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Advantages vs. Disadvantages of Utilizing a FSS Reseller

Establishing and maintaining a Federal Supply Schedule (FSS) contract can be a daunting and resource-draining task if the Federal market is not intending to become a primary source of revenue. In those instances, a manufacturer could consider establishing a subcontract with an existing FSS reseller as the Federal Government labels them (but often referred to as a distributor in the commercial market). A reseller, generally, includes the product on its FSS contract and then manages the sales that flow through that contract, which can offer both advantages and disadvantages to the manufacturer.

Advantage

Disadvantage

Streamlined Procurement Process: 

FSS Resellers simplify the federal procurement process. Not only do they handle mandatory reporting requirements, they also ensure proper product listing on GSA Advantage, etc.

Delayed Response Times: 

In listing product(s) with a reseller, a manufacturer is intentionally introducing an intermediary who may have competing priorities, which can delay communication and order fulfillment.

Expertise and Guidance: 

FSS resellers are well-versed in each schedule specification and can support identification of the solutions for a product. They can anticipate Government demand, compare competitor features and pricing, and ensure compatibility with existing federal requirements and/or systems.

Loss of Control: 

By utilizing a reseller, a manufacturer must be comfortable with relinquishing a level of control in the sales process that it might otherwise enjoy. Negotiations and customized solutions will be handled between the FSS reseller and the Government.

Volume Discounts and Special Offers:

If a FSS Reseller has a high volume of sales with its other products, then it may have advantageous pricing relationships with the Prime Vendor contractors, which can provide a direct savings to the manufacturer.

Limited Product Selection: 

Resellers may not choose to carry a manufacturer’s full range of products based on its own assessment of Government demands, which can limit which products are available on the FSS.

Consolidated Billing: 

Resellers can provide consolidated billing, which can simplify a manufacturer’s accounting process.

Additional Costs: 

Resellers typically require a minimum markup, which may require additional product discounting to ensure price competitiveness.

Overall, using a reseller can be advantageous in saving a manufacturer both time and resources; however, it is important to carefully both the pros and cons before committing based on a manufacturer’s own assessment of the market and its potential. At a minimum, this assessment will create a strong negotiation position with the reseller if that is the best path.

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