Superior Stereo Systems, a Cutting-Edge Manufacturer of Stereo Speakers, Sells

Essay

Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers, sells the popular Superior V model and recently introduced the Superior VI, a brand-new speaker technology. In the past, Superior sold all speakers directly to retailers. The firm was recently approached by a wholesaler who would like to carry its line of products. The company's marketing manager, Deanna Thorpe, is not sure working through a wholesaler will be worthwhile. In fact, Deanna suspects that online sales would simplify marketing channels, cut costs, and improve profits for Superior. Why might Superior wish to use a wholesaler rather than selling directly to retailers?