Regional Manager Complains About Local Powerhouse When Wu Weigang, marketing director of Jiangsu G Food Company, settled into the Dalian office, the office director Xiao Zhang immediately began complaining: "Distributor Liu in Dalian is really difficult! He relies on being one of our top sales accounts and shows us no respect. He doesn't cooperate, and at the slightest issue, he goes straight to the boss. When he does contact us, it's only to ask for more funding. We've already tilted our budget toward Dalian, but he shows no gratitude and constantly talks about how things were in the past. A few days ago, I noticed his warehouse stock was low and asked him to make a payment. He came up with a long list of conditions. If we meet them, he pays; if not, he won't. It's pure blackmail!" Wu Weigang took a sip of water and calmly asked, "Why is the Dalian distributor so difficult?" Xiao Zhang replied without hesitation, "It's a habit from the past. He relies on his good relationship with the boss and his high sales volume. The Dalian office used to be too accommodating." Xiao Zhang had just been promoted from sales supervisor and had been in Dalian for only a month. Recently, Dalian's sales had been declining, and headquarters had doubts about his abilities. Xiao Zhang knew this well. Without waiting for Wu to question him, he was eager to shift blame, implying, "It's not that we're incompetent, but the enemy is too cunning." [Analysis] Salespeople are caught between the manufacturer and the distributor. When facing an uncooperative distributor, they often feel squeezed from both sides. Complaining and shifting blame are often their first choice when meeting with superiors. They tend to emphasize "what I did" while ignoring whether they truly "achieved" results, overemphasizing external unfavorable factors to mask their own shortcomings. Leaders must be able to discern the root of the problem in their words without being fooled by appearances—when they report issues, they often exaggerate. Sales Director Remains Composed Wu Weigang looked at Xiao Zhang's flushed face and asked calmly, "What do you think should be done next in the Dalian market?" Xiao Zhang waved his hand decisively and said, "Replace this distributor! Our products have already opened up the Dalian market, and many companies are eager to take over." Wu asked again, "If we switch distributors, the transition in the KA system will involve significant costs. Can you guarantee that a new distributor will do a better job in Dalian?" Xiao Zhang muttered, "Old Liu in Dalian is only so arrogant because he knows the company won't dare to replace him. A new one would be better than the current situation." Wu felt that arguing this point was pointless, so he changed the subject: "I know everyone works on the front lines and it's not easy. Director Zhang has put a lot of thought into the Dalian market recently. All the sales staff in the Dalian office have worked hard. I'm here mainly to see you all. Tonight, I'll treat everyone to dinner as a token of appreciation from the company!" [Analysis] Morale should be boosted, not dampened. Management should focus on motivation; excessive criticism can greatly dampen the enthusiasm of frontline sales staff and hinder problem-solving. Managers should help subordinates solve difficult problems and let them realize their shortcomings through practical actions. Under an excellent leader, there are no unqualified employees. Probing the Bottom Line The next morning, Xiao Zhang accompanied Wu to visit over a dozen supermarkets and hypermarkets in Dalian. Indeed, out-of-stocks were severe, and product displays were messy. More seriously, competitor D had entered Dalian with heavy market investment. The company's products were in a tough spot in Dalian. After lunch, Wu and Xiao Zhang arrived at the office of Dalian distributor B Company as scheduled. Old Liu was already waiting at the door. He shook Wu's hand warmly and said, "President Wu! You're finally here. We've been waiting for you like stars and moon. With you here in Dalian, all problems will be solved!" Wu smiled and replied, "Mr. Liu is our long-time customer and has always supported our work. You've made great contributions to the current situation in Dalian. With your influence in the Dalian market, what problem could possibly stump you?" [Analysis] In the polite exchange, both sides were setting the tone for the meeting. Distributor Liu's praise implied that the company needed to solve the current unfavorable situation in Dalian. To solve these problems, it would naturally follow that his many conditions must be met. Wu understood his meaning and turned his own words against him. By praising Liu, he conveyed that the Dalian market requires cooperation from both sides, and the distributor's support is key to solving problems. Distributors should not adopt a wait-and-see attitude but should actively cooperate with the manufacturer to jointly manage the market. At the start of negotiations, the tone determines the progress. The opening pleasantries hide the true attitudes of both parties. Not being swayed by the other side and gaining a psychological advantage at the start are essential for a skilled negotiator. Guiding with the Flow Once seated, Wu asked about Old Liu's recent business performance. Old Liu poured out his grievances: "Business is tough these days. Supermarket fees are rising, and payment terms are getting longer. Every holiday brings some fee or another. Where's the profit? I'm just a loader, busy in and out. I'm getting tired of it. But I have a team relying on me, so I have to keep going. Take your company's products—you saw the market investment from competitors. Those supermarket chains only respect me, or else we'd have been kicked out long ago." Wu smiled and asked, "Mr. Liu, how do you think our products should be managed in Dalian? You're the veteran here; I'd like to hear your opinion." Old Liu said excitedly, "We've made many suggestions, but your company hasn't responded at all, and I've lost confidence. Last time I told Director Zhang, maybe you should find another distributor. I'm willing but unable." Wu said calmly, "That's not like you, Mr. Liu. We've worked together for nearly ten years; I know your capabilities. I'm here to hear your thoughts." Old Liu's eyes lit up and he said, "My idea is: the company must increase market investment in sales terminals to strongly counter competitors. D product has floor displays in X store; we should do bigger ones. D product has special prices; we should offer deeper discounts. Increase in-store promoters and strengthen the merchandising team. I've calculated: if your company invests 200,000, I guarantee 1 million in sales. Within three months, we'll push D product out of Dalian." Xiao Zhang interjected, "200,000 is too high; the company won't approve it." Old Liu was about to argue, but Wu quickly waved his hand and said, "Mr. Liu's plan is basically reasonable. He's thinking of our company." Old Liu, hearing this, added, "Exactly! I have feelings for your company. I've been with you since you entered Dalian. It was tough at first; we invested so much manpower and resources. Now it's like the emperor is not worried but the eunuchs are! If it were another company's product, I wouldn't bother." Wu handed Old Liu a cigarette and said slowly, "The company will definitely invest. The key is how to invest. Today we saw the market; many supermarkets are out of stock. If we can't even supply goods, how can we invest?" Old Liu said without hesitation, "We're already replenishing. The out-of-stock stores will be restocked within a day." Xiao Zhang interjected, "Your warehouse has little stock left. If you don't pay and ship soon, we'll run out." Wu, with a troubled look, said, "Mr. Liu, if Dalian runs out of stock, we can't invest even if we want to." Old Liu thought for a moment and said, "I've already sent the order to the company. I'll have finance make the payment now. Since you're here, Mr. Wu, I'll give you that face." He then called finance and instructed them to remit immediately. [Analysis] Before negotiating, you must know your most urgent problem and make solving it the primary condition. Then you can guide the situation. Don't mind the other party's complaints; the more they complain, the more they care about your product. A skilled negotiator notes:

  1. Let the other party say everything they want to say. The more they talk, the clearer their true intentions and weaknesses become.
  2. Don't argue over details during negotiation; it doesn't help solve problems. When there's a major disagreement, change the topic promptly.
  3. Solve urgent problems first, then handle the rest. Negotiation is a process from easy to difficult, from simple to complex. When the other party says what you want to hear, consensus is easier to reach. Negotiation Is Exchange Wu took a sip of water and said, "I came this time for two reasons: first, to learn from you about market experience. We want to make Dalian a model for the national market. Second, to discuss with you how to operate the Dalian market next. You know Dalian best. Besides the KA system, what other areas should we invest in?" Old Liu replied, "I've told you before: your product's sales channels in Dalian are too narrow. Sales are concentrated in a few major chains. You've neglected small and medium supermarkets and peripheral areas, and your distribution rate is too low." Wu countered, "Then why haven't you distributed there? Is it because you can't get in?" Old Liu answered, "Distributing to these small and medium stores requires costs. If you don't give me the budget, I'll lose money." Wu asked, "How much budget is needed?" Old Liu thought and said, "For each SKU, 200-300 yuan is needed. Without displays, products won't sell. To do well in B and C stores in Dalian, you need at least 30,000-50,000 yuan per month." Wu asked again, "How many B and C stores are you currently working with?" Old Liu said, "Over 4,000. We have dedicated sales staff and dedicated delivery vehicles. This segment accounts for more than half of our sales." Wu continued, "If I give you 10,000 yuan per month, can you get our products into 500 new stores each month? Complete distribution within two months, and for every 10 stores, set up one special display. Can you do that?" Old Liu paused and said, "500 stores a month is no problem, but 10,000 yuan is a bit low." Wu said, "Doing the market is a joint effort between the manufacturer and the distributor. If you rely entirely on the manufacturer, the budget will never be enough. When the market is done well, both sides benefit. This approach has no precedent in our company. Let's pilot it in Dalian. Mr. Liu, you should look further ahead. We should not only earn today's money but also tomorrow's." Old Liu agreed readily, "Alright. I'll assign this to my sales staff tomorrow." Wu turned to Xiao Zhang and said, "Xiao Zhang, assign someone to cooperate and track progress. Since Mr. Liu supports our work so much, you must provide good service." Xiao Zhang nodded: "Okay! I'll personally lead the tracking." [Analysis] The entire conversation was a series of questions and answers. It seemed plain, but both sides were in a subtle struggle. Wu's few words guided the negotiation's direction. The other party will always try to raise the stakes, and the negotiator must know their bottom line. Every concession must be met with a commitment from the other side. A skilled negotiator is not about eloquence but about steering the other's thinking in a favorable direction. Negotiation is not about winning or losing; it's about maximizing mutual benefits. Find common interests and build consensus; then the results are easier to turn into achievements. Let Facts Speak After a brief pause, Wu asked, "After D product launched in Dalian, has their market investment been large?" Old Liu replied, "D product has invested heavily recently. They've set up over 20 floor displays in X system, done mailers, and deployed over 10 in-store promoters. I estimate their monthly market investment is no less than 200,000." Old Liu's words were slightly exaggerated, but Wu knew the truth and didn't argue. He asked, "How are D product's sales?" Old Liu answered vaguely, "According to my sales staff, sales are quite good. Single-store daily sales are over 1,000. They've squeezed our products so much that we can't sell." Wu smiled and pulled out the daily sales details for D product in X system, saying, "Mr. Liu, you overestimate them. According to the sales details, D product's highest single-store daily sales in X system hasn't exceeded 600 yuan, averaging just over 300. Our products' average daily sales per store remain stable at around 500 yuan. This is all thanks to your excellent relationships in X system. On the other hand, it shows our products have established a loyal customer base in Dalian. In the near term, D product won't pose a threat to us." Old Liu argued, "But we can't let our guard down. D product is aggressive; if they grow, they'll become a major headache." Wu nodded and said, "You're right, Mr. Liu. We must take it seriously. But D product's monthly sales in Dalian are at most 200,000. After deducting entry fees and such, their monthly terminal maintenance costs are around 100,000. How long can such a high investment last? At most three months! I know D company's strength well." Old Liu nodded. Wu continued, "D product just launched, so they need to make moves to secure their position. But market competition is a long-term game, not about short-term gains. If we follow their displays and promotions now, we'd be fighting a big battle with small resources, and we'd lose. We should avoid their momentum, wait until their promotions stop, and then increase our promotional efforts. That would be more effective. What do you think, Mr. Liu?" Old Liu laughed heartily and said, "President Wu! You're truly a marketing expert. That makes sense." Wu felt the negotiation had achieved its intended purpose and it was time to wrap up. He said, "We'll stick to the market plan we've already set, doing solid foundational work. We'll fight a protracted war, not compete for short-term gains." Wu took a sip of water, turned to Xiao Zhang, and said, "Director Zhang, put today's agreed market plan in writing and have Mr. Liu confirm it. We'll execute according to that plan." As he spoke, Wu stood up, shook Old Liu's hand warmly, and said, "Thank you for your support, Mr. Liu. I won't disturb you further. Tonight, I'll host dinner and hope to learn more from you." Old Liu laughed and said, "What are you saying? In Dalian, it's my treat. Tonight, I'll welcome you, President Wu." [Analysis] The negotiating opponent will often exaggerate facts, intentionally or not. The negotiator needs strong evidence to refute them. This requires good preparation before the negotiation. Distributor Liu's trump card was sales volume. Distributors often use sales volume to blackmail for maximum benefit. Wu never brought up this topic, keeping Liu on the defensive. Summary The above negotiation process is common in sales management. As sales director, Wu Weigang remained calm and composed. He didn't blame the office director for shirking responsibility, nor did he argue details with the cunning distributor. Instead, he guided them into his way of thinking. When subordinates lack ability and handle problems simplistically, merely blaming them or giving them solutions often doesn't work well. Most frontline sales managers are somewhat arrogant and overemphasize external factors. The best approach is for senior managers to demonstrate personally, letting subordinates understand the entire problem-solving process and identify their own shortcomings. This builds the leader's authority and helps improve the overall quality of subordinates. Distributors' pursuit of maximum profit is not blameworthy. When distributors use various means to blackmail, salespeople must first hold their ground. Timely payment and ensuring market supply are the distributor's obligations, with no preconditions. Even if their conditions are reasonable, they cannot be used as preconditions for negotiation; otherwise, the distributor will use them as leverage long-term. A negotiator's grasp of the situation gives them a psychological advantage. Negotiation is often a tug-of-war with repeated back-and-forth. When both sides are deadlocked on an issue, set it aside temporarily. Start with simple issues. Make small concessions to gain larger ones from the other side. A skilled negotiator guides the situation so the other party says what you want to hear, turning your ideas into theirs. The result is then more easily accepted. Let the other party feel like a winner, gaining psychological satisfaction, while you quietly get what you want. That's the best win-win. Negotiation is a process of psychological change. Truth and falsehood mix. The negotiator must discern. A distributor's willingness to give up a product's distribution rights depends on whether it brings profit. G product still brings Old Liu substantial profit; his talk of giving up was just psychological pressure on Wu. Wu remained unmoved, stuck to his thinking, and achieved satisfactory results. Once you reach a satisfactory result, end the negotiation immediately before the other side recovers. Too much talk leads to mistakes and unnecessary complications. 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