking product line of the direct sales 2% spare part and maintenance cost not attractive to the distributors
Disadvantages : Partial attention to Centac-200 Loss of sales in Rotary compressors for distributors Centac-200 in category for distributors according to hp assignment policy Increase in time to deliver and service : dissatisfaction among customers Adds to inventory cost of I-R
Advantages : Increase in revenue and profits for distributors Well established network Attention towards Centac-200 Easy accessibility for customers Better and quick serviceability
Disadvantages : Lower profit margin for I-R Need for intensive technical training for distributors Lack of attention towards other compressors Less control of I-R over the distribution channel : Price decision
Advantages : Increase in revenue and profits for distributors Higher profit margin for I-R compared to scenario 2 Attention towards Centac-200 Easy accessibility for customers Better and quick serviceability Minimal Training of distributors