Review of Previous Section: In the previous section, we learned the basic skills for sales personnel when negotiating with dealers before cooperation and encouraging their willingness to cooperate. The key points are as follows:
- Know your numbers
- Create the right environment
- Be thick but not dull
- The good fighter moves above the nine heavens
- Two-way communication
This section will further explore specific methods and common patterns for communicating with dealers and formulating new market development plans.
Practical Action Training: Specific "Routines" for Formulating and Communicating New Market Development Plans
Sun Tzu's Art of War says: "Just as water retains no constant shape, so in warfare there are no constant conditions. He who can modify his tactics in relation to his opponent and thereby succeed in winning, may be called a heaven-born captain." This warns us to skillfully apply the rules of warfare while also adapting to local conditions and responding flexibly to the enemy's situation.
Business negotiation should be the same. The five basic skills for dealer negotiation discussed in the previous section are only "internal mental methods," not specific actions. After listening to the course, trainees must verify through practice, experiencing multiple successes and failures, before they can "use them freely and at will," truly making them their own skills.
Can we teach some fixed "routines" for business negotiation skills, truly achieving the effect of "translating concepts into action decomposition, so that trainees can use them in the afternoon after hearing them in the morning"? Based on years of frontline sales experience, the author has summarized targeted solutions to the common doubts and questions dealers have at this stage. If trainees master these, they can achieve the effect of "countering every move" and "subduing the enemy with one move"! The specific content is as follows:
I. Background of Negotiation "Routines": Dealer Psychology Analysis As mentioned in the previous section, when facing a new manufacturer, dealers have mixed feelings of excitement (new profit opportunities) and worry (potential losses if things go wrong). The salesperson's job is to "lift" the excitement and "suppress" the worry.
Most businesspeople, when doing business, first think not about making money, but about how not to lose money. Therefore, when communicating the market development plan with dealers, pay attention to the order of negotiation priorities: first, make the dealer feel that selling our products will not lose money and provide a sense of security, then discuss how much money they can make.
II. Specific "Moves" in Negotiation "Routines" – Methods to Make Dealers Feel They "Won't Lose Money"
Through the salesperson's good personal image and professional quality, let the dealer feel the manufacturer's strength. In the dealer's eyes, the quality of the salesperson represents the quality of the manufacturer. Many small mistakes in behavior (e.g., being late, messy hair, suit sleeve label not removed) can make the dealer feel that the manufacturer is not strong and that cooperating with them is unsafe. Therefore, salespeople should first pay attention to punctuality, personal demeanor, and speech and behavior to present a steady and appropriate professional image. Additionally, as we discussed in the dealer selection process, salespeople should go through "know yourself, know the enemy, know the environment" before visiting dealers. Otherwise, "as soon as the expert stretches out his hand, he knows if there is any skill." If the dealer feels that the manufacturer's salesperson is completely unfamiliar with the local market, it will also cause a trust crisis.
Lower the threshold for the first order to dispel dealers' concerns and fear. Script: Company policy stipulates that all new dealers cannot exceed 50,000 yuan for their first order, with the purpose of protecting dealers' interests and not putting them at too much risk. Analysis: Especially for unfamiliar brands, dealers will inevitably feel uneasy about the first order. Forcing a large first order on dealers is very difficult. Even if you can persuade the dealer, it will also create a negative impression that the product "takes up a lot of capital and inventory, has slow turnover, and is not easy to sell." Professional salespeople should place a reasonable order quantity based on market conditions, understanding that actual market sales are not the dealer's purchase quantity but the terminal consumption. For new dealers, it is even more important to ship in small batches and quickly help the dealer achieve actual sales to encourage their willingness to cooperate. The so-called "limited first order" may not be company policy, but salespeople should keep this in mind!
Reasonable explanation of exclusive distribution rights Emphasizing the contractual guarantee of exclusive distribution rights will make dealers feel safe. However, especially for relatively influential brands, the author does not quite agree to sign long-term exclusive distribution contracts with new dealers without a period of market verification. Once the dealer is incompetent, it will put the manufacturer in a passive position regarding adding/replacing dealers. Suggested countermeasures are as follows: ※ Do not sign an exclusive agency contract; only sign a special authorized distribution contract (Chinese law only protects exclusive agency rights, and the interpretation of distribution rights is not strictly defined). ※ Script: "I don't want to open a second dealer. The more dealers, the higher the manufacturer's transportation costs, the more serious price undercutting and cross-region selling, and the higher management costs. My expectation is to do the market well with the fewest dealers. As long as you can complete the sales task and also complete the process indicators set by the manufacturer, such as distribution rate, merchandising achievement rate, and large supermarket entry rate, the manufacturer will definitely retain your exclusive distribution rights." ※ The contract should clearly define the dealer's basic obligations: including payment terms, sales tasks, required inventory levels, and even process indicators such as distribution rate, account opening rate, merchandising achievement rate, and large supermarket entry rate in the region (first, to guide and constrain the dealer by specifying relatively clear direction and game rules; second, to serve as a theoretical basis for whether to retain exclusive distribution rights).
Emphasize the manufacturer's strict market management system a. The manufacturer's sales policy is often the root cause of market price chaos. When promoting the sales policy to dealers, pay attention to analyzing "our company's sales policy intentionally avoids the pitfall of tiered sales rewards to protect market price order," making dealers feel the manufacturer's formal and rigorous business philosophy, thereby generating trust and security. Example: A foreign company's dealer sales policy ※ Rebate composition ? Reward 0.3 yuan per box sold, another 0.3 yuan for on-time payment, and another 0.3 yuan for exclusive distribution (not distributing designated competing products); ? For price undercutting, cross-region selling, late payment, or violation of exclusive distribution agreement: first time deduct 0.1 yuan/box, second time deduct 0.3 yuan/box, third time deduct 0.5 yuan/box. ※ Reward composition ? Points system with different rewards based on different scores. Complete annual sales task: 5 points; ? Achieve 80% or more account opening rate in designated outer regions: 2 points; ? Qualified supply and display in large supermarkets at 80% or more: 1 point; qualified distribution rate spot check: 2 points; Analysis: From the above example, we can see that large and small customers are on the same starting line. Dealers are not afraid of small sales volume; as long as they work hard (achieve process indicators), they can get sales rewards. The rebate policy focuses on process indicators such as distribution rate, large supermarket market share, logistics (outer region account opening), and exclusive distribution, reflecting the manufacturer's business philosophy of emphasizing market order control. Explanation: Tiered sales reward policies are not unusable. For new brands entering a large blank market, when the manufacturer relies on dealers for sales and the price system has reserved some space, this policy can be adopted – through tiered sales rewards + advertising + product strength to quickly expand market coverage (but it will definitely bring cross-region selling and price undercutting), then adjust the sales policy at an appropriate time to restore price order, the so-called "develop first, regulate later." The sales policy described in this example is suitable for mature brands, mature markets, and enterprises with certain market execution monitoring manpower. b. Emphasize the company's strict governance of cross-region selling and price undercutting: Script: If we cooperate, other things can be discussed (promotions, order quantity, manufacturer support, etc.). But there is one principle that cannot be moved – that is cross-region selling and price undercutting. Our company's principle in governing cross-region selling and price undercutting is to first punish the regional sales supervisor, then punish the dealer. If we catch evidence of a dealer engaging in cross-region selling or price undercutting, "kill without mercy, execute immediately"! Analysis: When the salesperson makes such a "vicious threat" to the dealer before the distribution contract is confirmed, the dealer will not be angry but will feel safe – this manufacturer strictly governs cross-region selling and price undercutting, so my market will not be flooded in the future!
Emphasize the manufacturer's attention: Script: Next year, this market of yours will be our company's model market/pilot/star market. Note: Salespeople should be "precise in expression" when saying this (to avoid dealers having excessive expectations leading to disappointment). A key market is not necessarily a first-tier market; it can also be a key market among third-tier markets!
Emphasize the manufacturer's after-sales service and dealer obligations: Note: Salespeople should leave room in their words and not let dealers feel that "since the manufacturer has promised to replace, compensate, or even return goods for immediate or damaged products, it's okay to stock more!" While promoting the company's after-sales policy to relieve dealers' worries, also tell dealers that "doing business means taking necessary risks," "the dealer/wholesaler's purchase quantity is not sales; the actual consumption at the terminal is the sales," and "don't just think about returning goods if you can't sell; pay attention to terminal sales and inventory management to avoid hidden inventory and even large amounts of expired/defective products."
Product advantages: When talking about the advantages of this product, be specific: first, the product suits the market; second, this product has advantages over currently popular competitors in some aspects. Conversely, if you start by talking about the product's technological content and intrinsic quality, even if it is true, dealers may not be interested or believe it, and the persuasiveness is greatly reduced. a. Common ways to demonstrate that the product suits the local market: ※ Analyze competitor sales Example: Local product W is selling well, with monthly sales of over 7,000 boxes. Our product B is similar in taste and packaging, and has a price advantage, showing that the market can accept this product and there is room for sales. ※ Analyze overall consumption trends Example: Health concepts are gradually prevailing, and the market for healthy foods such as juice/milk/tea is growing. ※ Analyze special consumer groups Example: Shenzhen is a city of immigrants, with many northerners, and most of them miss the food of their hometown. Although our product is not well-known locally, it is a well-known brand in the north, so there is a certain consumer group here. ※ Analyze market characteristics: Example: Ceramic industry – Your city is accelerating the construction of city squares, requiring a large amount of square tiles. There is a large market demand, and our company's products are strong in square tiles. ※ Graft new concepts onto old products Example: Local milk sales are high, indicating that local consumers have a mature health concept. Milk is animal protein, nutritious but high in fat and cholesterol. Our peanut milk and almond milk are plant protein, with nutritional value not inferior to milk, and they are fat-free and can lower blood lipids. As long as we can promote the concept that plant protein is healthier than animal protein locally, think about how big the market is! b. Common ways to demonstrate that the product suits the local market: ※ This product has a price advantage Note: Price advantage should be compared with competitors of the same grade, because you can never be the cheapest product; there will always be someone cheaper. Example: Whether the product is expensive depends on who you compare it with. Compared with ordinary products, we are more expensive, but compared with high-end products on the market, we are still relatively cheap. You can't compare a BMW with an Alto; you have to compare within the same grade. In your market, per capita income is not low, and there is demand for high-end products, but the market is flooded with mid-to-low-end products engaged in price wars. In the high-end segment, only two brands are selling, and competition is not fierce. Our product precisely targets a market segment with demand and less competition, and within this segment, we also have a price advantage. ※ Advantages in efficacy/brand/packaging/advertising/manpower investment/channel profit, etc. Note: When talking about product quality advantages, there must be evidence to be persuasive. So unless the product quality advantage is obvious and comparable, don't talk about it; otherwise, it becomes self-praise. To talk about product quality, sometimes you need to "take a detour" – not talk about the product itself, but only about the advanced production line (imported, unique in China), strong production and R&D strength (emphasizing academic authority), which will have the effect of "turning the detour into the direct." Packaging/advertising/manpower investment/channel profit advantages are more persuasive because they can be quantified and are tangible.
Make the dealer feel that the product will definitely sell well and won't be unsellable a. As mentioned in the previous section, use pre-shipped sales volume to prove the product's sales potential. b. Use local small store sales to prove: Count the sales of this product in one or two local small stores, then analyze with the dealer: "Look, the Xinxing store opposite you, such a small store can sell one box a month (if you don't believe, go ask yourself). Once you become the local general distributor, you know yourself that there are no fewer than 5,000 such stores in this city. Calculate how much 5,000 stores can sell in a month." c. Use sales in neighboring cities to prove, such as: "Your market has 3 million people, while City X has only 2 million, and per capita income is lower than yours. But the dealer there, Zhang San (mobile number 13...), sold 20,000 boxes last year. How many boxes can your city sell? Actually, you should know by comparison." d. Use terminal purchase intention to prove, such as: Take product samples in advance and contact local supermarkets in the name of the manufacturer to obtain good cooperation intention. Then talk to the dealer: "I have already visited your largest supermarket, XX Department Store, and the purchasing manager, Zhang San, is very interested in this product." e. Use the company's favorable situation this year to prove: "Last year, as you know, our company's product prices were severely inverted (give specific numbers and evidence from the market). This year, the company has adopted a new rebate policy. Now you can also see in other markets that price inversion has improved significantly, and profits are smoother. In addition, the company has developed several new products this year (show samples of new products), and has increased advertising (mention which TV station and time slot). Joining our company now is a good time."
In summary, by communicating according to the above routines, the dealer will see a professional and rigorous salesperson coming to discuss agency matters, the manufacturer has strength, the sales policy is incentive-oriented and emphasizes market order, as long as they work hard to complete process indicators, distribution rights and sales rewards will be guaranteed, market management is strict, cross-region selling and price chaos are effectively governed, the city is a market the manufacturer pays attention to, the first order quantity is small, the product suits local market demand and has advantages over competitors, and there is a "visible and tangible" good sales prospect... Such a product is simply a sure win without risk. Truly helping dealers let go of the "fear of losing money" burden, and then moving on to "how to make money" and "how to achieve market vision," is more practical.
It turns out that "just as water retains no constant shape, so in warfare there are no constant conditions" actually means the form is scattered but the spirit is not. Negotiation actually has routines and fixed moves! The secret to victory lies in "he who can modify his tactics in relation to his opponent and thereby succeed in winning, may be called a heaven-born captain" – analyze the opponent's psychology, extract possible doubts and questions, prepare answers in advance, and practice diligently. "Three minutes on stage, ten years of practice off stage." The reason you can "dominate the initiative," "counter every move," and even "subdue the enemy with one move" at the negotiation table is that you know in advance what moves the opponent might make. Negotiation is not about eloquence, but about preparation!
Preview of Next Section: Now that the dealer firmly believes they won't lose money, the next step is how to make money? How to do promotions specifically for new market development? Detailed in the next section.
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