A distributor represents manufacturers’ goods by taking ownership and providing local inventory to businesses in the region. Distributors provide many other business services involved with form, time,...

A distributor represents manufacturers’ goods by taking ownership and providing local inventory to businesses in the region. Distributors provide many other business services involved with form, time, place, and possession—the four types of economic utility. Distributors make money by buying products from suppliers at wholesale prices and reselling them to final customers with distributor’s markup (added margin).