---
title: "New Products Aren't Hard to Sell—It's the Selling Approach That's Wrong!"
description: "Starting from the demand itself, every demand is backed by spending. In the future, distributor costs will rise: logistics, warehousing, sales staff compensation, and terminal profit requirements. Without high-price positioning, profit margins will be insufficient. Market capacity is limited, and thin-margin, high-volume sales no longer fit this competitive market. Price isn't the decisive factor in product success; consumer psychology now favors higher-priced items, like milk, where 5-6 yuan premium products sell better than 2-3 yuan ones."
author: "李锋"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-10-23"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/new-products-aren-t-hard-to-sellit-s-the-selling-approach-that-s-wrong-fb2dc326.md"
original_source: "https://mp.weixin.qq.com/s/tFvr4F0FuL3DeImIn4euEA"
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---

# New Products Aren't Hard to Sell—It's the Selling Approach That's Wrong!

> Starting from the demand itself, every demand is backed by spending. In the future, distributor costs will rise: logistics, warehousing, sales staff compensation, and terminal profit requirements. Without high-price positioning, profit margins will be insufficient. Market capacity is limited, and thin-margin, high-volume sales no longer fit this competitive market. Price isn't the decisive factor in product success; consumer psychology now favors higher-priced items, like milk, where 5-6 yuan premium products sell better than 2-3 yuan ones.

Starting from the demand itself, every demand is backed by spending. **In the future, distributor costs will rise: logistics and delivery, warehousing, sales staff compensation, and terminal profit requirements.**
Without high-price positioning, profit margins are actually insufficient. Market capacity is limited, and thin-margin, high-volume sales no longer suit this fiercely competitive market.
Product success isn't determined by price. Consumer psychology is shifting; they now perceive higher-priced items as better. For example, milk: previously 2-3 yuan was popular, but now 5-6 yuan premium milk sells better.
On the other hand, low prices can trap distributors in a dead end. Originally, soy sauce at 3 yuan per bottle sold well, but when a 2.8 yuan bottle appeared, sales plummeted. Low prices have no floor, eventually eroding all profit—how can you compete? **Besides high pricing, use different prices for different channels, promote across multiple channels, and leverage price advantages to develop special and group-buying channels.** For instance, a group-buying client needed 5,000 barrels of oil for employee benefits. I recommended the new product, and those 5,000 barrels reached 5,000 households. Consumers liked the oil and repurchased; even a 10% repurchase rate generates significant sales.

**-02-**
**Promotions Aren't Discounts!**
For small stores, new product promotion is a risky purchase decision, but under the lure of promotional policies, they often proactively promote new items. Thus, promotional policies are crucial for product placement, especially for new launches.
**Emphasize: promotional policies are not discounts; distributors must avoid easy discounts, as discount promotions harm the price system most.** Once discounts occur, it creates distorted price perceptions among stores and consumers—no discount, no purchase—leading to a vicious cycle.
Promotional policies should provide satisfaction to terminals and consumers without harming the new product's price, making them willing to pay for the new item.

**First, give gifts. Bundle gifts with the product to let consumers feel they're getting a deal; 80% of consumers have this mindset.** High-price systems shouldn't resort to direct specials; maintain the product's value perception.
Give terminals best-selling gifts. For example, with a new milk launch, use a 10+1 strategy where the free item is a best-seller, not the new product. This highlights the new product's value and attracts terminals to sell it.

**Second, invest in process metrics. Don't over-gift new products; save that cost for process metrics, which yield better results.** For beverages, reward 3 yuan per case sold, 200 yuan per shelf per month, 50 yuan per quality display per month, etc.

**Third, incentivize customers with time-bound sell-through rewards.** For instance, if a customer stocks 15 cases and after half a month only 1 case sells, communicate: from the 15th to the 25th, offer an extra 5 yuan per case.

**Fourth, offer rebates and development rewards for customers with resources.** For the foodservice channel, find 10 wholesalers from the wholesale market, each with 40 restaurant contacts. Sign rebate agreements: for monthly cumulative sales of 20 cases, reward 2 yuan per case; 30 cases, 3 yuan; 40 cases, 4 yuan; 50 cases, 50 yuan (maximum).
**The only principle: don't easily discount, and don't over-gift.**

**-03-**
**Without After-Sales, Who Would Sell New Products?**
**For new products, small stores have two concerns: profitability and after-sales—can they return goods, and will you take responsibility?** High pricing addresses profitability; after-sales becomes the primary concern.
Most after-sales issues aren't the distributor's intention but stem from sales staff. Many salespeople, after placing new products, collect their placement bonuses and ignore the store's fate. If customers can't sell after months and request returns, delays drag on, and eventually no return is processed, forcing stores to sell at low prices.
In such cases, customers won't promote new products again. **Distributors must establish robust after-sales service, from product placement to sale, always supporting the store's business.**
When placing products, use reverse thinking: minimize initial quantities to show you care and are responsible. Estimate a store's weekly sales; if it can sell 20 cases weekly, deliver only 20 cases, telling the owner to reorder anytime with next-day delivery.
**After placement, establish a standard return policy: within three months, exchange goods for non-moving or slow-moving stores to ensure fresh dates, reassuring owners and eliminating worries.**
A survey once found a regional distributor's sales declined sharply for two consecutive years. A week-long investigation revealed the root cause: the manufacturer demanded high targets, the distributor mismanaged, leading salespeople to force stock, resulting in products with dates over one-third expired, unsellable, creating a vicious cycle.
**Such a policy gives customers peace of mind: new products can be returned unconditionally if unsold. Customer trust makes new product promotion twice as effective.** If verbal promises are doubted, sign a return agreement guaranteeing unconditional exchange within three months. In practice, after signing, actual returns are rare. Selected stores are target stores capable of selling new products, and owners are confident in promotion.
Additionally, help small stores secure resources, organize off-site sales events, and build customer confidence. Especially for overstocked customers, organize staff for tent sales to drive sales and clear inventory. Being responsible and providing good service is crucial.

**In the first three months of new product promotion, hold monthly review meetings to summarize experiences, share success stories, and identify issues through data analysis.**

**In Conclusion:**
**Knowing is easier than doing; execution is key. Distributors must check: if systems are in place but not executed, it's zero.** Leaders should regularly visit the front line, conduct research, and supervise new product promotion execution.


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