A 2112 Primer on Channel Economics
Many vendors do a tremendous job of producing systems — do they really need to have intermediaries? Can they not just sell directly to the end user? They answer is yes, but it is not that practical. Vendors looking to increase revenue and decrease costs choose not to hire, train or support the army of salespeople, engineers and technicians needed to cover their total addressable market. Simply put: The channel is a means for accelerating sales while keeping sales costs down.