---
title: "Distributors: Seven Key Points for Distribution Before You Understand Them!"
description: "Distribution is a daily task for every distributor, but effective distribution is not as simple as it seems. The following tips on distribution are intended to help distributor friends. 01 Don't distribute blindly; set goals to be effective. Distribution tests a distributor's basic skills. An effective distribution can expand the number of sales outlets and bring sales, which almost every distributor can anticipate. However, which distributor has clearly defined how many retail outlets to add, how much to increase the distribution rate, how much to increase monthly sales, what gross profit point to control, what the fixed cost ratio is, and to what extent terminal visualization should be achieved before distribution?"
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2018-04-18"
language: "en"
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---

# Distributors: Seven Key Points for Distribution Before You Understand Them!

> Distribution is a daily task for every distributor, but effective distribution is not as simple as it seems. The following tips on distribution are intended to help distributor friends. 01 Don't distribute blindly; set goals to be effective. Distribution tests a distributor's basic skills. An effective distribution can expand the number of sales outlets and bring sales, which almost every distributor can anticipate. However, which distributor has clearly defined how many retail outlets to add, how much to increase the distribution rate, how much to increase monthly sales, what gross profit point to control, what the fixed cost ratio is, and to what extent terminal visualization should be achieved before distribution?

Distribution is a daily task for every distributor, but effective distribution is not as simple as it seems. The following tips on distribution are intended to help distributor friends.

01
**Don't distribute blindly; set goals to be effective**
Distribution tests a distributor's basic skills. An effective distribution can expand the number of sales outlets and bring sales, which almost every distributor can anticipate. However, which distributor has clearly defined how many retail outlets to add, how much to increase the distribution rate, how much to increase monthly sales, what gross profit point to control, what the fixed cost ratio is, and to what extent terminal visualization should be achieved before distribution?

If a distributor can start from the above sub-goals and combine them with the company's actual situation to develop a feasible implementation plan, it will not only clarify the work content and process of sales personnel, but also effectively lay a solid market foundation and gain more benefits and value in subsequent market promotion.

02
**Use price strategies to ensure distribution success**
A successful distribution requires a reasonable product pricing strategy.

If the supply price is too high, terminal stores find it hard to accept, and they lack price advantage when facing consumers; if the supply price is too low, distributors have no profit, terminal stores may not sell at a high price, and the product may be labeled as low-end. So how should product pricing strategy be designed? Product pricing should combine the product's own positioning and characteristics, and formulate differentiated distribution strategies for different products.

**First, for volume products**, that is, products with sales advantages in a certain channel, it is recommended to adopt a parity pricing strategy to help better build the channel;

**Second, for profit products**, that is, products with obvious differentiation from competitors, it is recommended to adopt a high-price strategy, focus on shaping brand image, and provide profit protection for distributors;

**Third, for competitive products**, that is, products of the same grade and type as local competitors, it is recommended to adopt a low-price strategy to combat competitors.

03
**Detail control determines distribution effectiveness**
Distribution is not just about moving products to terminal stores; there are many details that need to be implemented to improve distribution effectiveness and better drive subsequent sales. So, what details must be noted?

1. Clear division of labor: Distribution is usually carried out in groups. The group leader is responsible for communicating with store owners about stocking, while other members are responsible for posting POP, installing hanging nets and strips, stocking shelves, collecting payments, etc.;

2. Each group strictly follows the designated route and area for distribution, cooperating with each other. All matters during distribution are coordinated and resolved by the group leader;

3. All personnel are familiar with sales policies and formulate different promotional policies for different customers, but cannot exceed specified limits;

4. All personnel should patiently and meticulously explain to terminal customers, not be eager for quick success, not focus on the quantity and amount of goods distributed, but only seek to develop blank outlets. For customers who do not make a deal, still smile and leave a good impression for the next distribution.

04
**Strengthen the sales skills of distribution personnel**
During product distribution, the most common problem reported by salespeople is difficulty entering stores. To this end, distributors usually formulate attractive promotional policies to attract retail store owners to stock up, but rarely study the behavior of frontline salespeople. So we often see salespeople enter the store and say, "Boss, do you want product XX?" When they find the owner is not interested, they follow up with, "We have a promotion: buy XX get XX." If the owner remains indifferent, the salesperson is at a loss.

In fact, retail store owners think about two things: making money and low risk. Combining these two points, distribution personnel can follow certain skills when selling.

First, after entering the store, the first thing is to greet the store owner, then introduce yourself, and use confidence to win trust;

Second, introduce the product in detail and accurately, especially explaining the profit structure, to arouse the store owner's interest;

Third, once the store owner is interested, urge him to order immediately, and do a good job of product shelving and seizing ground promotion. After that, provide good after-sales service, encourage the owner, and achieve product sell-through as soon as possible.

05
**Play psychological games with retail store owners**
Sales work tests not only the skills of sales personnel but also psychology. When negotiating distribution with a terminal store owner, it is often a psychological game. Therefore, before distribution, salespeople should fully understand the store owner's psychology and grasp their common psychological traits.

First, salespeople should be clear that if the terminal store owner does not recognize the product, then discussing price and promotional policies will have minimal effect. So when introducing the product, fully demonstrate its selling points and market potential to enhance the owner's confidence in the product;

Second, when the store owner does not have much resistance to the product but still refuses to order, it may be a hint for extra concessions in price policy. At this time, the initiative is in the salesperson's hands.

In addition, salespeople should clarify their stance during negotiation: First, we are bringing profit to retailers, so we should be confident;

Second, we are not just selling products, but also services, and we can deliver them;

Finally, we are not selling goods to terminal stores, but selling through terminal stores.

Only when salespeople agree with these points can they win the psychological game with store owners.

06
**Collect customer information and update the database in a timely manner**
Distribution targets not only old customers but also new customers. Therefore, after completing distribution, customer information should be collected and entered into the relevant database in a timely manner. To avoid errors, it is best to organize customer information after each day's distribution, including the owner's name, address, phone, fax, order quantity, main product categories... as detailed as possible.

Distributors can also set up a dedicated business clerk to collect customer information and conduct phone visits after a round of distribution to inquire about customer inventory and promptly notify the corresponding salesperson to follow up. Although registering customer information is tedious, this data can provide strong support for distributors to implement deep distribution strategies, thereby laying the foundation for the next distribution. Therefore, it is a link that needs to be repeatedly emphasized during the distribution process.

07
**Be prepared for a battle with competitors**
During the distribution process, distributors may encounter counterattacks from competitors, which can disrupt the normal distribution plan and even lead to its failure. Based on the principle of prevention first, distributors should consider various competitor counterattacks when formulating distribution plans. Only in this way can competitors have no chance to interfere, and even if they counterattack, it will be ineffective.

Of course, even the most comprehensive distribution plan may have oversights. If competitor counterattacks affect the normal progress of distribution, it is necessary to be flexible, avoid the strong and attack the weak, and formulate several alternative distribution plans. First, ensure the continuity of distribution actions; second, design based on the defects and loopholes of each distribution plan; third, consider the most likely ways competitors will counterattack.

For example, when initially designing promotional intensity, it should be greater than the promotional intensity competitors might follow, making it impossible for competitors to follow;

Accelerate the distribution speed, prioritize distribution to key areas and terminals, and seize terminal display space and stocking funds;

Pay close attention to key terminals where competitors have already stocked goods, strive to follow up in a timely manner when competitor inventory decreases, and regain lost ground.

Source: Internet


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