"My market is too special compared to others, very difficult to operate." Comment: Such a vague description is nothing more than trying to give the manufacturer a first impression at the beginning of negotiations—that it is indeed special, difficult, and requires significant investment. But the key point is how "special" it really is and where the "difficulty" lies. Because when you say the so-called "special" or "difficult" also exists in other markets, your ulterior motives are exposed, which is disadvantageous for your subsequent negotiations. Analysis: Many liquor distributors, when meeting manufacturer representatives, first talk about how local catering terminals are "bought out" or "monopolized," how supermarket terminal costs remain high, and how competition is fierce, promotional methods are copied and flooded, etc. From a broader perspective, these are almost universal phenomena; don't waste too much energy on these specific "problems." The focus should be on finding solutions and methods to jointly solve problems with the manufacturer. Because the ultimate interest of the distributor is to achieve an ideal state in the local market with the manufacturer's full assistance—high distribution, high sell-through, high repeat purchases, and high profits. These require specific methods, not just problems. In fact, even if you don't say the market is special or difficult, the manufacturer's sales staff are well aware. Otherwise, why would they approach you?
"If I do it, it will be exclusive general distribution for the full product line across all channels." Comment: It's understandable for distributors to make such demands; after all, exclusive distribution of a product line in the local market carries lower risk and gives them more bargaining power in ongoing cooperation. But one thing to clarify: what foundation do you have in the local market, and why are the manufacturer's sales staff interested in you? Analysis: Before developing a potential market, manufacturer sales staff must conduct thorough research and formulate a rough operational plan. At this point, distributors should not rush to disrupt the manufacturer's operational approach. Proceed step by step, and during negotiations, leverage your channel and terminal advantages to secure what you want in a measured manner. Whether you want all channels or the full product line, there are conditions behind it. Unless you don't have high hopes for the product, you shouldn't "open your mouth too wide." Instead, selectively propose your opinions based on the manufacturer's sales staff's approach, and exchange conditions at the right time. As long as your reasons and evidence are sufficient, you can get what you want. Remember, when a manufacturer develops a potential market, they prepare multiple options for distributor selection. If you reluctantly obtain the agency right by insisting on your requirements, you must also understand that subsequent manufacturer support may be even more "reluctant." Combine your own network structure, formulate a clear expansion plan, and even if you do well in one channel, you benefit yourself. Trust the manufacturer; if you perform well, someone will surely approach you for full-channel, full-line distribution. Note that in the early stages of market development for new products, manufacturers do not want two or more distributors operating, as it can lead to market chaos, price system collapse, and overly transparent profit margins for distributors—these are the manufacturer's "Achilles' heels." The reason they limit your products and region is fundamentally due to concerns about your overall strength. Therefore, distributors must go all out and do their part well. The manufacturer's only response will be "give a little sunshine and you get a brilliant shine"—reciprocity is a common tactic and the essence. Why wouldn't distributors go along with it?
"I'll only handle the funding; you manufacturers take care of everything else." Comment: This may sound impressive, but manufacturer sales staff are indifferent to it. If that's the case, what's the point of having a distributor? If the manufacturer does everything, they might as well operate directly in the local market. Moreover, manufacturer sales staff cannot immediately become familiar with the local market. Sometimes, at the start of cooperation, money doesn't solve everything. The manufacturer's unspoken message: there are plenty of people richer than you; why cooperate with you? Analysis: When a manufacturer starts developing a target market, their greatest hope is to find a suitable partner with complementary strengths to quickly launch operations. What are the criteria for suitability? Mature network channels, solid operational management systems (especially sales teams), quality relationships, a trustworthy reputation, and financial strength. Money is sometimes not the sole criterion for evaluating a distributor. Overall quality has become an unwritten rule in selecting cooperative agents. A distributor with only money is essentially gambling—the manufacturer gambles on the market, and the distributor may be gambling on the manufacturer, leading to low success rates. Ultimately, the distributor is gambling with their own money. There is a possibility that they "fortunately" find a professional and locally familiar operator to manage things, quickly build a sales team, and quickly execute market operations. But such "blessings" are rare and cannot be the main factor in manufacturer-distributor cooperation.
"I don't want any of your market investment; give me the bottom price and I'll handle it myself." Comment: Distributors who say this fall into two categories: one is genuinely strong, with mature operational experience and models, and can say this based on strength. The other is skeptical of manufacturer policies and feels there might be more "squeezing" possible. Analysis: A manufacturer's product pricing system should be very rigorous. If a distributor has doubts, they should clarify under what conditions they can get the first-tier (factory) or second-tier price, rather than arbitrarily demanding bottom-price operation—unless the manufacturer has such a policy. Because manufacturers know that bottom-price operation essentially means letting distributors fend for themselves. Especially for manufacturers that haven't solved their survival issues, adopting such a pricing policy is a last resort—then distributors need not take such a manufacturer seriously. However, some manufacturers adopt bottom-price policies for non-key markets with a clear purpose: do it if you can, don't if you can't, because it's not a key market and its presence or absence doesn't matter. But generally, a manufacturer's product pricing system is not tailored to individuals—this is a basic principle—otherwise, the unified national price would be undermined, and the potential losses would be unimaginable. Manufacturers won't make such a foolish mistake. Therefore, distributors should not make excessive demands on price during negotiations. Of course, getting the first-tier or second-tier price requires courage, strategy, and justification; otherwise, you'll go in the wrong direction.
"At product launch, we'll use TV, bus ads, billboards, newspaper soft articles—everything." Comment: Manufacturer sales staff detest this statement; secondly, it shows the distributor's superficiality and lack of understanding of basic product operation rules; thirdly, it indicates the manufacturer hasn't earned the distributor's trust. The unspoken message: Since I'm investing so much money in stocking your products, you manufacturers should also invest heavily! Strictly speaking, this is a coercive tactic by distributors to extract resources. Analysis: Market investment follows certain patterns. The investment differs during product introduction, growth, and volume phases. For example, during the introduction phase, the focus is on extensive distribution, entry and display in key channels and terminals, and promotional follow-up. The goal of this phase is to achieve basic terminal coverage. Corresponding expenses go to personnel salaries, terminal entry fees, product displays, and promotional costs at key terminals. If simultaneous launch in secondary and tertiary markets is considered, newspaper and TV ads can be considered. But according to industry norms, without a solid target market, launching in secondary and tertiary markets is difficult. Therefore, focusing on the target market is the top priority during the introduction phase. So, expense investment should be more targeted. High-profile advertising is inappropriate in today's increasingly rational consumer market; solid ground-level promotion is the only way to steadily expand coverage. In market development, being eager for quick success is a fatal flaw. Proceeding step by step requires patience and method. The premise of getting twice the result with half the effort is solid and effective basic work, while half the result with twice the effort is often due to a speculative mindset.
"The salesperson you assigned to my market is very incompetent (or very competent)." Comment: Perhaps the distributor is sincerely reporting the actual situation to the manufacturer's superiors, but instead of verbal expression, it's better to produce more results and use actual data to prove your point. Analysis: Remote management of manufacturer sales staff is often stretched thin and helpless. The common practice is to have them report to the local distributor for attendance and daily reports, which gives distributors leverage to "intimidate" local manufacturer sales staff, leading to occasional false reporting of market expenses. Manufacturers are well aware that their dispatched sales staff are often "assimilated" by distributors and become part-time members of the distributor's sales team. The reason manufacturers turn a blind eye is that the distributor's performance is acceptable; otherwise, the local manufacturer sales staff would have been "sacrificed" long ago. Of course, this doesn't mean distributors have no say in evaluating sales staff; on the contrary, accurately reporting a salesperson's performance is important. But the "report" must be timed and placed appropriately; otherwise, it backfires. Nowadays, a common saying among mid-level and above manufacturer leaders: sales staff who are scolded most by distributors should be promoted, while those praised daily will eventually be dismissed. This subtle employment paradox is worth pondering for distributors.
"Our contract must be signed for three or five years, or I won't sign." Comment: This may seem like high expectations for the manufacturer and a desire for long-term cooperation, but it actually reflects a subtle fear of being "abandoned" in the future. Lack of confidence and inadvertently showing weakness—this is detrimental to future cooperation. Analysis: Contracts (or agreements) between formal manufacturers and distributors are typically signed annually, and some include trial sales contracts of three to six months. Don't easily change these established rules because the procedures are cumbersome, and it's not a core issue, but it attracts too much involvement from senior management, increasing pressure. Manufacturer sales staff generally don't want this. The key to contract fulfillment is the process and results; if you meet the manufacturer's targets on time, your interests are protected. Even if you don't meet the targets, I can tell you clearly: even if the manufacturer wants to replace you, they don't have the courage unless absolutely necessary. Because the cost of developing a new distributor is six times that of maintaining an existing one—this is common knowledge for manufacturer personnel. As long as you perform reasonably well, you can rest easy. So, distributors need not "bargain" with manufacturer sales staff over contract length. Use that energy to think about how to expand the local market steadily and quickly—that's the real issue. In manufacturer-distributor cooperation, the eternal theme is integrity. If this theme is violated, the substantive meaning of cooperation will be greatly diminished. Sometimes, cooperation fails or hits a snag due to a few dishonest words. The above summary may be one-sided, but since these words are "unpleasant" or "inappropriate," it's best not to say them. As the saying goes, seek common ground while reserving differences, turn conflict into harmony, focus on the mainstream and the main issue, and ultimately achieve the same goal—win-win.
Editor's PS: From nearly 1,900 articles published on this public account, I've selected 1,067 quality articles and categorized them into 14 major categories and 57 knowledge points, systematically compiling frontline marketing management content into a library for your learning. From market to customers, covering practical tactics and management, all are valuable. Follow the public account and reply with the number "1" to browse the following content: Sales Boost Techniques (73 articles), Sales Supervisor Skills (74 articles), Terminal Visit Management (82 articles), Distributor Market Operations (118 articles), Distributor Development (91 articles), Distributor Internal Operations Management (89 articles), Team Management (53 articles), First Lesson for New Salespeople (96 articles), Efficient Distribution Techniques (117 articles), Sales Manager's Eighteen Skills (90 articles), Managing Distributors (47 articles), KA Operations (35 articles), Internet & Branding (47 articles).