---
title: "Overcoming the Four 'Inner Demons' of Distributors"
description: "Distributors often fail to deliver orders, promote new products half-heartedly, ignore profitable channel promotions, and refuse to execute fully subsidized terminal promotions. This article analyzes the psychological roots behind these behaviors and provides practical strategies for sales representatives to help distributors overcome their fears, resistance, greed, and arrogance."
author: "张立强"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-06-04"
language: "en"
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---

# Overcoming the Four 'Inner Demons' of Distributors

> Distributors often fail to deliver orders, promote new products half-heartedly, ignore profitable channel promotions, and refuse to execute fully subsidized terminal promotions. This article analyzes the psychological roots behind these behaviors and provides practical strategies for sales representatives to help distributors overcome their fears, resistance, greed, and arrogance.

After working hard to secure orders from sub-distributors or retail terminals, the distributor doesn't deliver; a clearly competitive new product is promoted half-heartedly; a highly profitable channel promotion policy is not followed up; a fully subsidized terminal promotion is not executed; a joint communication that would enhance both parties' visibility is not cooperated with... How can these customers, who usually calculate their accounts more precisely than pi, suddenly fail to see reason and watch money slip away? The reasons, besides objective factors such as regional market differences and product demand variations, include the channel partners' fixed mindsets formed over years of business activities and the sales habits developed during extensive, rough-and-tumble growth, which hinder their own development and that of the manufacturers. How should sales representatives help distributors overcome these bad sales habits and change their fixed ways of thinking, conquering their inner demons?

1. Set Standards, Conquer the Demon of Fear
Market Manifestation 1: "A prominent pig gets slaughtered."
This type of distributor is not afraid of fame but fears making the market too strong, developing the product too deeply and thoroughly, lest the manufacturer later switch to direct operations or terminate the partnership, making all their efforts in vain. Thus, they ignore the manufacturer's call for intensive cultivation, preferring extensive farming with low yields, scattering products across the designated area and taking on new brands once the area is saturated. They have a little volume with each brand, but none significant. Every year, they get dropped by two manufacturers, and every year they find two new brands. After all, China's market is vast with many brands, so there's no shortage of products to handle.
Market Manifestation 2: "Don't put all eggs in one basket."
This type of distributor is more sophisticated than the previous one. The first type goes with the flow and refuses to work hard on the market, while this type demonstrates a high level of control. Their network strength and market operation skills far surpass the first type. They typically handle first-tier brands with substantial sales volumes. To avoid over-dependence on any single manufacturer, they deliberately create a delicate balance among manufacturers, walking a tightrope. Like the Chinese government during the Cold War, they display superb political and diplomatic skills, leaning whichever way the wind blows. If one side becomes too strong, they ally with the weaker side to counter the stronger. Although they are the weakest, they reap the greatest benefits from the conflict between the two.
[Case Study]
While serving Taiwan's Uni-President, I encountered such a distributor. Mr. L was just an agent in H City, North China, with annual sales ranking at the bottom of the province. Yet he managed to secure favorable policies and rebates comparable to those of provincial capital agents. The reason was that he also handled Master Kong, Uni-President's biggest competitor.
He made solemn promises to both manufacturers' sales managers, claiming that handling both was temporary, that he was inclined toward their company, and that he handled the competitor only to gather information and prevent vicious competition that would harm both parties. Through his clever manipulation, the gap between the two brands in H City was the smallest in the province, and competition was the fiercest, almost white-hot. Whenever one side made a move in the market, Mr. L would promptly tip off the other side, prompting a counter-move. Thus, Mr. L had the opportunity to profit from the conflict. The more they fought, the more secure his position became with the manufacturers, and the more resources they invested. Mr. L's profits grew, and his distribution network became stronger (since his products had frequent promotions, terminal loyalty was high).
Psychological Root: They view cooperation with manufacturers purely as mutual exploitation: you use my network for sales, I use your products to make money. They firmly believe that "the manufacturer dominates the distributor when large, and the distributor dominates the manufacturer when large."
Subduing the Demon:
1) When signing sales contracts with channel partners, do not only assess sales results; focus on process assessment. Clearly specify requirements for the number and quality of outlets in the contract, and assess in stages. If problems arise during cooperation, there is still room for remedy.
2) Establish a strategic alliance with channel partners, not just a pure buying-selling relationship. Gree Air Conditioning's joint sales companies, Wahaha's distributor consortium, and Firs' franchise store system are examples that manufacturers can learn from.
3) Establish a "non-compete" system in marketing; absolutely do not cooperate with competitors' channel partners. The market is vast; there are surely more than just two or three channel partners. Do not covet the sales and network of competitors' channel partners; those sales and networks are not yours. To get a share, you must pay a price, which often outweighs the benefits. It's better to marry a commoner and work hard to become wealthy than to be a humiliated "second wife" in a wealthy family.

2. Training and Communication, Dissolve the Demon of Resistance
Market Manifestation:
This type of channel partner firmly believes: "What the enemy supports, we oppose; what the enemy opposes, we support." When asking for resources from the manufacturer, they demand exorbitant prices; for any market requirements from the manufacturer, they bargain hard. They treasure their customer network and resolutely prevent the manufacturer's sales representatives from touching it. They try to win over or corrupt the manufacturer's sales reps; if they can't, they try to marginalize them. They pass on resources from the manufacturer to sub-distributors and terminals in their own name to strengthen control over the network. They cultivate loyal clients and suppress those who are innovative, have ideas, and communicate directly with the manufacturer. They implement the manufacturer's policies with discounts or passively.
Psychological Root: They believe that a fat pig is destined for slaughter, and that if sales become too large, the manufacturer will take over direct operations. They harbor an inexplicable hostility toward the manufacturer and have a serious game-theory complex.
Subduing the Demon:
1) This mindset is directly related to poor communication with the manufacturer. Conduct corporate philosophy and market strategy training for channel partners to help them understand the manufacturer's long-term direction, thereby eliminating unnecessary misunderstandings.
2) Through active and rigorous market operations, make channel partners understand that the manufacturer is not solely pursuing sales volume but focuses on achieving a "win-win" with channel partners.

3. Monitor and Assess, Eliminate the Demon of Greed
Market Manifestation: They boast recklessly in front of the manufacturer; sign any task, no matter how big; demand any territory, no matter how large; with just 100,000 to 800,000, they dare to ask for provincial agency. They pursue exorbitant profits on single products, selling at any price; intercept manufacturer policies; resell promotional gifts; and deduct wages of in-store promoters.
Psychological Root: Having been in business for years, they regard "all merchants are cunning" as the highest principle of business. They think: "Grab what you can; cheat as many as you can!"
Subduing the Demon:
1) Through analysis of market conditions and industry prospects, guide channel partners to adopt a mindset of seeking profits from sales volume.
2) Break down market indicators in the sales contract and assess them according to a timeline. Once it is discovered that the channel partner cannot fulfill corresponding market responsibilities, immediately reduce their distribution area and activate backup customers.
3) The manufacturer's personnel should comprehensively monitor the market and establish a transparent and unified price system.
4) Policies should be communicated directly to terminals by the manufacturer's personnel and output uniformly in the manufacturer's name.
5) The manufacturer's personnel should directly control in-store promoters, with gifts managed by promoters and linked to sales commission assessments.

4. Control the Market, Overcome the Demon of Arrogance
Market Manifestation: This type of channel partner is usually strong locally and considered "someone with skills." They firmly believe: "My territory, my rules. No matter how strong your brand is, without my nod, you can't succeed in this market." They are empirical: "When I was in business, you were still in school." They think: "I know this market best; your methods won't work here."
Psychological Root: Years of business activities have formed their own set of rules; past successes have made them ignore market changes and development, indulging in past experiences.
Subduing the Demon:
1) To deal with the strong, be stronger; to deal with the professional, be more professional. The manufacturer's sales reps should improve their market operation skills through deep market immersion and practice, presenting themselves as market operation experts. To make a master bow, you must let them know you are the master of masters.
2) Fully utilize your resources and advantages to make channel partners understand through market operations that only by cooperating with the manufacturer can they earn substantial profits; only by following the manufacturer's advice can they avoid losses.
3) Go deep into the market, understand it, and control it. The reason channel partners dare to challenge the manufacturer is their network. Once you fully grasp their customer network, even better than they do, they naturally lose their bargaining chip. When the sales rep brings a thick notebook to communicate with the channel partner, listing how many customers are loyal, how many are price-driven speculators, how many are risky customers who like to dump goods or disrupt prices, and telling the channel partner how many loyal customers didn't order this month, whether due to dissatisfaction or competitor actions, and how to respond—even the most arrogant channel partner will break into a cold sweat and listen attentively.

In today's Chinese market, channel partners still play a significant role in marketing activities. To effectively manage channels, their cooperation is crucial. A marketing veteran once said: "Sales work is essentially about dealing with people. Once you win people over, sales naturally follow." By grasping their psychology and overcoming their inner demons, you can lead them to expand the market under your direction.

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