---
title: "After the Dragon Boat Festival, July is Coming—Distributors Must Act on These Four Things!"
description: "For baijiu manufacturers and distributors, annual sales are concentrated around three major festivals. The Dragon Boat Festival, as the first sales node, draws much attention, but after it comes a long off-season. During this period, distributors face issues like price chaos, difficult payment collection, and slack business operations. To address these, distributors should establish monitoring mechanisms, implement reward and penalty systems for payments, shift business focus to terminal construction, and research competitors."
author: "袁会文"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-06-27"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/CQ07vM6HJ8_-5y6xo0juEw"
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---

# After the Dragon Boat Festival, July is Coming—Distributors Must Act on These Four Things!

> For baijiu manufacturers and distributors, annual sales are concentrated around three major festivals. The Dragon Boat Festival, as the first sales node, draws much attention, but after it comes a long off-season. During this period, distributors face issues like price chaos, difficult payment collection, and slack business operations. To address these, distributors should establish monitoring mechanisms, implement reward and penalty systems for payments, shift business focus to terminal construction, and research competitors.

For baijiu manufacturers and distributors, annual sales are mainly concentrated around three major festivals. Manufacturers are accustomed to running promotions during festivals, and terminals have developed the habit of not selling without promotions.
The Dragon Boat Festival, as the first sales node among the three major festivals, attracts much attention. However, after the festival, a long off-season for baijiu sales begins. During this time, manufacturers and distributors tend to fall into an off-season mindset, and market construction may slacken. Meanwhile, terminals, after a round of policy-driven stockpiling, face inventory pressure, leading to market problems. These are mainly reflected in the following three points:
  * **Price chaos:** Before the Dragon Boat Festival, baijiu manufacturers and distributors pushed products onto terminals through promotions. But as the off-season arrives, baijiu sales decline, while terminals still need to purchase cigarettes, beer, and beverages. Under financial pressure, terminals may distribute products to other channels at low prices, causing cross-channel price undercutting, which directly affects market retail prices.
  * **Difficult payment collection:** Under pressure from market construction and manufacturers, distributors often resort to credit sales during Dragon Boat Festival promotions. However, as the off-season sets in, terminal sales decrease, making it harder for distributors to collect payments, and even leading to bad debts.
  * **Slack business operations:** Many distributors report that during the off-season, salespeople become lazy, sometimes returning early in the afternoon. With poor sales, motivation generally declines.
Therefore, when the off-season arrives, many market problems become prominent. If distributors do not address them promptly, they will not achieve significant sales even in the peak season. In response to the above three problems, the author suggests:
**1. Establish a monitoring mechanism to prevent price undercutting and cross-channel dumping.**
  * **For customers who take large quantities during promotions, supply in batches and according to sales volume.** Do not deliver all goods to terminals at once to avoid large-scale dumping.
  * **Maintain sales ledgers.** If a terminal usually sells 40-50 cases per month but suddenly sells over 200 cases in a month, there is likely a problem. Take timely measures to investigate the cause.
  * **Have salespeople rotate areas.** Record the retail prices of products at visited terminals daily. If prices are below the market retail price, distributors should promptly communicate and coordinate with terminals.
**2. Establish reward and penalty measures for payment collection to ensure a healthy cash flow cycle.**
  * Terminals that pay within the specified period can enjoy corresponding payment discounts or liquor rewards. For example, customers who pay 50% within the payment period can be rewarded with 1 case of liquor; those paying 80% get 3 cases; those paying 100% get 5 cases. For customers who fail to pay on time, cancel their credit sales eligibility.
  * For customers who take large quantities but have consistently low payment enthusiasm, reduce payment risk by recovering some goods or renegotiating sales and purchase policies.
**3. Shift business focus and boost salesperson motivation.**
Shift the work focus from pure sales volume to terminal construction, such as visit rates, atmosphere building, customer relationship maintenance, and payment collection. Specific work content can include:
  * Reward 5 yuan for each new outlet developed by a salesperson per day.
  * Reward 10 yuan for each new atmosphere store built per day (with product display area of no less than 6 faces and more than 3 promotional materials).
  * Reward 200 yuan if a salesperson meets the monthly payment collection target, and 500 yuan if exceeding the target by 50%.
  * Of course, there are also penalties: if an outlet in a salesperson's area is lost, a penalty of 10 yuan per outlet is imposed. If the storefront atmosphere is replaced by competitors, a penalty of 15 yuan per store is imposed.
By breaking down work content and clarifying reward and penalty assessments, salesperson efficiency can be improved, and market construction results enhanced.
**4. Research competitors to know yourself and your enemy.**
After the Dragon Boat Festival, conduct research on competitors' market actions. First, learn from good competitor operational experiences; second, guard against competitor attacks. Refer to the table below for specifics:
**Market Main Competitor Research Table
-| Our Product | Competitor
Total number of outlets|
Number of distributors|
Distribution base price|
Terminal purchase price|
Terminal retail price|
Number of atmosphere stores|
Distributor organization and equipment (personnel, vehicles)|
Source: MicroWine
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