Electronic Parts Distributors Make Money
A component distributor is a link between the manufacturer and the buyer, adding value by stocking components that are not easily available or at least not as cost effective for buyers to purchase directly from the manufacturers. Often they also provide value added services that enable the buyer to reduce costs and improve efficiency. One of these is to offer a service to manage obsolescence for aging products that are being replaced. Another is to help with the design process, providing technical support to ensure that the right product is used for the circuit design.
A good electronic parts business plan will highlight a clear strategy for how the company is going to win and keep customers. It will include a detailed market analysis, current trends, and potential growth opportunities. It will also describe the key financials that the investor should be looking for, including revenue and profit projections, cash flow forecasts, and funding requirements.
An investment banker will expect to see an Electronic Parts Distributor business plan that shows the company is positioned for success. This plan will highlight the company’s assets, which are resources owned by the business, as well as its liabilities, which are debts owed to others. The balance sheet will show how much the company is investing in its long term assets (capital expenditures), as well as how much it is borrowing or repaying from financiers.
How Do Electronic Parts Distributors Make Money?
The business plan should also detail how the company is going to make money, which will be based on its sales and marketing expenses. It should also provide a realistic projection for the number of new customers that will be acquired, as well as how many existing clients are expected to renew their purchases.
Buying direct from the manufacturers can be very expensive, especially if there are minimum order quantities involved. Using an electronics component distributor can save significant money by allowing the buyer to purchase smaller quantities, which is ideal for prototyping and testing purposes. These companies will often have the latest components in stock, which means that they can be shipped quickly for use in new development or production.
Some component distributors will have their own engineering departments that can provide support to their buyers. This can be very helpful when the buyer is having trouble with a design or if there are issues with a production run that need to be resolved.
Consolidation is a major trend in the industry, with some of the largest independent distributors buying up or merging with smaller competitors. This has created a few super distributors that are now in control of over 50 percent of the industry’s revenues.9 The top two players in electronics distribution are Arrow Electronics Inc and Avnet Inc.
A good component distributor will have a rigorous quality inspection process for the goods they sell. This will involve a lot of state-of-the-art equipment and trained and certified technicians who can test the components for things like temperature, moisture, static electricity, and other factors that could damage the parts.
Jinftry (JING FU CAI (HONGKONG) INTERNATIONAL CO., LIMITED) is a global professional one-stop procurement and service provider of electronic components. It uses independent distribution, platform distribution combined with the Internet online sales model to sell various products worldwide. Types of electronic components, providing one-stop component procurement and supply chain services to global OEM factory customers and brokers. Sales include integrated circuits, discrete semiconductors, IGBT modules, connectors, capacitors, diodes, transistors and other electronic components, covering power supply, automotive, communications, computers, consumer products, medical, industrial, mobile phone and other application fields.
Jinftry product line cards: TI, ONSEMI, Microchip, Maxim, NXP, STM, Xilinx, Intel, Infineon, Broadcom, Renesas, samtec, Souriau, CISSOID, Mitsubishi, FUJI, Semikron, etc.
Website: https://www.jinftry.com
Shenzhen Operation Center Address: 26F1, Building C, Electronic Technology Building, Shennan Middle Road, Futian District, Shenzhen, Guangdong, China
Hong Kong company name: JING FU CAI (HONGKONG) INTERNATIONAL CO., LIMITED
Registered address of Hong Kong company: Unit No.A222,3F,Hang Fung Industrial Building,Phase2,No.2G Hok Yuen Street,Hunghom,Kowloon,Hong Kong
Email: [email protected]
Tel: +86-755-82518276