Too many middlemen!

Ubbquittious

I called up some crowd today looking for a part. They buy this part in from Italy where they make some or all of it (I suspect at least one sub-component comes from Choyna). Part was in stock, but they refuse to sell it to me. In order to buy direct from them I have to send a man on horseback with a wax sealed envelope, play several rounds of golf with the CEO and hand over many thousands of quids.

Only way to buy is from a reseller. They want 100 quid + VAT

I can get a similar enough part (probably poorer quality) on Ali Express for about 18 including the shipping. An Italian site sells the exact same part for 50.

How are these middlemen staying afloat? Is it all part of some ingenious plan hatched many decades ago to ensure as many people as possible can enjoy a simple lazy job where they just answer the phone the odd time and shift a few boxes around the place and not have to bother actually making anything or doing anything useful?

Have worked for companies in the past where they love getting fleeced by suppliers. They would rather pay 200e for something even if the lad down the road is selling it for a fiver because to add a new supplier to their accounts requires all of the directors to take part in an elaborate ceremony where the owner of new supplier also attends and drinks blood from a ram's skull

podgeandrodge

Those parts are ubiquitous.

GoogleBot

https://www.boards.ie/discussion/2058213693/too-many-middlemen

Probably middleman is investor/shareholder/partner

Ray Palmer

People are often unaware of insurance, licensing and certainty of supply. Yes you can get it cheaper but it may effect things you may not know. It does mean over paying on occasions but keeps the business viable. Saw similar buying IT equipment and yes middle men get paid but the supply chain was 10 times faster. Time is money.

Wanderer78

if theres far less 'middlemen', who will employ us?

Ubbquittious

https://www.boards.ie/discussion/comment/118040446#Comment_118040446

Someone who sets up a factory to produce the stuff that's currently imported for pennies from China and resold for 100s of quids.

Was there a conspiracy back in the day to lengthen supply chains in order to create service industry jobs out of thin air? How did they pull it off? So many cushy jobs doing nothing depend on this

StupidLikeAFox

What industry are you in yourself op?

Gregor Samsa

Selling to the general public is an art in itself, full of regulation, risk and requiring resources (I call it "the 4 Rs", after the sentence I just wrote off the top of my head), and one that many manufacturing companies don't have the expertise to do, or the will to develop them. Much easier, cheaper and less hassle to dole that out to a reseller or distributer. Lets manufacturing companies concentrate on what they do best - manufacturing. Trying to spread yourself too thinly by doing ever aspect of business in-house often doesn't make business sense.

Orange Tiny Terror

Have to maintain the bullshit jobs because too many people can’t think of anything at all to do with their free time if they only had to work 24 hours a week.

https://en.wikipedia.org/wiki/Bullshit_Jobs

A relative has a job in a shop selling small car parts it's mainly used by one man mechanics places, they could easily get the parts directly sent by a currier but for some reason, they would rather use a small shop who has the parts delivered to them by currier and they sell them on, so to a certain extent, people want the resellers.

Potential-Monke

Is it not more a case of they have a face to go back to in order to give out if something goes wrong, vs a faceless corporation?

YFlyer

https://www.boards.ie/discussion/2058213693/too-many-middlemen

We got an engineering workshop to make connectors for round bottom flasks connected to a freeze dryer. Each connector was about €10 each. If we bought from AGB or Lennox, they be about €60 each.

Bring a schematic drawing to your local workshop.