Distributors are the first ticket for manufacturers to enter the market. It is no exaggeration to say that the quality of your distributors determines the quality of your market! Given the importance of distributors, how can companies retain them in the actual marketing process? This article shares the following ten tips: 1. Make distributors feel that following you is profitable Pursuing profit is the nature of businessmen, and distributors are no exception. Whether your product can make money for distributors is the fundamental factor in retaining them! Telling distributors the 'profit story' and prompting them to move from heart to action is always the most important part of distributor management. 2. Provide distributors with the 'magic bullet' to make money Your 'profit story' is vivid enough, and distributors are tempted, but they still hesitate to act! Why? Because distributors still have concerns! The biggest concern is how exactly to make the money promised in the 'profit story'. Therefore, companies should provide distributors with a complete set of market operation methods, telling them which products to choose as main products, how to distribute and enter stores, how to do display and promotion after entering, how to manage inventory, how to manage product dates, etc. Let distributors feel that as long as they follow the company's approach, the 'profit story' will become reality! This is also what scholars often mention: frontline managers should act as 'business consultants' for distributors. 3. Let distributors make money 'steadily' 'Steadily' making money means that the company's market management should be standardized, with the most important aspects being regional market protection and price order management. Regional market protection means that within the distributor's exclusive area (as stipulated in the contract), the company cannot arbitrarily add new distributors, and must severely punish cross-regional dumping to ensure each distributor can cultivate their own 'one acre of land' with peace of mind. Price order management means that the company should set a price system for all channel members, such as the distributor's selling price, the sub-distributor's (second-tier) selling price, and the terminal retail price. At the same time, the company should pay close attention to actual market prices and use effective management measures to stop any channel member from disrupting prices, thereby ensuring the profits of all channel members. 4. Make distributors feel your 'devotion' No distributor wants to do a 'one-shot deal' with a company, except for those with ulterior motives. Distributors' psychological need is: they want to retain the agency rights for products that can make money. In actual market management, companies should establish the concept of not easily replacing distributors unless absolutely necessary, and use practical actions to give distributors a strong sense of security. If distributors fail to meet certain requirements, the company should make every effort to help them meet the standards. For example, if the distributor's network coverage cannot meet the company's requirements, the company can achieve this by developing sub-distributors under the distributor, rather than blindly replacing them with 'larger' distributors. 5. Make distributors 'admire' your professional expertise With increasingly fierce market competition, distributors' business is becoming more difficult, and their traditional business models are gradually failing. The degree to which distributors 'depend' on you is determined by whether the company can guide distributors to grow through its professional market operation methods! 6. Make distributors 'respect' your refined management level As overall marketing activities become more refined, companies need to keep pace with the times and gradually achieve refined management of distributors. Refined management is reflected in every detail of distributor management. For example, in inventory management, not only should we pay attention to safety stock and first-in-first-out, but also to product stacking requirements (environment, temperature, stacking height, etc.). As the saying goes, details determine success or failure! 7. Make distributors 'moved' by your sense of responsibility In actual distributor management, many conflicts between distributors and companies are caused by the irresponsibility of frontline distributor managers. For example, failing to promptly address and resolve issues with products with poor dates in the distributor's warehouse, leading to product expiration, or failing to promptly apply for and settle promotional expenses. A sense of responsibility is the foundation of trust, and only trust leads to loyalty! 8. Make distributors 'respect' your staff's ethical standards The company's image in the minds of distributors is not built through advertising or brochures, but through the words and actions of employees, especially frontline distributor managers! The professional ethics of employees directly determine the company's image in the eyes of distributors. 9. Let your service 'warm' distributors This aspect mainly refers to improving the service level of the finance and logistics departments that are in close contact with distributors. In reality, many companies have poor service levels in logistics and especially finance, which directly affects distributors' overall perception of the company. For example, cumbersome reimbursement procedures, slow reimbursement, untimely logistics delivery, and shipping errors! To a large extent, managing distributors means serving them. High-quality service naturally makes distributors feel the company's sense of responsibility! 10. Let distributors embrace your corporate culture Different companies form different corporate cultures due to factors such as historical background, product categories, geographical location, and the founder's personality! In actual distributor management, companies should consciously 'transmit' their culture to distributors and gradually influence them to accept it, for example through meetings or activities, and by regularly mailing internal publications. - END- The best FMCG distributor learning platform in China Dedicated to providing professional, practical, and actionable tutorials for companies and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Eighteen Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet and Brands | 016 Distributor B2B Transformation | [Long press QR code to follow]
Dealer Operations · Management & Methods
How Can Manufacturers Make Distributors Indispensable?
Distributors are the first ticket for manufacturers to enter the market. It is no exaggeration to say that the quality of your distributors determines the quality of your market! Given the importance of distributors, how can companies retain them in the actual marketing process? This article shares the following ten tips: 1. Make distributors feel that following you is profitable; 2. Provide distributors with the 'magic bullet' to make money; 3. Let distributors make money 'steadily'; 4. Make distributors feel your 'devotion'; 5. Make distributors 'admire' your professional expertise; 6. Make distributors 'respect' your refined management; 7. Make distributors 'moved' by your sense of responsibility; 8. Make distributors 'respect' your staff's ethical standards; 9. Let your service 'warm' distributors; 10. Let distributors embrace your corporate culture.
