I understand the logistics argument, I really do. I just generally hate them because they don't really add value to the product at all, and the only functional thing they do is make the product cost more than it should by adding fluff and playing games with inventory.
The mids suck so much that FFLs that have a lot of cash on hand will front huge sums of money just to work around those shitbirds at least when it comes to buying guns and ammo. When a buyers group has a 50K or greater buy in, and a dealer that can afford the buy in slams down on that button like using a fist of an angry god, you know there is something wrong with the distribution system. You want to know why the handful of shops in the northeast region that have drastically lower ammo prices have low ammo prices? It's not simply because they set a lower margin- it's because I would bet pretty much anything they used buyer groups to get that ammo instead of a mid. The difference in cost between the two is pretty dramatic.
I just generally loathe that part of the industry like the same way I think that things like credit card processors, most car salesmen, and telemarketers are the most worthless things on the planet. They don't add much value, they just exist as a venue for people to farm money off of others while doing pretty much nothing. Or maybe I have it all wrong and another way of looking at it is they exist because manufacturers and (to a lesser extent, but still there) dealers are too lazy to do the things the mids do - so the mids are not really the problem just a symptom of another sort of malaise. I guess I can't entirely blame the distributors for capitalizing on that- it's smart business.
-Mike
Heh, I 100% agree with your analysis except at the end I go "Well thats just how the world works Sport!"
The work I do is the exact opposite process. Big Fish buying stuff from small fish, they put a processing company in the middle. There are companies which from shear force of size/operation just do not want to deal with the "pocket change" transactions/purchase orders. The comical part is when the Big Fish needs something urgently and they physically cannot jump out of their own way because they are pushing everything through a purchasing company which means:
They want something
They pass Info to Purchasing Company for RFQ
PC sends us RFQ
We send quote to PC
PC sends their quote wrapped around our stuff to Big Fish
Big fish gets all signatures and issues order to PC
PC issues order to us
Every step of the Purchasing Company involves it sitting on someones desk till they get to that "batch" to process.
When company buys direct it consists of:
They pass Info to us for RFQ
We send quote to Big Fish
Big fish gets all signatures and issues order to us
That in itself means 1-2 WEEKS are cut off the purchasing cycle.
For individual small fry stuff its fine because it can take MONTHS to get all the paperwork in place to get paid directly.
Think of it like a credit card vs. writing a check for every single thing. It is way easier to write 1 check to CC at end of month vs. checks for stick of gum and soda you buy.
I doubt a company really wants to chase down this and that shop for payment on the 10 boxes of ammo they bought last month, but having X amount of distributes is easier to handle. Its stupid and wasteful when it breaks down but distributors/resellers are just a fact of life.