We can see that distributors often work on the front lines all year round, somewhat like mountain-bandit-style warriors. Many small and medium distributors are versatile: they can deliver, collect payments, negotiate, ship, unload... they can do everything, one person can do the work of N, and they are models of fearing neither hardship nor fatigue. Even if a manufacturer sends a truck with over ten tons of goods, a couple can unload it all in one go and then go make deliveries.

Moreover, too many distributors seem stuck in a money trap. When the business is small, they can't afford to hire people, so they do it themselves. When the business grows, they are reluctant to hire, and even if they do, they only like "machine-type" salespeople who work without eating. The consequence is that they hire but can't retain.

How can small and medium distributors improve their operational level? It depends not only on their opportunities and environment but also on their "intelligence" in managing their sales teams.

  • First Look: Vehicle Sales Visits The basic combat unit for distributors is mostly a 1+2 model, meaning one vehicle and two people, one driver and one salesperson. This is the standard vehicle sales model.

What is the visit model? It's the 1+1 model, where the salesperson rides a bike to visit terminal outlets individually to take orders, and the driver delivers according to the orders. The advantage of the vehicle sales model is simple management and immediate transactions; the disadvantage is that salespeople visit large stores (those with good turnover) but not small stores (those with poor turnover), often missing stores or skipping them, casting a wide net with low efficiency and high cost.

The advantage of the visit model is that it develops by area, operates meticulously, visits are pervasive, and delivery is precise with low cost. The disadvantage is that managing the sales team is difficult, and the cat-and-mouse game happens daily. Once the sales team slackens, order output drops, and management problems arise.

  • Second Look: Business Processes The so-called business process refers to the internal management process of the distributor, from warehousing and shipping to delivery and payment collection, to financial management. Many small and medium distributors operate with a boss + boss's wife model, or boss + boss's wife + boss's wife's mother (mother-in-law or relatives).

Some bosses are "Monkey King" types, capable of everything: warehouse management, finance, delivery, negotiation, and even loading and unloading themselves. Such distributors are mostly in the early stages of entrepreneurship, and the result is often exhaustion. Even if they earn a hard-earned profit, it's like "meat rotting in the pot"—they only know they made or lost money but don't know where the profit or loss came from.

  • Third Look: Salary Structure Most distributors pay salespeople on a base salary + commission model. As long as attendance is sufficient, the base salary is guaranteed. The key lies in the commission part. Many distributors calculate commissions based on turnover: turnover × commission coefficient = salary.

In the early stages of this model, if the coefficient is set appropriately and salespeople can see and actually receive the commission, it benefits sales promotion. But over time, distributors will find that salespeople only sell old bestsellers and ignore new or non-best-selling products. Worse, to achieve turnover targets, salespeople may manipulate prices, promotions, or even payment collection.

For distributors, it's essential to elevate the assessment model to a management level. Assessment is the "command flag" in the distributor's hands; wherever the flag points, that's the direction for the sales team to attack. Regarding assessment indicators, it's normal for salespeople to have a "policies from above, countermeasures from below" mentality, but distributors must be "the law is high, and the devil is higher."

For example, after discovering that the base salary + commission model isn't working, distributors can introduce a category-based assessment method, or combine it with new products to adopt a "special project" commission, setting a commission coefficient for each new product sold, and changing monthly commissions to same-day settlement. Continuously fine-tune assessment indicators so that while salespeople focus on commission wages, the distributor's operational priorities are enhanced with the changes in indicators.

  • Fourth Look: Territory Division In the early stages, distributor management is mostly "bandit-style." On the hilltop, the distributor waves his hand: "Brothers, outside the mountain are fine wine and treasure, go get them!" So a group of salespeople scatter, fighting and eating meat and drinking soup! East and west of the city are not distinguished, and after delivering goods, they fight among themselves: you stole my job, I fought for your territory. Several vehicles fly around, and the money earned isn't enough for gas.

Adopting territory division management not only solves these problems but also allows the distributor's subordinates to each show their talents. Problems in local markets can be discovered and remedied in time, and the distributor can master resource allocation within the sales team.

  • Fifth Look: Assessment Results At the end of the month, the distributor pays wages and asks: "Zhang San, how much did you get?" Zhang San: "1,860 yuan." Ask: "Do you know how this salary came about?" Zhang San: "I don't know!" This is the problem of a chaotic financial system.

If the distributor company can also establish a transparent financial system and process, this problem can be solved, allowing employees to understand clearly, feel stable, and focus wholeheartedly on work. For example, Zhang San answers: "This month, my base salary is 900 yuan, plus sales commission of 360 yuan, and for selling 2,000 cases of new product X beer, a commission of 700 yuan, minus 100 yuan for exceeding the gas allowance." This is the ideal state.

  • Sixth Look: Commission Orientation When the sales team is immature, commission-based management is a common tool. Once distributor management matures, they mostly adopt a "contract system," where the vehicle and market are contracted to subordinates, and the distributor just sits in the warehouse, only responsible for contacting the manufacturer. Under the commission model, small and medium distributors have overly simple management systems; having a simple ledger is already good, and data aggregation and information transmission are difficult. Commission coefficients are mostly set based on experience.

Assessment models often remain unchanged for years, leading to a situation where salespeople do more or less and get the same. Salespeople appear diligent in the warehouse, but once out, they play hide-and-seek, even using the vehicle for personal errands, sneaking off to internet cafes, or gathering for mahjong. The distributor is kept in the dark, sitting at home listening to salespeople complain: "The market is tough, harder than climbing to the sky!"

The main reason for this phenomenon is the distributor's "big pot" assessment mechanism. The base salary accounts for more than half of the salesperson's income, and commissions on bestsellers account for the other half. Everyone is harmonious, and wages are similar. With the guarantee of best-selling old products, everyone can earn similar wages with eyes closed, so there's no need to worry much or work too hard!

  1. Initial commission model for distributors: base salary + turnover commission;
  2. Intermediate commission model: base salary + category commission + new product special project;
  3. Advanced commission model: turnover commission + category commission + performance improvement commission.

For example, distributors can set up an annual performance growth commission for salespeople, adding a 1,000 yuan bonus to reward the top few salespeople with the fastest annual performance improvement, or reward those with the fastest month-over-month improvement. As long as methods are diverse, rewards are in place, salespeople's enthusiasm is mobilized, reward standards are clear, and assessments are daily, everyone will have the desire to improve, and the team will be a "howling" sales team.

  • Seventh Look: Bottle Return Commission Beer distributors know well the heavy, low-value nature of beer in logistics. The key is that bottle return occupies an important position in the business process. If distributors don't put effort into the bottle return link, there will be a "one-shot deal": terminals accept the goods, but the bottles either have no one to take them or are sold as glass waste for a few cents per bottle.

If distributors set the bottle return commission improperly, salespeople may only deliver goods and not return bottles, leading to increasing terminal complaints, gradual loss of outlets, and inevitably sales problems.

  • Eighth Look: Driver and Salesperson Wage Structure In the distributor's 1+2 business model, the driver and salesperson are a combat unit, more like two grasshoppers tied to the same rope. Without coordinated action, efficiency is low and internal friction increases. When setting assessment indicators, distributors must consider the integrity of this combat unit, clarify the superior-subordinate relationship between the two, and link the driver's wage to the salesperson's wage—that is, the driver's wage level depends on the salesperson's wage amount.

For distributor salespeople, even if the boss grabs their ears every morning and shouts, "Sell the wine well!" they will turn a deaf ear once out the door. Because distributor salespeople don't want to do what is "hoped for"; they only do what is assessed. Only assessment determines their income. Therefore, distributors must work hard on the internal assessment system, improve it, and strive to achieve market competitiveness through enhanced internal management.

Source: Internet -END-