Everything you wanted to know about industry terminology we always hear:
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.
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