How distributors choose products is not a new topic. Long ago, many experts and predecessors analyzed and researched this issue from various angles and levels, offering many excellent suggestions and methods to help distributors enhance profitability and risk resistance.
Distributors choose different products at different stages, such as which products serve as profit contributors, which for volume, which for competition, which for channel development, and which for enhancing the distributor's brand and industry position, as well as managing the relationships among these products. These theories and successful experiences are worth referencing, and I will not elaborate further. Instead, let's discuss how distributors evaluate a manufacturer's strength and credibility.
In many people's view, evaluating a manufacturer's strength and credibility is a trivial matter—just look at registered capital, certifications, factory environment, number of employees, and factory area. However, I believe that for distributors, the value of evaluating a manufacturer lies in observing subtle details. The following 10 actions are common when distributors visit factories, but many distributors fail to extract and analyze these details from different perspectives to assess the manufacturer's strength and credibility, thinking these small details do not constrain the manufacturer's development. Distributors should follow the principle of "looking at the big picture while starting with small details," not missing any detail they see, and analyze them to make a successful leap when choosing products.
Guard Room The factory is the main site for production, technology, and warehousing. The guard room is the first point of contact for distributors entering the factory; it is the factory's external facade and the most important checkpoint for goods in and out. The guard room should have strict security procedures, such as requiring strangers to be approved by relevant personnel, fill in personal information, and leave only with a signed pass. However, some factories have no security system; strangers can enter without a badge or registration, and guards do not wear uniforms. I once saw a factory guard eating sunflower seeds at work, with shells scattered all over the floor. If a distributor sees such a guard, can they trust the products?
However, when distributors visit, factories usually prepare, so such situations are unlikely. But you can still gauge from the cleanliness of the guard room and the guards' demeanor.
Restroom In developed countries like Europe, America, Japan, and Korea, restrooms have become a culture with pleasant environments. Distributors cannot expect factory restrooms to be as elegant and clean as office buildings, but they should at least be clean. It's like judging a person's taste—not by their attire but by whether their socks are clean.
General Manager's Office The GM's office often has calligraphy or paintings (especially motivational quotes or personal mottos) and is spacious and bright. I have observed that Hong Kong and Taiwan companies pay more attention to this; some even consult feng shui, showing their emphasis on the office environment.
Here is a real example I witnessed: a small company with about 100 people grew rapidly. Due to increased staff, office and production space became cramped, but the GM's office was spacious. They even moved HR and IT staff into the GM's office. I immediately thought this company would not last long. Indeed, not long after, the company exited the market due to product quality issues. This illustrates that if the GM cannot adhere to principles when office space is tight, allowing others into his office, perhaps one day he might compromise on using cheap, inferior parts. Can such a philosophy produce good products?
Technical Center Technology is the core of a company and a key condition for products to succeed in the market. However, many distributors are not from technical backgrounds; they are laymen looking at experts, so they do not understand or value it. But that does not mean they should not evaluate the manufacturer's technical strength. As the saying goes, "Laymen watch the excitement, experts watch the craft." Even as laymen, distributors can use methods and techniques, such as observing the age of technical backbone staff. If they are all young graduates, can you trust them? It's like a 20-something traditional Chinese medicine doctor treating you—would you trust him? The answer is no, because technology requires years of accumulation, except in emerging industries like IT. Also, observe the technical lab environment—whether it is messy with parts scattered around, which can indicate the company's technical capability and management.
Office Environment Many companies separate manufacturing and sales. The sales office (in a commercial building) serves as the company's "face," with spacious, elegant, and beautiful environments, red carpets, strict departmental zoning, and numerous meeting rooms, making distributors feel the company's strong strength. But the factory office environment may differ. If the contrast is too great, distributors should be more cautious.
Showroom The showroom is a company's "face," reflecting its culture, brand, philosophy, technical strength, and management level. Everyone understands that the showroom reflects corporate culture, brand, technical strength, and philosophy, but its reflection of management may not be understood.
Case: A distributor visited a car DVD manufacturer. They were satisfied with the office, production site, and technical strength. But during the showroom visit, many issues surprised them: opening the display cabinet required finding the general office, product demonstrations were handled by the quality inspection department, and many functions were not demonstrated correctly, contradicting what was communicated during technical discussions with the deputy GM. The showroom, as the "face," had no dedicated staff, and the quality inspection department did not follow technical process requirements, indicating a lack of alignment between quality inspection and technical standards, and extremely chaotic management.
Factory Warehouse The warehouse is a key area for distributors to inspect, checking whether management is strict, following principles like FIFO (first-in, first-out), categorized display, and clear labeling. However, for new distributors visiting with factory staff, it is hard to verify these. But you can estimate the factory's inventory to assess strength: many salespeople exaggerate production and sales volumes to prove strength and encourage larger orders and favorable contracts. If the factory has 9 million yuan in inventory but monthly sales are only about 6 million, and the salesperson's claims differ greatly, it indicates something fishy (excluding short-shelf-life products like milk).
Smoking Room The smoking room is usually for middle and senior managers. If this place is dirty, messy, and in poor condition, it proves that the good environment elsewhere is just for show, not a long-term habit.
Employee Cafeteria The cafeteria reflects how the manufacturer treats its employees. Some factories ignore workers' working and living conditions, focusing only on "profit," and such factories rarely survive long, often producing low-end, inferior products. When I worked in sales at a previous company, I often took distributors to visit the employee cafeteria, and if it was mealtime, I would have them eat there. As a result, the success rate of distributors carrying our products was very high, and their loyalty was strong.
However, some factory salespeople think that when distributors visit, it's the "final kick," so they must entertain them at high-end hotels and restaurants. But this often backfires because distributors are not there for lavish meals but to assess the factory's strength and long-term development direction.
Employee Benefits Distributors should learn about production line employees' benefits, wages, whether they are paid on time, and whether social insurance is provided. If wages are low and not paid on time, the factory may have cash flow problems; if there is no social insurance or benefits, the factory treats employees poorly, and the boss may be short-sighted, possibly exiting quickly when profits decline, causing losses for distributors.
When evaluating a manufacturer, distributors should pay more attention to details. However, it does not mean that if all 10 conditions are met, the manufacturer's strength is absolutely guaranteed; nor does it mean that one or two failures prove the manufacturer lacks strength and cannot be cooperated with. I believe that if 3 items fail to meet the distributor's requirements, the distributor should conduct further evaluation from other aspects to decide whether to cooperate.
Reply with the following keywords to categorize and read related professional articles: Sales Supervisor, Second-Tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Dealer Game, Product Slow Sales, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Motivation, Trade Promotion, Sales Misconceptions, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing, Market Visit Inspection, Baijiu, Beer, Sales Increase, Agency Products, Channel Conflict, KA, Terminal Merchandising, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, New Salespeople, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Franchise Recruitment, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Inventory Pressure, Holidays, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Debriefing, Debriefing Report.