Friendly Reminder: Click the blue text above, 'FMCG Distributor Professional Consulting,' to learn more about marketing and distributor internal management. Anyone who has been a distributor has likely encountered a few so-called 'big shots' among manufacturer sales reps. These 'big shots,' relying on their 'good brand, big company, and strong connections,' act arrogantly and bossily toward distributors. Some even go so far as to line their own pockets, effectively 'extorting' distributors. They say, 'I work to make money. How much hotel market expense did I apply for on your behalf? How much promotional sponsorship did I secure? How much money did I help you distributors earn? So you should show me some appreciation!' If a distributor shows reluctance, such reps will exercise the 'privileges' granted by the manufacturer: cutting off distribution or switching to another distributor. Nowadays, many liquor manufacturers station sales reps at distributors' locations to assist with market operations. However, some reps have low quality, indulging in eating, drinking, and having fun at the distributor's expense, refusing to follow management, and occupying the distributor's office to chat and loaf. Instead of helping, they create chaos. Many liquor distributors, feeling 'low in status and weak in voice,' reluctantly give commissions to these reps or engage in under-the-table dealings, even bringing reps in as shareholders, just to avoid being replaced. Are small distributors doomed to endure endless 'extortion' from manufacturer reps? How can distributors deal with this 'extortion' and achieve peaceful coexistence and win-win cooperation with resident reps? The wise have their tricks, and heroes have their methods. Manager Yuan, as a new-type distributor with higher education, possesses many new business concepts and ideas. He has built regional market networks according to modern marketing network requirements and conducts meticulous terminal management and expansion. After years of experience in the liquor industry, Manager Yuan shared his 'heart sutra' for dealing with manufacturer reps' 'extortion': Small Satisfaction, Big Suppression Xiao Liu was a sales rep stationed at Manager Yuan's place by a certain liquor company. One day, Xiao Liu suddenly said to Manager Yuan, 'Manager Yuan, my wife just gave birth. What do you think I should do?' Manager Yuan immediately understood that this was the rep asking for money. The rep's implication was: 'My wife had a baby; shouldn't you show some appreciation?' Manager Yuan immediately put on a happy face: 'Congratulations, Manager Liu, on your new daughter! This calls for a celebration. Tonight, I'll treat you to a few drinks at the Celebration Tower.' That evening, after the dinner, Manager Yuan slipped the rep a red envelope with 2,000 yuan. He then told the rep, 'I just called your company's General X. I've booked a banquet at the Celebration Tower and invited General X to attend your child's one-month celebration next month! We'll celebrate together. What do you think, Manager Liu?' Manager Yuan said that with reps like Xiao Liu, you must satisfy them in small matters as much as possible—small satisfaction, big suppression. Better to offend a gentleman than a petty person. But inviting the company's General X was a subtle way to tell the rep, 'Don't get too arrogant; know when to stop.' Close Communication, Distant Relationship In dealing with various liquor manufacturer reps, Manager Yuan has a principle: never get too close to them. Over the years, he has had no particularly troublesome experiences with resident reps, staying vague on small matters and keeping big issues in mind. He basically follows a principle: close communication, distant relationship—each does their own job, communicate often, but don't get too close or too distant. During work hours, everyone stays in their own office and does their own work. They (the reps) handle market research, arrange and implement activities, break down and assign targets, check store distribution, and formulate monthly, quarterly, and annual work plans. We (the distributors) handle our own work like distribution, payment collection, and transactions with retail outlets. At morning meetings, we touch base, and when there are issues, we communicate more, without interfering or commanding each other. This way, we can basically coexist peacefully. Take the Initiative, Turn Passive into Active Manager Yuan said that who holds the upper hand in the relationship between distributor and resident rep actually reflects the power struggle in the manufacturer-distributor game. In competitive games, take the initiative. The manufacturer sends reps for two purposes: coordination and supervision. When the distributor is small, the rep has higher status and likes to issue orders and give random commands. When the distributor grows stronger, they may look down on the rep and bypass them to report directly to higher-ups. This isn't right, but it's normal. For the brands Manager Yuan handles, previously the manufacturer sent reps to manage, and he had to cooperate unconditionally. Now, their status is equal, and he can even direct them. If they're not useful, he says, he can just report to the manufacturer's leadership and have them replaced, let alone fear being 'extorted' by them! Turn Their Own Tactics Against Them Some manufacturer reps are arrogant because they think their company is a big brand, a big company, and they may have 'strong' connections with certain leaders. They believe that being sent to a region makes it their own territory, and they'll move on after a short stint—'this year in Jiangsu, next year maybe not in Nanjing.' They think, 'Use it or lose it; fatten myself up first!' Manager Yuan suggests that for such reps, we can analyze their psychology. Since they think they're from a 'good brand, big company, with strong connections,' we can report their local behavior to the manufacturer's leadership in a way that seems to praise but actually criticizes. Turn their own tactics against them. After all, a company can't develop by listening only to the one-sided words of a resident rep. The distributor might superficially say that a rep has done a lot for brand promotion, hotel distribution, and channel development, but the company leaders can see through it—the distributor is actually reporting that the resident rep is 'extorting' them in a disguised way! Small Favors, Great Wisdom Disguised 'extortion' is often not the true nature of resident reps. Manager Yuan says that in dealing with them, he leans toward small favors: understand them, care for them, and build good friendships. Most resident reps are young, unmarried people far from home. They're immature, easily discouraged by setbacks, and prone to opportunistic thinking. Manager Yuan is familiar with this situation and naturally becomes an older brother figure. He is very considerate of them in life and work, understands their psychology, helps them solve problems, and makes them feel his sincerity and kindness. At appropriate times, he gives incentives; material rewards are the simplest motivator, so he may set aside some money to reward good reps. In fact, such small favors often reflect great wisdom. People have consciences; treat others as you'd like to be treated. Endure for a While, Avoid Impulse Manager Yuan says that some domestic big-brand liquor companies' reps are often jokingly called 'passers-by' by distributors. That is, the company sends reps as a mere formality—they just relay messages from above, dispensable. Having them reflects the big company's image; not having them is a slight shortcoming. Especially with today's advanced communications, the manufacturer's instructions go directly from headquarters' sales supervisors to distributors, and the rep is just informed in passing, because they have no authority to change instructions. At the same time, companies manage these reps with a more compulsory rotation system—this year in Nanjing, next year maybe Hangzhou. Reps have no fixed base or fixed distributor clients, so distributors have gotten used to ignoring them. Obviously, even if you give them benefits, there's no return. So, when facing disguised 'extortion' from reps, don't take it to heart. Just avoid short-term impulses. Once the rep's term ends, everything returns to 'the same old tune'! In fact, for liquor distributors, how to play the game with manufacturer reps is one of the most important aspects of their work, and achieving mutual benefit and win-win is the ultimate goal. Although many resources may be in the hands of reps, who use this power to 'extort,' when distributors reach a deadlock with reps, they might as well try a different approach. Every company and every person has desires. Talk things out; don't keep things bottled up. Of course, flexible handling based on each person's characteristics is the unchanging principle. -------------------------------------- Like this article? Feel free to click the top right corner to share it on your Moments; About us: WeChat Name: FMCG Distributor Professional Consulting Management Account Intro: 20 years of FMCG distributor operation and management experience, professionally targeting distributor internal affairs: Click the 'Read Original' below to enter our micro-community for interactive communication and questions. Learning and Exchange QQ Group: 344257092 Reply 1 to enter the micro-official website and view historical messages. -----------------------------------------