Core Viewpoint - The concept of "no middleman profit" has become a misleading narrative that harms small businesses and distributors, leading to significant financial losses for many [1][3][11] Group 1: Impact on Small Businesses - Many small business owners and distributors are struggling to survive as they are squeezed between manufacturers and consumers, often facing reduced profit margins [5][7][9] - The white liquor industry is experiencing a "micro-profit era," where high purchase prices and low selling prices lead to losses for small retailers [5][10] - A case study of a dairy distributor highlights how the purchase price can exceed retail prices due to market chaos, making it unviable for distributors to continue their business [8][9] Group 2: Misleading Marketing Strategies - The marketing strategy of eliminating middlemen is often a facade, where new intermediaries emerge, and the original profit margins remain intact [4][10] - E-commerce platforms promote the idea of cutting out middlemen, but they themselves act as intermediaries, leading to increased costs for manufacturers and small businesses [5][10] Group 3: Consequences of Disruption - The disruption caused by e-commerce and direct sales has led to a breakdown of traditional pricing structures, resulting in a vicious cycle of price wars and inventory issues for distributors [10][11] - Brands that engage in direct sales often neglect their distributors, leading to a loss of trust and financial stability within the distribution network [9][11] Group 4: Value of Distributors - Distributors play a crucial role in the supply chain by providing logistics, market access, and customer service, which are often undervalued in the current market narrative [10][13] - The elimination of distributors could lead to inefficiencies and higher costs for consumers, as manufacturers would struggle to manage direct sales to numerous retailers [13][15] Group 5: Long-term Solutions - Instead of focusing on eliminating middlemen, the industry should aim to improve channel efficiency and ensure that every participant in the supply chain is fairly compensated for their role [15] - Acknowledging the value of each channel participant is essential for maintaining a healthy and sustainable market environment [15]