Click 'Read Original' for details. Manufacturer sales staff often complain that distributors won't cooperate! Have you ever wondered why distributors don't cooperate? First, analyze the reasons for their non-cooperation. Every problem and conflict has a cause; let's try to analyze from the following two aspects: First, Look for Reasons Within Yourself A distributor with little strength would eagerly pursue well-known brands and hot-selling products—how could they not cooperate? This only indicates that the brand has little influence locally, sales are average, or during cooperation, the manufacturer has many shortcomings, with the fundamental reason being that the distributor can't make money. At this point, we must put ourselves in their shoes:
- Delayed payment of distributor fees, improper financial relationships between salespeople and distributors, etc., causing resentment.
- Poor handling of product quality issues, untimely delivery, empty promises from salespeople, excessive distributor inventory, and delayed promotional policies from the manufacturer, leading to dissatisfaction.
- Due to wrong approaches, multiple large-scale market promotions have no effect, the manufacturer lacks market support, and distributors lose confidence in the product.
- Regional managers act too high-profile, put on airs, look down on small distributors, hurt their self-esteem, and cause aversion. Identify Key Problems Within the Distributor
- Tight cash flow, unable to pay.
- Poor attitude, not valuing our products, representing multiple similar products, or being courted by competitors.
- Chaotic internal management, sporadic market work.
- Limited by business thinking, market breakthroughs are difficult, business is sluggish.
- Poor service awareness, poor channel network relationships and reputation.
- Taking chances by violating company rules, dumping goods to other markets at low prices, intercepting company funds, etc.
- Weak sales team, poor execution. Purpose and Methods of Distributor Management What is the purpose of manufacturer managing distributors? To make them obedient? Wrong! Managing distributors is just a means; sales and market are the goal! What is the distributor's business purpose—profit. What is the regional manager's work goal—performance. The art of a regional manager's work lies in unifying sales market, operational efficiency, and performance goals, unifying them in basic market work, unifying them in consumer awareness and purchase, and mobilizing various resources to conquer markets in competition. So we can also conclude that—the regional manager's work = helping distributors make money. As long as you help distributors make money, all management problems will be solved. Someone might retort, "My distributor makes hundreds of thousands or millions a year from our products, but they are very arrogant and basically don't respect me, let alone cooperate!" Then I can only ask: "What promotion and guidance have you provided for your distributor's operations and market management? Have you grasped the channels? Regional managers who rely only on smooth talk, relationships, putting on airs, and lack real talent, relying solely on company strength as backing, have no room to survive!" To take, you must first give. To make distributors cooperate, first meet their needs—making money. I. The execution level of grassroots sales staff determines the quality of market work; the key to market breakthroughs is building a passionate and combat-effective sales team. 1. Team Motivation: Gather distributors and salespeople to discuss current market development and internal management issues. Absorb salespeople's suggestions, affirm their achievements; increase their salaries and commissions, and I also decided to allocate some funds from market expenses as rewards for outstanding sales performance. Finally, I talked about the company's strong strength and the upcoming vigorous development of the local market, striving to become the local market's number one brand. After the meeting, the salespeople's "listless" state and lazy expressions vanished, and they were eager to try. Enthusiasm without goals is blind; goals without methods are dangerous. 2. Team Training: Provide training on product knowledge, product distribution skills, product display standards, and customer relationship maintenance. Sharpen the spear before battle—polish the "gun" first! 3. Leading by Example: After a day of training, the salespeople seemed half-understanding. I know there is a gap between "theory" and "practice," and "standards" and "examples" are the best ways to achieve "unity of knowledge and action." So I personally took several salespeople to distribute products, tidy up goods, adjust shelf displays, and do terminal beautification, negotiate with buyers, and told them that success cannot be copied, but successful experiences and methods need to be referenced. Everyone should summarize their own sales techniques based on the characteristics of the target, product selling points, and their own strengths. 4. Follow-up Guidance: For newly trained salespeople, it's hard to digest training content immediately, so follow-up guidance after training is crucial—correct mistakes, reinforce standards. 5. Practical Training: You can't grow towering trees in a greenhouse, nor can you cultivate excellent salespeople in three days. Sales is a highly practical job, and sales skills can only be improved through actual combat. II. Successful regional market development requires not only an excellent sales team but also scientific market strategy guidance and feasible promotion plans. 1. Segment Sales Channels: KA supermarkets, B-class chains, C/D-class convenience stores, restaurants, hotels and guesthouses, nightclubs, internet cafes, stations, newsstands, cold drinks, campus stores, wholesale markets, township second-tier distributors, township direct-supply supermarkets, rural small shops, etc. 2. Collect and Organize Terminal Information: Including customer data, consumer feedback, competitor information and promotions, current product status, consumption environment and trends, analyze competitive environment and landscape, etc. 3. Through market surveys and competitive analysis, Mr. L and I determined the following market breakthrough strategies: A. Target development of key supermarkets in township markets with lower competitive pressure, focus investment, create model stores, and attract strong township second-tier distributors. B. Quickly seize township markets, establish and improve township second-tier channels; in some townships, use the advantage of higher product profits than competitors and the low loyalty of second-tier distributors to poach competitors' customers and achieve deep distribution. C. Establish incentive sales systems to encourage second-tier distributors to quickly enter rural markets, forming a rural-encircling-cities sales pattern. D. In urban markets, fight hard battles with competitors in channels with low entry barriers, low investment, and high returns, such as stations, campuses, internet cafes, beverages, breakfast, and fast food. E. Select some C/D-class retail stores with good business and high sales to purchase special displays, make light boxes, store signs, etc., focus on creating community model stores, and gradually increase small store distribution rate and survival rate. Achieve cash-on-delivery, ensure shelf displays are superior to competitors, must post POP and other terminal promotional tools; must visit according to routes and cycles, provide good service, and maintain customer relationships. F. Temporarily postpone investment in KA and hotel channels, put eggs in one basket; after achieving staged victories in other channels, with expense support and a stronger sales team, then compete with competitors in KA. Reflections on Distributor Management
- Reviewing my distributor management experience, doing well in distributor management is just one sentence—attitude determines everything, thinking determines the way out, and details determine success or failure. That is, use corporate culture to arm distributors' thinking, correct their attitudes, assist them in market planning and streamline work thinking, help them improve management, train their sales teams, use sales profits and policies to motivate them to actively do market work, supervise their implementation of company market policies and promotion plans, and use company market management regulations to manage and constrain them. For distributors, an excellent regional manager is both a strategist and a teacher!
- To do well in distributor management, don't keep the word "management" on your lips! Often, distributors' social experience, age, personal achievements, etc., far exceed ours, and they care about face! In such cases, we can change the wording: "communication," "cooperation," "win-win."
- A reminder to all regional managers: Don't just measure distributors by payment collection; first reflect on whether your work is done well. If market work is done well, payment will come to you; if not, you have to chase payment!
- Don't always stare at the "little money" in distributors' pockets; look further—distributors, second-tier distributors, terminal customers. Only when consumers are willing to pay at the terminal can your payment collection be guaranteed! **5. Do well in the "Three Represents" and "One Unification": ** Represent company interests, complete sales tasks and market indicators assigned by the company; represent distributor interests, help them make money; represent your own and salespeople's interests, exceed sales performance, and let salespeople make money. Unify the interests and resources of all three parties into specific market work.
- The company is the "Party," the regional manager is the "Party representative," distributors are the "masses," and market competition is the "revolutionary struggle." To win the "revolutionary struggle" and achieve "communism," we must "come from the masses, go to the masses," "represent the fundamental interests of the broadest masses," and let the "masses" live a good life! Source: Distributor Special Issue -END-
