---
title: "Dealer Management Actions Decomposed (IX)"
description: "This section continues the discussion on negotiation tactics with dealers, focusing on methods to convince dealers that they will definitely make money. It covers correcting common misconceptions about promotional 'secrets', detailing specific promotional methods for wholesale, retail, and supermarket channels, and emphasizing the importance of detailed communication and execution in presenting launch plans."
author: "魏庆老师"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-08-13"
language: "en"
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---

# Dealer Management Actions Decomposed (IX)

> This section continues the discussion on negotiation tactics with dealers, focusing on methods to convince dealers that they will definitely make money. It covers correcting common misconceptions about promotional 'secrets', detailing specific promotional methods for wholesale, retail, and supermarket channels, and emphasizing the importance of detailed communication and execution in presenting launch plans.

Review of the previous section:
  1. In the previous section, we learned the first step of the specific routine when sales personnel negotiate with dealers before cooperation and encourage their willingness to cooperate: methods to make dealers feel they "won't lose money"
1) Through the good personal image and professional quality of the sales personnel, let the dealer feel the strength of the manufacturer.
2) Lower the threshold for the first order to dispel the dealer's worries and fears.
3) Reasonable explanation regarding exclusive distribution rights.
4) Emphasize the strictness of the manufacturer's market management system.
5) Emphasize the manufacturer's level of attention.
6) Emphasize the manufacturer's after-sales service and dealer obligations.
7) How to prove to dealers that our products have advantages.
8) How to make dealers feel that product sales are guaranteed.
This section will further learn the specific methods of communication and negotiation with dealers.

III. Specific "moves" in the negotiation "routine"—methods to make dealers feel they will definitely make money
Using the methods from the previous section to communicate: the dealer will see a professional and rigorous salesperson coming to discuss agency matters, the manufacturer has strength, market management is strict, measures against channel conflict and price chaos are effective, the city is a market the manufacturer pays more attention to, the pressure of the first order is small, the product suits local market demand, has advantages over competitors, and indeed has a "visible and tangible" good sales prospect... Such a product is almost certainly not going to lose money. The next step is to enter the communication stage of the launch plan, letting the dealer see how the product will be sold and feel that they will definitely make money.

1. Correcting common misconceptions—searching for promotional "secrets"
When I train at many private enterprises, they always ask with reverence or even mystery: "Teacher Wei, you worked at Coca-Cola and Master Kong for so long, can you tell us about the promotional methods of these two companies?"
People always think that well-known enterprises have some "promotional bible", but this question is actually naive. Even if you haven't eaten pork, you've seen a pig run; you can see what promotions Coca-Cola does just by going to a supermarket. When it comes to promotional methods, all companies are similar. The difference in promotional performance is not in the creativity of the method, but in execution. Whoever can truly execute the promotion well: promotional sales depend on whether the announcement is sufficient, whether the on-site display is attractive, whether the gift selection is targeted; and whether the monitoring and reporting system is implemented during the promotion determines whether promotional items will be intercepted at various levels, and whether promotional gifts will be discounted into the price...
Here, I will reveal the common models of promotional methods for new market launches by multinational companies:

· Wholesale channel inventory loading:
※ Wholesaler ordering meeting: Stack products, gifts, and promotional materials at the dealer's store, distribute flyers in advance, and invite wholesalers to attend the on-site ordering meeting (Note: This method can easily cause wholesalers to hoard inventory maliciously and cut prices, so control the frequency of ordering meetings. Too many ordering meetings will only kill the product. The meeting should be held "swiftly"—flyers should be distributed quickly, and the meeting should be held within three days, otherwise competitors will receive the news and hold their own ordering meeting to intercept. Also, pay attention to the quality of wholesale orders to prevent malicious hoarding.)
※ Wholesaler purchase reward: Wholesalers receive a reward when a single purchase reaches a certain level (Note: This method can easily cause wholesalers to hoard inventory maliciously, cut prices, and dealers to intercept gifts. During execution, widely inform wholesalers, and after the activity, recheck and sample the implementation of gifts.)
※ Wholesale purchase points reward: Wholesalers receive a reward when cumulative purchases reach a certain amount within a specific period (Note: This method can easily cause dealers to report false orders and intercept promotional items. It is best for manufacturer personnel to monitor execution personally. Another benefit of this method is that it can quickly help understand the dealer's downstream customer list.)

· Retail store distribution:
※ Retail store distribution reward: Reward for retail store purchases (Note: Beware of sales personnel "splitting large orders into small ones"—diverting retail store distribution resources to the wholesale market to boost sales, which fails to effectively increase retail store distribution rate. Therefore, when formulating policies, set an upper limit on the quantity per order, and conduct rechecks and samples after the activity.)
※ Retail store case-opening distribution: Lower the threshold for retail stores to take new products, reducing the difficulty of new product distribution. If necessary, the manufacturer will produce small case sizes specifically for new product distribution, or mixed cases with multiple product varieties and flavors. (Note: Discuss case-opening delivery matters with the dealer in advance, provide certain delivery subsidies if necessary, and manufacturer personnel should cooperate with the dealer in assembling and packing mixed cases.)
※ Retail store empty case recycling: Retail stores can return empty cases after selling new products to the dealer for cash, increasing retail store profits (Note: Beware of sales personnel and dealers falsely reporting quantities or using empty cases of other products to cheat cash during the recycling process. Before the activity ends, notify retail stores and wholesalers to quickly seek redemption from the dealer to avoid expiration.)
※ Scratch cards in cases: Scratch cards are included in cases, and retail stores can scratch to win prizes (Note: Use case surfaces and posters to widely inform retail points to prevent dealers from intercepting scratch cards. Small prizes can be redeemed by the dealer, but large prizes must be handled by the company personally to avoid fraudulent claims, and verify afterwards.)
※ Gift in every case: Small gifts are included in cases (Note: Gifts should be attractive, have a longer shelf life than the products in the case, and be announced outside the case to prevent dealer interception.)
※ Limited-time discount coupons for retail stores: The manufacturer prints discount coupons and distributes them to retail stores. Retail stores can enjoy discounts or receive a certain amount of cash rebate when purchasing with the coupons (Note: This method is suitable when the manufacturer has insufficient manpower; the promotional effect is worse than directly holding ordering meetings or vehicle sales with rewards.)

· Maintaining distribution rate and visibility of retail stores and wholesalers, creating fashion, maintaining fashion:
※ Retail store display reward: Retail stores display a certain quantity of products (e.g., 6 packs) in the best shelf position. Manufacturer personnel conduct irregular inspections, and those with qualified displays receive rewards (Note: Must be executed personally by manufacturer personnel, with dedicated personnel at headquarters for rechecks and samples. The frequency of reward redemption should be high: for example, for a one-month display, reward one pack per week, with sales personnel inspecting weekly and redeeming weekly.)
※ Wholesale stack display reward: Wholesalers stack a certain quantity of products (e.g., 20 cases) at the storefront. Manufacturer personnel conduct irregular inspections, and those with qualified displays receive rewards (Note: Must be executed personally by manufacturer personnel, with dedicated personnel at headquarters for rechecks and samples. Usually, empty cases are stacked for ease of operation. For wholesalers who do not comply, increase the frequency of inspections to encourage display. Try to give out rewards 100% in the end; don't create "sworn enemies" in the wholesale market because they didn't get rewards due to a poorly executed activity.)
※ Retail model store: For retail stores with good location and image, carry out a series of arrangements such as product display, poster posting, and banner hanging to make them the image concept store for the product, requiring the store to maintain it for a certain period. Those who qualify receive a larger reward (Note: Consider local city appearance and urban management regulations when setting display and promotional standards. Rewards should be attractive and ideally have promotional effect, such as wall clocks. Also, redeem rewards promptly after the activity, and pay special attention to maintaining good relations with these prime-location stores.)
※ Retail store display rack gift: Give retail stores display racks or even freezers for the product, requiring exclusive use to ensure display effect (Note: If there is no manufacturer office in the area and the manufacturer cannot effectively inspect the sales points, do not do this activity; otherwise, poor execution will result in your own racks being filled with competitors' products.)

· Supermarket channel promotions
※ Supermarket special-shaped displays / supermarket tastings / buy-one-get-one / special prices, etc.

· Consumer promotions (Consumer promotions are divided into two stages: the first stage should focus on attracting first-time tasters, and the second stage encourages consumers to buy in bulk or repeat purchases)
※ Attracting first-time tasters
Sample distribution / discount coupons / gifts with packaging / free trials, tastings / new product theme road shows
※ Second stage: encouraging consumers to buy in bulk or repeat purchases
Collect empty bags for rewards / gift boxes, three-packs, five-packs, case promotions / gift in every case (gifts for consumers such as keychains)

2. How to use communication skills to interpret similar launch promotional methods, turning the ordinary into the extraordinary, and enhancing persuasiveness?
Since there is not much variety in promotional methods, how to communicate the launch plan to dealers? Let him see hope and feel that he will definitely make money.—The details of the launch plan should be as detailed as possible, and pay attention to the following elements:
a) Detailed description: Specify exactly who, at what time, at what place, targeting which customers, what promotion, and expected sales volume.
b) Lay cards on the table: What resources will the manufacturer and dealer each invest, and what manpower and transportation support the dealer needs to provide.
c) Physical display: Show various physical samples to be used in the promotion.
d) Demonstrate professionalism: What techniques will be used when executing the promotion.
e) Explain the rationale: When describing each promotional plan, highlight the design thinking and purpose—why do this promotion? What benefits can this promotion bring to the dealer?
f) Highlight the main line: There must be a progressive relationship between each promotional link, with cause and effect, wave after wave.

Example: (Due to space limitations, this does not demonstrate two-way communication or inductive questioning techniques; it is only a one-way narration by the manufacturer's personnel)
New market development plan for a mature brand of small-pack carbonated beverage (suitable for mom-and-pop stores) in a county-level market:
Boss Zhang, on April 1st, you will purchase 500 cases. Next, our company will cooperate with you to carry out a series of launch promotions.
This time we are promoting 500ml plastic bottle soda, with the main sales channel in retail stores. This brand already has some awareness locally, so starting from wholesale should not face much resistance, and it will move quickly, allowing your first order to be sold into wholesalers' warehouses, laying the foundation for subsequent overall volume growth (first analyze the promotional design thinking—why do this promotion).
The first wave: The manufacturer will support you in doing wholesale market promotions first, distributing to the two major wholesale markets in the city: Huaibei Wholesale and Xiaoxibei Market. In advance, I will go down and give each second-tier wholesaler a happy letter. The content roughly says: "Congratulations to all store owners, your XX beverage has arrived. From now on, XX beverage has tied the knot with local customer Boss Zhang—Boss Zhang has become the dealer for this factory. To celebrate this successful cooperation, a promotional event will be held from April 5th to April 15th. For those who purchase 5 cases, a sun umbrella will be given. The letter will be signed with your name, Boss Zhang, address, phone number, and my (sales rep) mobile as the consultation phone." (Promotional plan description precise to details, pay attention to monitoring; the so-called consultation phone is actually a complaint hotline).
On April 5th, the factory will send 1 IVECO van with body advertising and 3 sales personnel. At that time, you will provide 3 sales reps and 1 vehicle (dealer support resources, lay cards on the table).
On April 5th and 6th, the first two days of the activity, our two vehicles and six people will execute distribution together. For the middle 11 days, you will distribute on your own. On the last two days (14th and 15th), the factory vehicle will come again to support you in wholesale distribution. Gifts will be provided by the company. For each wholesale customer, we will also set up a banner, three posters, and a hanging flag. I have brought samples of these items, as well as photos of wholesale stores we have distributed to in another market (promotional plan description precise to details, show physical samples: happy letters, banners, posters, gifts, photos).
The goal is to achieve an 80% distribution rate in wholesale within ten days, with sales volume reaching 450 cases, basically digesting your first order. Moreover, let every local wholesaler know your name and know that you are cooperating with our company—this will help you build your network, promote future sales, and increase phone orders. (Emphasize the benefits to the dealer).
After the first wave of promotions establishes wholesale distribution, the next step is to help wholesalers move inventory quickly. According to our company's experience, the next step is retail store distribution (each wave of promotion should have a progressive relationship with the previous wave). So, as I just mentioned, for the wholesale distribution from April 7th to April 14th, you will handle it yourself. The vehicle we sent will help you distribute to retail stores. You should allocate two more people to work with us (dealer support resources, lay cards on the table). The policy is buy two bottles get one free, with a maximum purchase of 6 bottles per store. You may wonder why. Our company calls this launch promotion method "hitting the mountain across the river". We just loaded wholesalers with buy five cases get one free, and if we immediately load retail stores with full cases, we cut off the wholesalers' retreat. Our limit of 6 bottles policy actually speeds up wholesale sell-through by distributing to retail stores—think about it: retail stores typically think, if they stock one case and sell three bottles in three days, they say "this product sells slowly"; but if they only stock three bottles and sell them in three days, they feel "this product sells fast". Then they go to the wholesaler, see our products everywhere in the wholesale market, and will order, speeding up wholesale sell-through. This way, we help wholesalers move inventory, channeling the products they bought with the buy five cases get a sun umbrella promotion into retail stores, and increasing their willingness to reorder. (Demonstrate professionalism, specific techniques for this promotion, analyze the promotional design thinking—why do this promotion). The specific operational details of this retail store distribution are as follows... (omitted).
Through the first and second waves of promotions, the product has entered retail stores and wholesalers. Next, the third step is to create and maintain fashion, avoiding terminal sluggishness (each wave of promotion should have a progressive relationship with the previous wave). We plan to conduct a display reward activity from April 20th to May 20th, selecting 50 wholesalers with good locations and 500 retail points on two main streets. At the same time, I will cooperate with you to carry out 10 tasting and sampling activities in major residential areas...
Result: The dealer sees an interlocking, wave-after-wave launch plan, with meticulous and scientific planning, detailed action steps already made, and various physical samples displayed. Moreover, the resources he needs to invest during these promotions are stated in advance. The manufacturer's sales personnel are very professional in executing this plan, and in cooperating with the manufacturer, he will not only gain sales but also learn many useful experiences.

If the above promotional plan communication did not follow the above precautions—
Boss Zhang, you will purchase goods on April 1st, and we will help you with promotions. There will be supermarket buy-one-get-one, residential area tastings, wholesale distribution, retail store distribution, consumer sampling, and a series of activities to support you. Just rest assured!
Result: The dealer will be skeptical about whether the manufacturer can keep its promises and implement these promotions. Even if they can be implemented, the launch steps seem scattered, and whether they can successfully open the market is questionable.

It is particularly emphasized that the promotional plan should highlight the connections between each link. With the same investment and the same promotional steps, different communication methods lead to vastly different results. The persuasiveness of a launch plan should not only be thick but not dull, highlighting details, but also pay attention to analyzing the internal connections between promotional links, making the entire launch plan feel like "eighteen turns of Yangguan", wave after wave.

Preview of the next section:
Even with the above techniques, some dealers will still be skeptical and have various concerns, such as: for well-known products, they complain about low profit; for unknown products with high profit, they worry about poor sales; for high-end packaging, they complain about high prices; for simple packaging, they complain about poor appearance. Especially in industries with a habit of credit sales (such as pesticides), dealers are unwilling to accept cash sales. How to deal with these issues? Detailed in the next section.

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