---
title: "Nine Common Mistakes Manufacturers Make in Managing Distributors"
description: "This compilation of distributor management issues is from the perspective of the manufacturer's headquarters, not the sales staff. It requires the manufacturer's boss to think about and address, not just the salespeople. Although there are industry differences and many variations among manufacturers, there are still many common issues in distributor management, such as: 1. Insisting on not finding reasons within oneself; 2. Insufficient understanding of distributors; 3. Insisting on using the manufacturer's values and thinking patterns; 4. Trying to directly reform distributors; 5. Ignoring the actual executors; 6. Single profit model; 7. Homogenized management methods; 8. Not paying attention to changes in distributor needs; 9. Relying solely on the personal energy and professional ability of sales staff."
author: "潘文富"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-10-16"
language: "en"
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# Nine Common Mistakes Manufacturers Make in Managing Distributors

> This compilation of distributor management issues is from the perspective of the manufacturer's headquarters, not the sales staff. It requires the manufacturer's boss to think about and address, not just the salespeople. Although there are industry differences and many variations among manufacturers, there are still many common issues in distributor management, such as: 1. Insisting on not finding reasons within oneself; 2. Insufficient understanding of distributors; 3. Insisting on using the manufacturer's values and thinking patterns; 4. Trying to directly reform distributors; 5. Ignoring the actual executors; 6. Single profit model; 7. Homogenized management methods; 8. Not paying attention to changes in distributor needs; 9. Relying solely on the personal energy and professional ability of sales staff.

This compilation of distributor management issues is from the perspective of the manufacturer's headquarters, not the sales staff. That is to say, it requires the manufacturer's boss to think about and address, not just the salespeople. Although there are industry differences and many variations among manufacturers, there are still many common issues in distributor management, such as:
**1. Insisting on not finding reasons within oneself**
The commonality rate is almost 100%. When distributors are difficult to manage, manufacturers almost unanimously blame the distributors, complain about the market environment, or talk about competitors. They almost never look for reasons within themselves. Sometimes, it is even led by the manufacturer's sales head, or even the boss, emphasizing finding reasons externally and in others, insisting on their own infallibility. Since the top management leads by example, the sales staff below are even more so.
**2. Insufficient understanding of distributors**
To see how well a manufacturer understands its distributors, just look at the distributor files. If the number of file categories is less than thirty, it can basically be judged that the understanding is too shallow. Without sufficient in-depth understanding, it is impossible to grasp the real situation and characteristics of distributors, and thus it is impossible to ensure that the distributor policies are targeted. If targeting cannot be guaranteed, then the effect cannot be guaranteed either.
**3. Insisting on using the manufacturer's values and thinking patterns**
Manufacturers are enterprises that emphasize development and progress, focusing on strategic planning and the overall situation. Distributors are essentially individual businesses that prefer quick and short-term gains, with preserving current income as the primary prerequisite. There is no right or wrong here, but there are huge differences. If manufacturers ignore the reality of these differences, only consider their own unilateral perspective, and do not consider the distributors' values and thinking patterns, both sides will continuously have disputes and conflicts.
**4. Trying to directly reform distributors**
Strictly speaking, the process of commercial activities is the process of reforming the other party. Consumers' shopping orientations are constantly being reformed by manufacturers. For distributors, manufacturers naturally also want to reform them, hoping to achieve "manufacturer-distributor value integration" as soon as possible. Thus, various brainwashing courses, model promotions, personal testimonials, and even arranging for some distributors to shout "Long live" in public frequently appear. If such efforts could achieve the reform of people, then the manufacturer could organize a million-strong army and go do something bigger...
People can be reformed, but it is a slow process. Direct reform, or even trying to change through a brainwashing training course, is almost impossible. Unless in extreme coercive environments, such as locking distributors up and not giving them food for three days...
**5. Ignoring the actual executors**
The distributor boss is only responsible for purchasing goods; the distributor's salespeople are the ones who sell the goods. Various management measures or business policies of the manufacturer only act on the distributor boss, at most solving the problem of purchasing goods. But the goods still need to be sold after being purchased. Selling is concentrated on the distributor's salespeople. So, does the manufacturer have targeted measures for the distributor's salespeople? In the channel profit distribution mechanism, have the distributor's salespeople been considered?
**6. Single profit model**
Up to now, many manufacturers still believe that they bring products to distributors, and distributors can make money by selling the products. The more they sell, the more they earn. Some manufacturers even position their products as money-making machines. As long as distributors receive the distribution rights, they get a money-making machine. Therefore, distributors only need to listen to the manufacturer and sell the products well. But besides products, can manufacturers bring other forms of benefits to distributors?
**7. Homogenized management methods with other manufacturers**
Perhaps the manufacturer's own distributor management system does not have obvious errors, but the distributor management systems of many manufacturers are generally similar, basically changing the form but not the content. This homogenization of management systems will inevitably lead to homogenized management results, and it is easily countered and exploited by distributors.
**8. Not paying attention to changes in distributor needs**
Needs determine value. Only by grasping the needs of distributors can manufacturers design targeted cooperation systems. But the problem is that distributor needs themselves are changing. Early distributors only needed products; later they developed needs for brand influence, manufacturer investment and support; now there is a need for operational and management technology introduction. So, as a manufacturer, have you paid attention to the diversification and new changes in distributor needs? Including how to connect with these needs?
**9. Relying solely on the personal energy and professional ability of sales staff**
Specific distributor management work is naturally handled and executed by the manufacturer's sales staff in each market. Some manufacturer executives believe that since the sales staff are responsible for distributor management, any problems in distributor management should be solved by the sales staff themselves. However, the personal professional ability and energy of the manufacturer's sales staff are limited. From the perspective of personal work ability, very few manufacturer sales staff can handle distributors alone without headquarters support. Or, if they have such technical level, they would probably become their own boss.
Strictly speaking, the various distributor management problems commonly mentioned today are no longer problems, but results! They have already been made into this state. Moreover, these situations probably appeared three to five years ago, and have been dragged on until now. There has been no in-depth research on the root causes, nor systematic solutions designed. Most are just treating the symptoms, delaying and covering up. Do we still have to wait? If the manufacturer's sales staff or sales department heads have been delaying, that's one thing, but as the manufacturer's boss, do you also want to delay?
**Pan Wenfu:** Born as a private business owner, he managed a family distributor company for over ten years, and also served as sales manager, marketing manager, and trainer in several well-known production enterprises. He has a dual perspective and experience as both a distributor owner and a manufacturer's distributor manager. His research fields mainly focus on internal management optimization of distributor companies, corporate transformation, innovative business strategies, operating cost savings, and optimization of manufacturer-distributor relationships. He has the largest distributor research database in the country, maintaining long-term material collection and solution research on more than 400 topics related to distributor companies.
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