Why should distributors adopt a quick in, quick out approach? First, to make money

  1. Utilize surplus resources to gain additional income. For many distributors, best-selling and long-selling products are certainly important as they help build networks and relationships. However, they also eagerly engage in short-term or even slow-moving products because profits are usually higher. For instance, during the off-season of their main products, if they have surplus funds, storage space, or sales staff, they can temporarily invest in some short-term products. Some distributors even prefer short-term products because they may offer higher profit margins.
  2. Increase profits by accelerating capital turnover. Faster capital turnover actually enhances the profitability of capital. Distributors should not just rely on earning price differences or rebates; they can use appropriate product mixes, combining long-term and short-term products. Second, to respond to competition
  3. Create a strategic product to attack main competitors: If a small competing brand appears in the market that competes with the distributor's main product and becomes hot, the distributor can take on another small brand to attack the competitor with lower prices, thereby protecting their main product. This is a strategic product.
  4. Enrich the product range within the channel to intercept competitors: Even exclusive distributors may carry some products from strong competitors to enrich their product mix and intercept competing products entering their downstream network. Wholesalers often operate a wide range of categories to maximize satisfaction of downstream network needs. Third, to boost sales volume To meet the manufacturer's sales targets, distributors can take on other products from the manufacturer during peak seasons and achieve more sales through channel bundling. For example, in the liquor industry, Wuliangye and Jiannanchun may use allocation methods to bundle short-term products with their main products, using high-profit products to drive sales of low-profit ones. What short-term products to choose? Distributors often encounter products with attractive profits but low technical barriers. As soon as one distributor starts, others quickly follow, and the product cycle ends abruptly. Should you still do it? What methods can prevent others from entering within a certain period? Actually, there is only one method: push the product to wholesalers and terminals in the shortest possible time, and allocate a portion of the profit margin for terminal promotions to quickly attract consumers, leaving no time for competitors to react or operate.
  5. Good appearance to quickly attract consumers Long-term products may have comprehensive promotion like high-altitude advertising, event marketing, store displays, or promotions, but short-term products do not have such budgets for "long-term investment." Therefore, short-term products must have good appearance, quality without issues, good taste if it's a snack, and attractive packaging.
  6. Low price for quick sell-through Long-term products are generally not hard to sell; the issue is just the speed of capital turnover and profitability. But short-term small brands are different; downstream partners worry about getting stuck with inventory, so products with low prices and low capital requirements are easier to distribute.
  7. Leverage famous brands and quit while ahead A famous brand origin makes it easier to sell anywhere. As soon as a brand sells well in the market, quickly take on its series products. Since Luzhou Tequ became popular in a certain market in 2005, more than thirty products associated with Luzhou appeared within two years. Influential distributors all carried a Luzhou series product, and some generic Luzhou wines even overshadowed the authentic Luzhou Tequ, enjoying great popularity. In fact, distributors of these hot generic brands are well aware that this is just short-term operation and they don't plan to stay long, but doing it is better than not doing it, at least they earn profits. As the Luzhou fever is gradually replaced by local brands, these distributors will slowly reduce corresponding expenditures and quit while ahead. When leveraging a famous brand, follow up quickly and exit decisively, without lingering. Otherwise, a batch of goods will be stuck in the warehouse, and not only will you lose the money earned earlier, but you'll also have to pay extra warehouse rent, truly "throwing good money after bad."
  8. Target the mid-to-low-end market Short-term products are suitable for the mid-to-low-end market, using channels for mid-to-low-end products and choosing customers who are more price-sensitive. Don't expect them to extract added value through "brand" like long-term products.
  9. Fit your own channel characteristics For example, Qike's healthy fiber biscuits might be an opportunity for a distributor who sells wine in supermarkets, but it would be difficult for a distributor who also sells wine but through hotels. At the same time, if short-term products complement existing products, they can better leverage existing channels without additional manpower or material investment, controlling sales risks.
  10. Beware of being trapped If the manufacturer's main product is strong, to win over distributors, they usually supply a limited quantity of short-term products that sell well and have high profits, clearly intended to make money for distributors. If the short-term product is a strategic product for the manufacturer, distributors should be cautious to avoid being trapped. Such products are meant to snipe at competitors; once the competitor's momentum is suppressed, the product's life ends. When dealing with such products, be prepared to make money from the start; if you can't make money, don't force it. Their sales volume is usually small, so if you plan to build sales first and then make money, it might take forever. Moreover, many strategic products have little investment from the manufacturer, or even lose money, and the manufacturer may intentionally suppress their sales. Quick techniques
  11. Rapid distribution When operating long-term products, many distributors swallow the manufacturer's promotional policies because the brand is strong enough that not passing on promotions may not make much difference. But for short-term products, you must pass them on because short-term products need rapid distribution. Channel promotional policies must be generous, and distributors should have the mindset to share the manufacturer's promotional policies with second-tier distributors. Otherwise, if you keep the policies to yourself, you'll miss the best time to move the goods. On this basis, you also need to employ strategies for rapid distribution, such as: 1.1. Hitchhiking: Use best-selling products to drive the distribution of new products, like using "Oishi" to carry "Milaotou". 1.2. Appropriate initial stocking: For lesser-known brands, it's difficult to demand cash on delivery, so you must provide some initial stock on credit. 1.3. Quantity rewards: For new product launches, use quantity rewards (cash, product, or physical rewards) to stimulate terminal stocking enthusiasm. 1.4. Emotional communication: Distributors can leverage their years of relationship with wholesalers and retail store owners to persuade them to take some stock.
  12. Quick shelf placement After products are distributed to wholesale markets or terminals, they need to be quickly placed on shelves to have a chance to sell. For example, conduct display reward activities in wholesale markets or terminals, or secure good shelf positions or purchase end-cap displays in supermarkets.
  13. Quick consumer pull There should be promotional activities with sufficient intensity to attract consumers and create a hot-selling atmosphere. With limited resources, distributors can choose key areas, key streets, key terminals, etc., to concentrate resources on consumer activities and pull demand. During rapid distribution, distributors should protect their downstream partners. Doing short-term products is about "monetizing" your network resources, not "selling out" your network. Hurting downstream profits and relationships is a losing deal. Therefore, control shipment volumes based on the strength of second-tier distributors to avoid overstocking in individual hands, which could affect other products. This article is excerpted from the management book "The First Book for Liquor Distributors" by Borison Management Books. This book is the first and must-read for liquor distributors! Editor's PS: The editor has selected 1,067 articles from nearly 1,900 published on this official account, categorized into 14 major categories and 57 knowledge points, systematically organizing frontline marketing management content into a library for your learning. From market to customers, covering practical combat and management, all are valuable. Follow the official account and reply with the number "1" to browse the related content.