Dealers and Tinting Machines

How paint companies rely on dealer networks and in-store tinting machines to mix thousands of colours, and why this distribution is a competitive moat.

Dealers are the backbone of paint sales.

Dealer networks

Paint companies sell through tens of thousands of dealers.

Tinting machines

Dealers use tinting machines to mix base paint with colours on the spot.
Customers can choose from thousands of shades.
Dealers carry fewer tins, saving inventory.

Moat

A large dealer network with machines is hard for newcomers to copy.

Dealer incentives

Companies offer credit, rebates and rewards to keep dealers loyal.

Supply chain

Frequent deliveries keep dealer stocks fresh.

The custom shade

A buyer chooses a shade from a colour card, and the dealer mixes it in minutes with a tinting machine.

Thinking paint is sold ready-made in every colour

Most is tinted in stores.

Key takeaways

Dealers sell most paint.
Tinting machines mix thousands of shades.
Networks form a competitive moat.
Companies incentivise dealers.