---
title: "How to Boost Regional Sales Through Effective Outlets"
description: "This article discusses how distributors can increase regional sales by focusing on effective outlets rather than just adding more outlets. It provides strategies for acquiring more effective outlets and increasing sales per outlet."
author: "New Distribution"
publisher: "New Distribution"
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published: "2014-05-12"
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# How to Boost Regional Sales Through Effective Outlets

> This article discusses how distributors can increase regional sales by focusing on effective outlets rather than just adding more outlets. It provides strategies for acquiring more effective outlets and increasing sales per outlet.

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Competitive pressure, rising operating costs, and the entry of new distributors are constantly putting distributors at risk of market share erosion. The only way to resolve this is to increase regional sales. However, as market competition intensifies, various market operation methods seem to have become ineffective. So, what should distributors do?
Generally, the formula for regional market sales is: Regional Sales = Number of Outlets × Purchase Quantity per Order × Purchase Frequency / Time. This shows that there are two ways to increase regional sales: first, have more effective outlets to quickly boost sales; second, make each outlet generate more sales.
**Retail Outlet Profit Contribution Survey:** 80% of profits are created by 23% of high-quality outlets; 80% of losses are caused by 36% of poor-quality outlets. High-quality outlets create profits; whoever controls high-quality outlets gains the advantage for sustained profitability. Poor-quality outlets generate losses; whoever is pushed to poor-quality outlets will exit the market.
**Retail Outlets ≠ Effective Outlets**
With the trend of channel sinking in the food industry, many trading companies have begun to directly control outlets to enhance their market control. A typical trading company directly controls anywhere from dozens to over a thousand outlets. However, for a specific product, not all outlets can become effective outlets.
Based on my years of research in the food industry, I believe a retail outlet can only be called an effective outlet if it meets at least one of the following four conditions: First, the outlet's output (sales profit) is greater than the investment in development and maintenance; this type is called a profit-generating outlet. Second, it significantly helps display products, promote the brand, and enhance the corporate image; this is an advertising-type outlet. Third, it is suitable for carrying out various promotional activities; this is a promotion-type outlet. Fourth, it can intercept competitive brands; this is a competition-type outlet.
Typically, a retail outlet does not have just one function, but its primary role may differ.
**How to Have More Effective Outlets?**
Distributors should focus on increasing the number of effective outlets rather than blindly adding outlets, otherwise it puts pressure on the company's personnel, vehicles, and capital. So, how can distributors increase their number of effective outlets? I believe they can start from the following points:
**Control high-quality outlets.** Through surveys, we found that existing distributors mostly classify terminal customers based on their sales scale, such as A-class, B-class, C-class customers. This single-standard classification method fails to achieve an in-depth understanding of terminal customers, and high-quality outlets cannot be defined solely by sales volume. Here, I believe that for high-quality terminal customers, distributors should focus on information control, such as product flow rate, volume, and direction; resource control, such as capital, warehouse, and display positions; and mind control, such as actively recommending the company's products to terminal customers.
**Discover and cultivate potential outlets.** After a period of market operation, each outlet's sales often stabilize at a certain level. At this point, regional growth relies more on newly developed effective outlets, i.e., potential outlets, to drive growth. How to judge an outlet's potential? I think it can be assessed from aspects such as store location, owner's business philosophy, store decoration, and product categories. For example, with adjustments in municipal construction, a terminal store with limited foot traffic may see increased customer flow; such outlets should be promptly included as high-quality terminal customers for deeper cooperation.
**Solve problem outlets.** Some outlets struggle to increase sales due to various issues. If distributors solve these problems, it is equivalent to increasing sales on the original basis. Common outlet problems can be categorized into relationship-type, credibility-type, and quality-type issues. Therefore, distributors should promptly sort out and summarize existing problem outlets and design corresponding solutions for different issues.
**Cut off poor-quality outlets.** These include conflict-type and slow-moving-type outlets. These outlets not only fail to increase sales but also waste the distributor's energy and resources. Therefore, such outlets should be firmly "cut off," and the company's energy and resources should be concentrated on high-quality and potential outlets.
**Develop new outlets.** Another important source of regional growth is the addition of new terminal customers. Distributors should understand that as long as competitors exist, there is still a blank market, and filling a blank market means further improvement in regional sales.
**How to Make Effective Outlets Generate More Sales?**
As mentioned at the beginning, increasing regional sales requires both the support of outlet quantity and the guarantee of per-outlet sales. After introducing methods to increase the number of high-quality outlets, we should think about how to make effective outlets generate more sales. First, it is necessary to clarify the factors affecting per-outlet sales.
Based on the analysis of factors affecting per-outlet sales, I believe the key to increasing per-outlet sales is to do a good job in retail outlet maintenance, promotion, and publicity, and maintain the efficient operation of the distribution network. Specific measures include the following:
★ Maintain order in the terminal market
★ Maintain reasonable price differences
★ Appropriately carry out promotional activities
★ Terminal visualization services
★ Provide value-added services to terminals
★ Maintain good terminal relationships


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