It’s no secret that most electronics purchasers buy most of the components they are sourcing from authorized distributors.
It’s also true that when parts are in short supply and can’t be purchased from authorized distributors, buyers turn to non-franchised independent distributors, which may have the parts in stock or know where they can be sourced. Some buyers also purchase from independent distributors because they can get a better price for a part, while others sell their excess inventory to independent distributors.
Independent distributors generally do not have franchise agreements with component manufacturers. There are some that have a few franchises with certain component manufacturers, however, and in recent years some of them have added even more authorized lines.
One distributor that has been especially aggressive in adding franchise lines is America II, which has historically been an independent distributor, has been steadily signing franchise agreements with component manufacturers.
The company now has 55 such agreements in place. Most of the agreements are with relatively small component manufacturers, which have sales in the $15 million to $30 million range. However, Brian Ellison, president of America II, recently told me his company is negotiating with several major component manufacturers for franchise agreements.
In addition America II has “direct” relationships with about 200 parts manufacturers and buys directly from those suppliers, although it has no formal franchise agreements with them.
“We’ve made the transition over the years from an independent to a blended or hybrid distributor,” said Ellison. But now America II does not want to be known as an independent or hybrid or blended. “Our message is, we are simply a distributor.”
He said the idea behind adding franchise agreements is to “have a broader product offering to our customers.” The distributor wants to increase business within certain market segments such as automotive and medical, and it needs to be franchised for more lines to grow sales in those segments.
He said that although America II plans to add more authorized lines, it will continue to service buyers looking for parts that are in short supply or who are looking for lower price parts. Read More
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Here is a small sample of their authorized lines:
For America II’s complete line card click here