Negotiation position determines everything This is an era where position determines everything. Between manufacturers and distributors, whoever has higher status holds the power of discourse. When a small manufacturer comes knocking, a distributor may or may not bother to respond; for a large manufacturer, the distributor may have to go to them personally and accept their indifference. Generally, distributors are smaller in scale and strength than manufacturers, but "a mighty dragon cannot crush a local snake." If a distributor cannot become a local power, even if the manufacturer is just a worm, it can still dominate the distributor. Some manufacturers stipulate that distributors cannot handle competing products. That's only until they meet a truly powerful distributor; otherwise, the manufacturer has to make an exception. I know such a distributor who simultaneously represents two brands of instant noodles, and in other markets these two brands are exclusively distributed, but the manufacturers make an exception for this distributor. Both manufacturers recognize that only this distributor can do the best job in the region. Without this distributor, all other options are second-best. What bargaining chips do distributors have? When bargaining with manufacturers, distributors must hold bargaining chips. In different periods, the chips distributors have for bargaining with manufacturers differ. In earlier years, if a distributor had a prime shop in a wholesale market in a central city (or regional goods distribution center) and had some capital, they could attract manufacturers. Because at that time, the "purchase system" was common; as long as goods were displayed in the wholesale market, they could be sold. In those days, the prime shop was the distributor's bargaining chip. How many people still miss the easy money of those years? They say: "Let's stop for now, and when times get better, we'll do it big." They don't know that those good days are gone forever. A few years ago, whoever had more second-tier distributors was more popular with manufacturers. Of course, by then distributors had generally adopted the "delivery system," and truly powerful second-tier distributors no longer came to the wholesale market to purchase goods. In those years, second-tier distributors were the bargaining chips for distributors. Now, except for township second-tier distributors, second-tier distributors in other markets have nearly disappeared. Distributors face end-users directly; whoever controls more end-users has an easier time. Now, end-users are the bargaining chips for distributors. Although many manufacturers have been shouting about "winning at the end-user," reality has taught them that they still rely on distributors to reach end-users. Distributors have bargaining chips and can "hint" at them when needed, or show them clearly. But distributors must remember: do not use your chips to threaten manufacturers. Do what you are capable of Like dating, the relationship between manufacturers and distributors is a two-way selection. Choose a partner based on your own conditions; it must be a match of equal status, and you must act according to your abilities. What abilities you have determine what conditions you can discuss. In the past, most distributors were full-service and all-around. Manufacturers handed everything to distributors except mass advertising. Now, manufacturers generally implement "embedded" management with distributors, and no longer need all-around distributors. What they need most now are distributors with limited service functions. Some manufacturers only use the distributor's capital to complete purchases; in this case, the distributor undertakes limited service functions. Some manufacturers only use the distributor's distribution capabilities; in this case, the distributor only serves as a distribution center with limited service functions, or as a third-party logistics service provider. Some manufacturers (such as baijiu companies) adopt a "borrowed shell" approach, only using the distributor's brand name, while the manufacturer independently operates the market to reduce various taxes and fees. Some manufacturers only want distributors to handle end-users. Some manufacturers only want distributors to handle small retail stores. Some manufacturers only want distributors to handle small wholesale. The emergence of limited-service distributors provides countless new options for distributors with different conditions. Distributors who talk about exclusive agency at the start and policy conditions at the end are becoming fewer, unless the other party is a small manufacturer. How to bargain with manufacturers Successful bargaining requires knowing yourself and your opponent. Distributors should at least know the following about manufacturers: First, the authority of sales managers and salespeople at various levels. Generally, the higher the level, the greater the authority. Don't propose conditions to a salesperson that they cannot promise. Second, find out the authority the manufacturer gives to other distributors, and then demand "national treatment"—enjoy the same authority. If your conditions are the best, keep your mouth shut. Salespeople hate distributors who "take advantage and act innocent." Third, find out the manufacturer's "bottom line" and "maximum requirements" for distributors. Never propose conditions beyond the bottom line or do things beyond it, as that means the breakdown of cooperation; also, try not to meet the manufacturer's "maximum requirements," as that means you lose out. Of course, when dealing with manufacturers, you should also have your own "bottom line" and "maximum requirements." Strategy: Drawing a cake to satisfy hunger The strategy chip is the most important chip. Strategy is not everything, but it is the key to everything. When the substantive chips a distributor holds are insufficient to attract manufacturers, they should learn to "draw a cake to satisfy hunger." Some people prove themselves with historical performance, others by planning for the future. If a distributor can come up with a feasible plan and convince the manufacturer that they can indeed achieve it, that is the distributor's most important chip. However, most distributors are not good at talking, only at doing. They like to say: "Don't worry about the specifics; just rest assured." If you were the manufacturer, would you be assured? If things go wrong, wouldn't there be no chance to remedy it? Sometimes, drawing a cake to satisfy hunger is useful and effective. -END- Original Selection Click the title below to read directly: [Line Sales Representative Practical Operation Guide (with full PPT download attached) Excellent Product Recommendation: The best domestic FMCG distributor learning platform Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly Reply with number 「1」 to view 1067 articles necessary for being a good distributor Including 14 categories and 57 knowledge points From manufacturers to customers/real combat and management All are dry goods If you haven't followed yet, please long-press the QR code below Project consultation | Promotion cooperation Please call To join the group, click: Read the original text