Some say distributors and regional managers are as close as fish and water, while others see their relationship as a game of tug-of-war, where either the east wind prevails over the west wind or vice versa. Regardless of which view is correct, both reflect the close connection between distributors and regional managers. It is precisely because of this closeness that many unavoidable conflicts arise between them. On one hand, distributors may vent their dissatisfaction with the manufacturer onto the regional manager; on the other hand, regional managers, in order to meet their targets, constantly urge distributors to stock up and make payments, and may even blame the distributor entirely for poor market development.

To explore how distributors can build good relationships with regional managers, we organized a meeting between distributors and regional managers. The atmosphere was lively, with distributors speaking freely about the qualities they expect in an excellent regional manager, while regional managers analyzed common conflicts and answered questions about how distributors interact with manufacturers.

"Fees" are the main source of conflict

At the start of the meeting, Manager Zhang, a distributor from Northeast China, spoke first: "Actually, we distributors are just in it for profit. Regional managers are supposed to be our money gods, but of course they are also the manufacturer's eyes, since they are on the front lines and the closest to us. But I can never understand why the market support I request and the fees I apply for never come through. I feel like regional managers always break their promises!"

Manager Li, the regional manager for a beer brand in Heilongjiang, took a sip of tea and cleared his throat: "Old Zhang, regional managers have it tough too. We face pressure from three sides: the distributor, the township-level distributors (or terminal retailers), and the company. It's like living in a crack. Actually, the interests of regional managers and distributors are aligned—if we work together to build the market and increase sales, then distributors make a profit, and we also gain benefits and a sense of achievement, which is also capital for the future. In that sense, the fundamental interests of distributors and regional managers are the same. However, in actual market operations, conflicts are inevitable, such as cross-regional selling and price cutting. But the main conflict is the fee issue you mentioned. It's natural for distributors to seek maximum market support fees, but the manufacturer's support is based on sales volume and purchase quantity. For example, our factory planned to invest 450,000 yuan in market support for the first three months, with 150,000 yuan per month. The first batch of support fees is sent with the goods, so the distributor can receive the full amount. The second batch depends on payment collection. If sales are poor and a large amount of goods is still in the warehouse, the distributor will certainly not order more, and the manufacturer will not provide full support fees. Therefore, distributors often feel the manufacturer is untrustworthy, and naturally distrust the regional manager, leading to conflicts."

Manager Wang from Henan then spoke: "I think Manager Li is right. The amount of support fees is the root cause of conflicts between distributors and regional managers, or why the relationship is hard to manage. In fact, this is also a headache for regional managers. On one hand, regional managers have limited authority and are caught between the distributor and the manufacturer. On the other hand, there are issues with the implementation of company policies. For example, when we help a distributor design a promotion, the plan must be submitted to the head office for approval. But because the head office is slow to respond and inefficient, approval often takes a month, which also makes distributors distrust the company and even the regional manager. Additionally, I want to remind distributor friends: when signing contracts, be sure to clarify market support fees to avoid future conflicts. For instance, if the manufacturer promises to provide 30 promoters in batches over the first three months, many distributors interpret it as 30 promoters each time each month, totaling 90 promoters, and then think the manufacturer's support is insufficient. I believe that once distributors clarify the conditions of the manufacturer's fee support, misunderstandings about regional managers will disappear. Once this main conflict is resolved, the relationship between distributors and regional managers will become harmonious."

Avoid short-sighted collusion

After reaching a consensus on the root causes of conflicts, the conversation became more amicable and topics expanded. Some distributors mentioned that regional managers from certain well-known companies often demand meals, gifts, and bribes, and some even collude with distributors to inflate sales figures in exchange for more support fees from the manufacturer. In reality, many distributors spend significant money to build personal relationships with managers to gain extra benefits, but when the regional manager changes, the distributor often ends up with nothing.

Manager Zhao from Jiangsu shared a case: Manager Zhang from Nantong spotted a beverage product at last autumn's sugar and wine fair and expressed interest in cooperating with the manufacturer. Early this year, the manufacturer sent business manager Lao Li to inspect Zhang's qualifications. Following a friend's advice, Zhang gave Lao Li a big red envelope. After a hearty meal and drinks, Lao Li patted Zhang on the shoulder and said, "From now on, we're brothers. We'll make money together." In April, Zhang received his first shipment, but he didn't spend a cent of the market support fees that came with the goods; he split them evenly with Lao Li. Subsequently, Lao Li urged Zhang to keep paying and ordering more goods to get more market support. After paying 600,000 yuan, Zhang became worried about the mountain of products. Although he received advertising support from the company, the goods weren't distributed, and whether they would sell was a big question. Increasingly anxious, Zhang sent a fax to the company about his inventory and market situation. But Lao Li got wind of it and fled on the same day. The company then audited the market and revoked Zhang's distribution rights. Zhang not only failed to get rich but also lost credibility with the company and local distributors.

After telling this story, Manager Zhao reminded distributor friends to always remember that they are cooperating with the manufacturer, not trading with an individual. Therefore, developing personal friendships with managers should be based on enhancing cooperation. Adhere to the principle of "trust the company, not the individual," and avoid short-sighted collusion with regional managers.

Beware of verbal promises

In the final stage of the discussion, the focus was on "how to deal with regional managers' blind promises." For any manufacturer, sales volume is a key indicator for evaluating regional managers. As the year-end approaches, regional managers, fearing they won't meet their targets, start pressuring distributors to stock up, and promises become more frequent. For example, they might say, "If you pay more this time, I'll apply to the company to increase market support from 15% to 18%." But in the end, the distributor pays the full amount, the regional manager's promise is not fulfilled, and the distributor is left with a warehouse full of goods instead of a bag of money. In response, some responsible regional managers offered several suggestions to distributor friends:

First, try to choose well-known brands, even if they are OEM products of famous brands, because well-known brands have more standardized market operations and stricter management systems.

Second, when a regional manager makes a promise, be sure to clarify the time for fulfillment. Most importantly, put the promise in writing, have the regional manager sign it, and send it to the company for confirmation. It's best to have the marketing director's signature, because if something is not within company regulations, even if you sign an agreement with the regional manager, it may not be honored by the company.

Third, if the promise is not fulfilled and the distributor suffers losses, this can be used as an opportunity to negotiate with the manufacturer next time.

Finally, we compiled and edited some remarks from regional managers and distributors, including advice from regional managers to distributors, as well as distributors' requirements and ways to get along with regional managers. Although viewpoints differ, the fundamental goal is the same: build a harmonious relationship and jointly develop the market.

Appendix: Remarks from some regional managers and distributors

Manager Zhu from Yantai Asahi Beer, Hebei region: In the early stage of cooperation, both distributors and regional managers are humble and patient. Once the market is developed, both think it's their own achievement. At this time, I suggest distributors go out and see markets outside their own region, so they won't be so proud.

Manager Wu from Henan: A regional manager should not be a "debt collector" for distributors. Helping distributors collect payments and receive goods is the job of a "mediocre manager." A regional manager should first be a "cultured person," a marketing professional, who can offer advice when distributors are confused and remind them when they are proud.

Manager Dai from Heilongjiang: We should support small and medium distributors and not just push goods. For example, if you set a task of 300,000 yuan and they can only complete 200,000 with full effort, then in the future, set the task at 250,000 to 270,000 yuan, not 350,000 to 400,000 just to meet your target.

Manager Li from Sanmenxia Hubin Juice, Henan region: Besides helping distributors expand the market, we should also provide spiritual support, letting distributors understand the company's development prospects, future market plans, and industry trends, so they have an overall grasp of the market.

Manager Chen from Hebei: When dealing with the relationship with the manufacturer's regional manager, first look at the manufacturer's management model. Some manufacturers are distributor-oriented, like Dahaoda Sunflower Seeds; others are regional manager-oriented, like Yedao. Additionally, some private enterprises are generally regional manager-oriented, and these regional managers often have close ties with the boss. But companies that hire professional managers are usually distributor-centric. Once you understand the manufacturer's management model, you can know yourself and your opponent.

Manager Lu from Heilongjiang: I basically operate the market according to my own ideas. If a distributor relies on how much goods the manufacturer sends, what promotional support they give, or the manufacturer's rebates, they won't do well. I think it's best not to directly ask the regional manager for policies. At the end of the year, you can directly talk to the manufacturer's sales director about market conditions and ask for some support.

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