The large-scale practical training course "Sales Manager Managing the Market: The July Battle" is now recruiting students! If you are a professional manager in the FMCG industry, struggling with poor performance, unresolved market issues, or not knowing how to operate in July, don't miss this online live course. For course dates and registration, click 'Read Original'. We can see that most distributors have been fighting on the front lines for years, somewhat like 'military generals' of mountain bandits. Many small and medium distributors are all-capable: delivering goods, collecting payments, negotiating, shipping, unloading... They can do everything, one person can do the work of many, and they are 'models' who fear neither hardship nor fatigue. Even if a factory sends a truckload of more than ten tons of goods, a husband and wife can unload it all in one go and then go deliver. Moreover, too many distributors seem to be stuck in a 'money pit'. When the business is small, they can't afford to hire people, so they do it themselves. When the business grows, they are reluctant to hire people, and even if they do, they only like 'machine-type' salespeople who work without eating. The consequence is that they hire but can't retain. How small and medium distributors improve their business level depends not only on their opportunities and environment, but also on their 'intelligence' in business team management. 1First Look: Vehicle Sales Visits The basic unit of a distributor's operations is mostly the '1+2' model, that is, one vehicle with two people, one driver and one salesperson, which is the standard vehicle sales model. So what is the visit model? It is the '1+1' model, where the salesperson rides a bike to visit terminal outlets individually to take orders, and the driver drives the vehicle to deliver goods according to the orders. The advantage of the vehicle sales model is simple management and immediate transaction; the disadvantage is that salespeople visit large stores (good turnover) but not small stores (poor turnover), often missing stores or skipping stores, casting a wide net but reaping little, with low efficiency and high cost. The advantage of the visit model is that it develops by area, operates meticulously, visits every corner, and delivers accurately with low cost. The disadvantage is that managing the sales team is difficult, and the game of cat and mouse is played daily. Once the sales team slackens, order output is low, and management problems arise. 2Second Look: Business Processes The so-called business processes refer to the distributor's internal management processes, from warehousing and shipping, to delivery and payment collection, to financial management, with complete processes. Many small and medium distributors operate in a boss + boss's wife model, or boss + boss's wife + boss's wife's mother (mother-in-law or relative). Some bosses are 'Monkey King' types, capable of everything: warehouse management, finance, delivery, negotiation, and even loading and unloading themselves. Such distributors are mostly in the early stages of entrepreneurship, and the result is often exhaustion, even if they earn a hard-earned money, it's like 'meat rotting in the pot'—they only know they made money or lost money, but don't know where the profit or loss came from. 3Third Look: Salary Structure The vast majority of distributor salespeople are paid on a base salary + commission model. As long as attendance is sufficient, the base salary is guaranteed. The key lies in the commission part. Many distributors calculate commission based on turnover, i.e., turnover × commission rate = salary. In the early stages of this model, if the rate is set appropriately and salespeople can see and actually receive the commission, it is beneficial for promoting business. But over time, distributors will find that salespeople only sell old products and bestsellers, ignoring new products or non-bestsellers. Even worse, to achieve turnover, salespeople may manipulate prices, promotions, or even payment collections. For distributors, it is essential to elevate the assessment model for salespeople to a management level. Assessment is the 'command flag' in the distributor's hands; where the flag points is the direction for the sales team to attack. Regarding assessment indicators, it is normal for salespeople to have a 'policy above, countermeasures below' mentality, but distributors must be 'a foot higher than the devil'. For example, after finding that the base salary + commission model is ineffective, distributors can introduce a category-based assessment method, or combine it with new products, adopt 'special case' commissions, set a commission rate per box of new products sold, and change monthly commissions to same-day settlement. Continuously fine-tune assessment indicators so that while salespeople keep their eyes on commission wages, the distributor's operational focus changes with the indicators. 4Fourth Look: Territory Division In the early stages, distributor management is mostly 'bandit-style'. On the mountain, the distributor waves his hand and says, 'Brothers, down the mountain there is fine wine and treasure! Go!' Then a group of salespeople scatter, fighting and killing, eating meat and drinking soup! East and west of the city are not distinguished, and after delivering goods, they fight among themselves: you took my job, I fought for your territory. Several vehicles fly around, and the money earned isn't enough for gas. But after adopting territory division management, not only can the above problems be solved, but the key is that the distributor can let his subordinates each show their talents. When problems arise in local markets, they can be discovered and remedied in time, and the distributor can master resource allocation in the sales team. 5Fifth Look: Assessment Results At the end of the month, the distributor pays his subordinates and asks, 'Zhang San, how much did you get?' Zhang San: '1860 yuan.' Ask: 'Do you know how this salary came about?' Zhang San: 'I don't know!' This is the problem of chaotic financial systems. If the distributor company can also formulate a transparent financial system and processes, this problem can be solved, allowing employees to understand clearly, feel stable, and work wholeheartedly. For example, Zhang San answers: 'This month my base salary is 900 yuan, plus sales commission of 360 yuan, selling 2000 units of new products with a commission of 700 yuan, and a deduction of 100 yuan for exceeding the gas quota.' This is the ideal state. 6Sixth Look: Commission Orientation When the sales team is immature, commission-based management is a common tool for distributors. Once the distributor's management matures, they mostly adopt a 'contract system', that is, contracting the vehicle and market to subordinates, with the distributor only owning the warehouse and being responsible for contacting the factory. Under the commission model, small and medium distributors often have too simple management systems; having a simple ledger is already good, and data aggregation and information transmission are difficult. Setting commission rates mostly relies on experience. The assessment model may remain unchanged for years, often resulting in a situation where salespeople do more or less the same. Salespeople appear diligent and dedicated in the warehouse, but once out, they play hide-and-seek, even using the vehicle for private errands, sneaking off to internet cafes, or gathering for mahjong. The distributor is kept in the dark, sitting at home listening to salespeople complain: 'The market is tough, tougher than climbing to heaven!' The main reason for this phenomenon is the 'big pot rice' assessment mechanism. The base salary accounts for more than half of the salesperson's income, and commissions on bestsellers account for the other half. Everyone is harmonious, and salaries are similar. With the guarantee of old bestsellers, everyone can earn about the same salary with their eyes closed, without needing to worry or work too hard! The initial commission model for distributors can be base salary + turnover commission; the intermediate model is base salary + category commission + new product special case; the advanced model is turnover commission + category commission + performance improvement commission. For example, a distributor can set an annual performance growth commission for salespeople, adding a 1000 yuan bonus to reward the top few salespeople with the fastest annual performance growth, or reward the top few with the fastest monthly growth compared to the previous month. As long as methods are diverse, rewards are in place, salespeople's enthusiasm is boosted, reward standards are clear, and assessments are conducted daily, giving everyone the desire to strive for progress, the team will be a 'howling' sales team. 7Seventh Look: Bottle Return Commission For beer distributors, it is well known that beer is bulky and low-value in logistics. The key is that bottle recycling occupies an important position in the business process. If the distributor does not put effort into the bottle return link, there will be a 'one-shot deal': the terminal accepts the goods, but the bottles either have no one to take them, or they are sold as glass waste for a few cents per bottle. If the distributor sets the bottle return commission for salespeople improperly, there will also be the problem of salespeople only delivering goods but not returning bottles, leading to increasing terminal complaints, gradual loss of outlets, and inevitably sales problems. 8Eighth Look: Driver and Salesperson Salary Composition In the distributor's '1+2' business model, the driver and salesperson are a combat unit, more like two grasshoppers tied to the same rope. Without unified coordination, efficiency is low and internal friction is constant. When setting assessment indicators, the distributor must consider the integrity of this combat unit, clarify the superior-subordinate relationship between the two, and link the driver's salary to the salesperson's salary, meaning the driver's salary level depends on the salesperson's salary amount. For distributor salespeople, even if the boss grabs their ears every morning and shouts 'Sell the wine well!', they will turn a deaf ear once out the door. Because no distributor salesperson is willing to do what is 'hoped for'; they only do what is assessed. Because only assessment determines their income. Therefore, distributors must work on and perfect their internal assessment system, striving to enhance internal management to achieve improved market competitiveness. By looking at a distributor through these eight dimensions, you can clearly see the distributor's management level and capability. Eight Phenomena of Distributor Salespeople + Eight Dimensions to Assess a Distributor = A Physical Examination Report of the Distributor's Internal Management! This article is excerpted from Mr. Fang Gang's book "FMCG Veterans All Do This: Regional Manager's Playbook". -END- The best FMCG distributor learning platform in China Dedicated to providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]