To achieve good sales, products need to improve distribution, but we often encounter situations where terminals are not active in distribution. Here are methods to get terminals moving. 1. Alleviate Concerns Small terminals have limited funds, order small quantities per time, and order frequently; they have poor risk resistance and are cautious in operation, often skeptical of new or untested products. Manufacturers can take appropriate measures to alleviate the concerns of small retail terminals and mobilize their enthusiasm for ordering. 1) Promise that if sales are poor, they can exchange for other best-selling products from the company. 2) Promise unconditional returns. When manufacturers are confident about the sales prospects of their products in certain small terminals, they can promise unconditional returns, eliminating the worries of small terminals and reducing the risk of unsold inventory. 2. Reasonable Profit 1) Profit is the primary need of small terminals. Small terminal owners are very "realistic." If the products they sell do not make money, no matter how well the salesperson speaks, they will not help the manufacturer sell the products. It can be said that small terminals are very "profit-driven." Compared with distributors, small terminals rarely have the opportunity to receive manufacturer rebates, let alone large promotional support or extra red envelope incentives. After a year of hard work, they only earn a thin price difference. Therefore, if a new product offers a high price difference profit, small terminals will prioritize it and recommend it. The size of the product's profit margin is the primary factor influencing small terminals' ordering decisions and directly affects their sales enthusiasm. Only when the product has sufficient profit space will small terminals consider whether the product sells well and can be easily promoted. 2) New products should leave ample retail profit space. Ignoring the profit space of small terminals and causing product promotion to fail is a common phenomenon. When setting pricing strategies for new product launches, it is essential to make a thorough pricing plan, leaving ample retail profit space in the retail link to maintain the high-profit advantage of new products. For new products, the price difference profit must be higher than that of similar products from competitors in local small terminals; even for branded products, it should be close to the average price difference profit. Generally speaking, the profit threshold to attract small terminals' interest should not be lower than 30% for new products, and mature products should maintain above 15%. 3) Shorten channel levels to increase small terminals' price difference profit. In traditional sales channels, manufacturers set up distributors, second-tier wholesalers, or more levels of distributors. By the time products reach small terminals, they have been transferred through multiple layers, resulting in high purchase prices and naturally small price difference profits. Manufacturers can shorten channels and flatten structures to increase small terminals' price difference profits. 3. Benefit Incentives Manufacturers often favor large terminal customers while neglecting small terminals. Many manufacturers' sales incentive plans are specially designed for distributors, second-tier wholesalers, and large terminals, with high thresholds. No matter how hard small terminals try, they find it difficult to enjoy such sales incentives. In fact, small terminals are diverse, and their business performance varies greatly. Many small terminals, based on suitable products, also have strong sales performance. Manufacturers should also introduce suitable products and formulate sales incentive policies with appropriate thresholds for small terminals, giving them the opportunity to taste the "sweetness" of large sales, thereby mobilizing their sales enthusiasm. A single price discount is not enough to fully attract small terminals' interest. Therefore, manufacturers should extend the preferential policies given to distributors and wholesalers to small terminals as well, allowing them to share a portion of the profits. This is also necessary for manufacturers to adapt to fierce market competition. The specific operations for benefit incentives for small terminals are as follows: 1) Gifts with goods Provide physical gifts, point cards, lottery tickets, etc., with full-box orders to stimulate small retail terminals to order by the box, effectively encouraging large orders. 2) Assortment rewards To stimulate small terminals' enthusiasm for ordering and promote product sales, according to different situations, some products can be given assortment rewards. Assortment rewards are redeemed at the time of ordering. 3) Rebate rewards Based on the monthly or quarterly cumulative sales payment total of small terminal stores, formulate rebate reward policies and redeem them promptly. For example, if monthly payment accumulates to 1,000 yuan, an additional 5% to 10% rebate reward is given; if quarterly accumulation reaches 5,000 yuan, another 5% is rewarded. Rebate rewards are redeemed after reaching the reward standard after a certain period; they are post-event rewards. When determining the starting point and different tiers of cumulative discounts, manufacturers should consider off-peak and peak seasons, market growth, sales changes of similar products, and changes in their own product sales. Rewards should not be given in cash but mainly in the form of company products or other gifts. 4) Irregular lucky draws Irregular lucky draws can increase customer relations with small terminals without inducing them to cut prices. To obtain higher rebates or rewards, small terminals often reduce prices. If manufacturers adopt irregular lucky draws, small terminals will not know the exact additional benefits and will naturally not easily reduce prices. 5) Store support Manufacturers can convert rewards for small terminals into other forms of feedback, such as providing store signs, decorating stores, and providing sales equipment. These benefit incentives can differentiate from competitors. While providing benefit incentives, they also carry out terminal publicity, thereby enhancing the competitiveness of products in small terminals. This kind of support is most likely to increase customer loyalty and emotional connection. 4. Price Maintenance While leaving enough profit space for small terminals, manufacturers must strengthen sales channel management to keep prices at specified levels, allowing small terminals to enjoy reasonable profits in the long term. 1) Strengthen price monitoring to maintain terminal price stability. Strengthen price monitoring to keep prices stable, which not only protects the profits of small terminals but also ensures their enthusiasm. Through regular inspections and visits by salespeople, while doing good merchandising, urge small terminals to comply with regional retail price standards, and maintain the retail price system through penalties such as canceling sales incentives and support. 2) Prevent low-price impact from large customers. Large customers have stronger advantages in resources, policies, and sales volume. If manufacturers do not control prices well, the retail prices (group purchase or wholesale prices) of these large customers may be lower than the purchase prices of small terminals, making it unprofitable for small terminals, who then refuse to sell the product. (1) Product differentiation sales Separate the varieties or series sold by large customers and small terminals, with each selling different product varieties or series. This will not cause too much conflict. The varieties sold by small terminals should not be too high-priced, mainly medium and low-end products with simpler packaging. (2) Provide differentiated promotional items as compensation Manufacturers can provide a certain number of differentiated promotional items to small terminals to differentiate from large customers, so that small terminals have promotional items or promotional packaging to offset the impact of large customers' high policy intensity, giving small terminals a psychological balance and preventing resistance. 3) Appropriately reduce distribution density to avoid vicious competition. While not affecting product market share, appropriately reduce distribution density to indirectly divide sales areas for small terminals, such as selecting 1 out of every 3 adjacent small terminals, thereby avoiding vicious competition. 5. Promotional Support Regularly conduct promotional activities in some well-cooperating small retail stores. This has a very good effect on motivating store owners to order and promoting local consumers to buy products. After each small terminal store promotion, the store will usually have a period of hot sales, making the owner very satisfied, and subsequently increasing order quantities. It should be noted that while conducting consumer promotions in small terminals, channel promotions should also be carried out for small terminals. If only consumer promotions are conducted, the enthusiasm of small terminals will be greatly reduced, after all, small terminals are also very "realistic." To achieve success in product promotion, it is necessary to ensure that both consumers and small terminals benefit, so as to mobilize the enthusiasm of small terminals. In consumer promotional activities, take into account the interests of small terminal stores. 6. Emotional Communication Salespeople regularly visit to understand the business conditions of small terminals and the specific needs of store owners, and register the interests, hobbies, birthdays, etc., of store owners and their families for personalized emotional communication. Manufacturers should do a good job in store owner relationship management, establish good relationships with small terminals, and make them proactively recommend products to customers. 7. Professional Guidance Many small terminals are mom-and-pop stores that lack professional knowledge in selling products and have many blind spots and misunderstandings in operation. They need external help to improve their business level. Therefore, manufacturers providing professional guidance to small terminals can greatly promote store owners' trust and dependence on the manufacturer, which can long-term gain sales support from small terminals. 1) Guide the sales work of small terminals Manufacturers guide the sales work of small terminals, including introducing product selling points, sales techniques, product display, POP advertising support, and handling customer complaints. After products are distributed to small terminals, they may not sell well temporarily. This requires sales personnel to use their brains, discover existing problems, and then find solutions based on that, assisting small retail terminals in doing a good job in operation. 2) Provide relevant publications and materials Manufacturers can compile terminal operation publications and materials centered on their own products, preferably published in installments, providing professional answers to various problems encountered by terminals. Source: FMCG Industry Information -END-