---
title: "How to Increase Regional Sales by Increasing the Number of Effective Outlets"
description: "Competitive pressure, rising operating costs, and the entry of new distributors constantly put distributors at risk of market fragmentation. The only way to resolve this is to increase regional sales, but as competition intensifies, traditional methods seem to fail. The formula for regional sales is: Regional Sales = Number of Outlets × Purchase Volume per Order × Purchase Frequency per Time. Thus, there are two ways to boost sales: having more effective outlets to quickly increase sales, or making each outlet sell more."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-03-28"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/how-to-increase-regional-sales-by-increasing-the-number-of-effective-out-069ba4e2/"
markdown: "https://xinjignxiao.com/en/articles/how-to-increase-regional-sales-by-increasing-the-number-of-effective-out-069ba4e2.md"
original_source: "https://mp.weixin.qq.com/s/C9KjbsQU4AOneu-cqUCPNQ"
translation: "https://xinjignxiao.com/zh/articles/%E5%A6%82%E4%BD%95%E9%80%9A%E8%BF%87%E6%8F%90%E5%8D%87%E6%9C%89%E6%95%88%E7%BB%88%E7%AB%AF%E6%95%B0%E9%87%8F%E6%8F%90%E5%8D%87%E5%8C%BA%E5%9F%9F%E9%94%80%E9%87%8F-069ba4e2.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/how-to-increase-regional-sales-by-increasing-the-number-of-effective-out-069ba4e2/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# How to Increase Regional Sales by Increasing the Number of Effective Outlets

> Competitive pressure, rising operating costs, and the entry of new distributors constantly put distributors at risk of market fragmentation. The only way to resolve this is to increase regional sales, but as competition intensifies, traditional methods seem to fail. The formula for regional sales is: Regional Sales = Number of Outlets × Purchase Volume per Order × Purchase Frequency per Time. Thus, there are two ways to boost sales: having more effective outlets to quickly increase sales, or making each outlet sell more.

Competitive pressure, rising operating costs, and the entry of new distributors constantly put distributors at risk of market fragmentation. The only way to resolve this is to increase regional sales, but as competition intensifies, traditional market methods seem to have failed. So what should distributors do?
Generally, the formula for regional market sales is: Regional Sales = Number of Outlets × Purchase Volume per Order × Purchase Frequency per 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 generate profits; whoever controls them has the advantage of sustained profitability. Poor-quality outlets create losses; whoever is pushed to them will exit the market.
**Retail Outlets ≠ Effective Outlets**
With the trend of channel下沉 in the food industry, many trading companies have begun to directly control outlets to enhance market control. Typically, a trading company directly controls anywhere from dozens to over a thousand outlets. However, for a specific product, not all outlets are effective.
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) exceeds the investment in development and maintenance; this is a profit-oriented outlet. Second, it significantly helps display products, promote the brand, and enhance the corporate image; this is an advertising outlet. Third, it is suitable for various promotional activities; this is a promotion-oriented outlet. Fourth, it can block competitive brands; this is a competitive outlet.
Typically, a retail outlet does not have just one function, but its primary role may differ.
**How to Have More Effective Outlets?**
To increase regional sales, distributors should focus on the number of effective outlets rather than blindly opening new ones, which would strain 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 find that existing distributors often classify terminal customers by sales scale, such as A, B, C classes. This single-standard classification fails to provide in-depth understanding of terminal customers, and high-quality outlets cannot be defined solely by sales volume. Here, I think 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 mindshare control, such as actively recommending the company's products to terminal customers.
**Cultivate Potential Outlets.** After a period of market operation, each outlet's sales often stabilize. At this point, regional growth relies more on newly developed effective outlets, i.e., potential outlets. How to judge a terminal'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 municipal construction adjustments, a terminal with limited foot traffic may see increased customer flow; such terminals should be promptly included as high-quality customers for deeper cooperation.
**Solve Problem Outlets.** Some outlets fail to increase sales due to various issues. If distributors solve these problems, it is equivalent to increasing sales on the existing base. Common terminal problems can be categorized as relationship-type, credibility-type, quality-type, etc. Therefore, distributors should quickly sort out and summarize existing problem outlets and design corresponding solutions for different issues.
**Eliminate Poor-Quality Outlets.** These include conflict-type and slow-moving-type outlets. Not only do they fail to increase sales, but they also waste the distributor's energy and resources. Therefore, such outlets should be firmly "cut off," and the company's efforts 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 blank market space, and filling a blank market means further improvement in regional sales.
**How to Make Effective Outlets Sell More?**
As mentioned at the beginning, increasing regional sales requires both the number of outlets and the sales per point. After introducing methods to increase the number of high-quality outlets, we should consider how to make effective outlets sell more. First, we need to clarify the factors affecting single-point sales.
Based on the analysis of factors affecting single-point sales, I believe the key to increasing single-point sales is to do a good job in retail terminal maintenance, promotion, and publicity, and maintain the efficient operation of the distribution network. Specific measures include the following:
 _★ Maintain terminal market order_
 _★ Maintain reasonable price differences_
 _★ Conduct appropriate promotional activities_
 _★ Terminal visualization services_
 _★ Provide value-added terminal services_
 _★ Maintain good terminal relationships_
********-END-********
The best FMCG distributor learning platform in China
Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors
Committed to helping Chinese FMCG distributors grow rapidly
**The most professional and practical knowledge base in the FMCG industry**
Reply with the red number below to get corresponding content
Reply with number 1 to view the complete knowledge base
| **001** Excellent Article Selection | **002** Distributor Market Operations | **003** Terminal Visit Management | **004** Sales Supervisor Skills | **005** Sales Improvement Techniques | **006** Channel Expansion | **007** Managing Distributors | **008** Distributor Development | **009** Distributor Internal Operations Management | **010** Team Management | **011** Efficient Distribution Techniques | **012** Sales Manager's Skills | **013** KA Operation Methods and Strategies | **014** First Lesson for New Salespeople | **015** Internet, Brands |
[Long press QR code to follow]
**To join QQ/WeChat groups, click: Read Original**


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671