Introduction When discussing game theory, one cannot avoid the famous Prisoner's Dilemma. We all know that if both prisoners refuse to confess, both benefit the most; if one confesses, the confessor receives a reward while the non-confessor may face greater punishment; if both confess, both are punished. As a result, we see both parties punished. This is based on human nature, where people always consider the way they benefit the most, ignoring the overall environment. When it comes to the game between dealers and manufacturers, theoretically it does not exist. Why? In this game, because dealers and manufacturers have unequal resources, dealers are in a weak position, so they mostly cooperate. Today, when I mention game theory, I mean that dealers and manufacturers compete for resource investment. That is, dealers compete for the maximization of manufacturer resources in their local markets, not against the manufacturer. In the previous chapter, we helped dealer friends sort out their products. Once the product is determined, we need to fight for the maximum resource investment for this product from the manufacturer. At this point, some dealers understand and say, "Are you telling me to build a good relationship with the manufacturer's person in charge, give him gifts, and let him tilt resources towards me?" I solemnly declare that this is absolutely not what I mean. Not to mention that bribery is against national conditions, but bribery is not long-lasting and increases communication costs, complicating what was originally a good sales process. You can bribe, and others can too, so I firmly oppose bribery marketing. Once you have a financial relationship with manufacturer personnel, they will be cautious about your feelings, thus unable to truly guide your work, and this will affect market development. What I mean by competing with manufacturers for maximum resources is through market-oriented methods. We all know that resources are limited. Whoever gets resources first, and whoever gets more resources, their market is likely to enter growth or extend maturity first, and they can steadily earn profits. So how to compete with manufacturers? Teacher Yipian Xiaozhou says that dealers must do the following: Dealers must have a stable and passionate team. Some say capital is the first priority, but I say that is superficial. If there is a good product, capital is not a problem in today's society. It's not that you lack capital; it's that hot money cannot find good projects. Without a team, even the best products and projects will be shelved in the warehouse. So, a stable and passionate team is the first point. How to build such a team? Here are a few simple points:

  1. Does the team have a soul figure? Generally, the dealer himself is the soul figure. When the team is small, no system is needed; people can lead by example. The leader's exemplary behavior is the best management.
  2. Is there a salary gap in the team, or is it still a "big pot" (equal distribution)? Where there is a role model, there is motivation. We often hear terminal salespeople say, "So-and-so's company pays really high salaries, one person can earn over ten thousand a month, with commissions alone reaching seven or eight thousand." Everyone present marvels and thinks about going to that trading company. Actually, what they hear is the salary of the role model or the "head wolf" of that company; others may not earn that much. Don't blame them for generalizing; it's a common issue. For example, in a race, we always remember the first place and the champion, but it's hard to remember second and third. Of course, the eternal second, Lee Chong Wei, is an exception.
  3. Does the team have a sense of family? If a team only knows about making money and charging forward to achieve goals, it is pale. Only when the concept of family is integrated will the team's implementation be more cohesive. I once visited a large dealer in person, and their family concept was deeply rooted. I remember when we were touring the market with their supermarket supervisor, we saw a circulation store promoting a competitor's product. The supervisor immediately called the circulation supervisor. I asked why, since circulation wasn't his responsibility. He replied, "We are a family. If we are indifferent to each other, are we still a family?" I couldn't help but admire the boss's foresight in managing employees to such an extent. Indeed, this client ranked first in sales in the local office for several consecutive years, and importantly, their profits were also first. Because their team could sell products that were hard to move elsewhere as scarce items at high prices, all thanks to their family-style management. Everyone treats things as their own business, which is better than any supervision, assessment, or management tool. If you have such a team, you can invite manufacturer personnel to visit, from morning meetings to terminal construction, to see your staff's condition. Few manufacturers would be unwilling to invest resources in you, as they also hope their resources can yield results quickly. A good terminal network and customer relationships. In this era, talking about customer relationships might make some dealers sneer. Yes, let's ask ourselves: as the boss of a trading company, how long have you not been to the market? You might prefer to talk about strategy, ideas, and build relationships with relevant departments, but you have truly forgotten to have a good chat with your bread and butter. Who are the bread and butter of dealers? Not the manufacturers, not the social elites, but the terminal retailers. How many cases do we have around us where a couple started a business with a tricycle, then established a trading company, and then tried to build relationships with the government to become a CPPCC member? In the end, the CPPCC membership had no substantive effect, just sponsoring annual trips. So, as a dealer, you should really communicate with your bread and butter. It's not necessarily about treating them to meals, but regular visits to understand their current profitability and the service of your staff. Terminal retailers will be very grateful and actively recommend your products, especially in county-level markets below second-tier cities. Whether the trading company operates products in a divisionalized structure. Nowadays, every manufacturer hopes for a dedicated service team. The old model of a husband-and-wife team, all relatives in charge, acting as both salesperson and driver, not distinguishing between manufacturers or product categories, and loading everything on one truck, is outdated. The divisionalized structure is not afraid of product diversification; each brand has independent offices and dedicated teams. Of course, you don't need to be so confident as to represent both Coca-Cola and Pepsi, or both Master Kong and Uni-President; manufacturers would definitely not agree. As long as dealers achieve the above three points, they can sit down with manufacturers and truly compete. How the manufacturer positions the product, what effects and goals to achieve, and how policies are supported, then team deployment can begin. Let me ask you a question: where do you put your best talent? You might say, "Of course, on the hardest bones or new products, because they are the most combat-effective." If we really do this, your team may be close to disbanding. Let me analyze the reasons: We all know that hard bones are hard to chew and not easy to produce performance. Without performance, there is no income. Why would an excellent salesperson stay with you for a low salary on a hard bone when they could switch to a job that easily pays high wages? We think that new products have high commissions and quick results, allowing excellent personnel to earn more. This is exactly wrong. Excellence lies in good customer relationships, not necessarily in being meticulous. They are good at distribution and stocking because of good relationships, but precisely because of this, once a new product sells poorly, later slow-moving and returns are troublesome. Therefore: where should excellent salespeople be placed? Of course, on star products and cash cow products that bring substantial profits to the dealer. In an economic downturn, we must place excellent personnel on the brands that generate the most profit to seize results. As for products in the cultivation period, only those with average ability but hardworking and reliable should do them. They have high execution and will strictly follow the intentions of the manufacturer and dealer. The hard bones should be given to mischievous salespeople, just like developing a new continent. If they have the ability, they will succeed; if not, they will be eliminated, causing minimal loss to the dealer's team. Let's summarize the key principles of personnel deployment (the principle of concentrating superior forces to strike key targets):
  • Core and excellent personnel must be used on star or cash cow products, i.e., the products with the best cooperation with the manufacturer, highest profit, and best sales. If only one choice is allowed, it should be the best-selling product, followed by the product with the best manufacturer support and cooperation.
  • Products with good profit and good manufacturer cooperation but no short-term sales can be assigned a dedicated team, but not core personnel.
  • Products with good profit, average manufacturer support and cooperation, and average sales can be placed in general distribution vehicles, i.e., no dedicated team needed. General vehicles cover all products, characterized by a full range but no obvious sales advantage. When a product's sales reach a certain level, it can enter a dedicated team.
  • Products with low profit, poor manufacturer support and cooperation, and no sales improvement should be directly replaced, without supporting any personnel. -END- The best FMCG dealer learning platform in China Focusing on providing professional, practical, and applicable tutorials for enterprises and dealers Committed to helping Chinese FMCG dealers 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 Dealer Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Dealers | 008 Dealer Development | 009 Dealer 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 Dealer B2B Transformation | [Long press QR code to follow]