The Electronic Component Sales & Distribution Channel

Electronic Component Distributors or "Distributors"

Distributors are in business, as their name states, to sell components. More specifically, Distributors buy large lots of components from Component Manufacturers, or Principles, and resell them at a markup and in lower quantities to equipment manufacturers

Manufacturer's Representatives or "Reps"

Reps are also do as their name states: The represent Component Manufacturers, or Principles, and act as a contract labor sales force in that regard. Reps do not stock components, they stock data books... or they used to! Only the top N companies in a territory "rate" full time attention and are assigned a dedicated an inside or outside Rep Salesperson depending on the size of the account.

Component Manufacturers or "Principles"

This is the company that, for all intents and purposes, actually makes the component. These days, even Principles purchase product from other Principles and re-label it. Products from small run ASIC houses are an example

So many engineers of over so many years have ask for clarification on this issue. Now you can understand why up to THREE salespeople might show up on your doorstep to sell you the same little component. By the way, much more often then not, there are several Distributors in a territory trying to sell you the same component from the same Principle, just like Acme and Seven Eleven both selling "Wonder Bread". Unlike Distributors, Reps usually are usually granted an exclusive in a given geographical territory or major account.