---
title: "Post-90s Distributor Achieves 40-Fold Sales Growth in 6 Years, Annual Sales of 80 Million in County Market!"
description: "Distribution is essentially a selling business with a relatively simple model, yet many distributors struggle. This article explores how a post-90s distributor, Jia Yongshun, achieved 40-fold sales growth in six years by focusing on internal organization management, including refined KPI assessments and channel cultivation."
author: "周群"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-07-22"
language: "en"
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# Post-90s Distributor Achieves 40-Fold Sales Growth in 6 Years, Annual Sales of 80 Million in County Market!

> Distribution is essentially a selling business with a relatively simple model, yet many distributors struggle. This article explores how a post-90s distributor, Jia Yongshun, achieved 40-fold sales growth in six years by focusing on internal organization management, including refined KPI assessments and channel cultivation.

**Click to read the original text for details**
**Distribution is essentially a selling business, with a relatively simple business model. But why do many distributors still perform poorly in such a simple business?** Some may say the market is bad, squeezed by online competition, leaving less room to survive; or that terminals are increasingly indifferent to relationships, buying from whoever offers the lowest price... Indeed, that sounds reasonable, but distributors may not have noticed that the harder the market environment, the more some distributors manage to buck the trend and grow their business. What's the reason? **Many distributors, in their pursuit of growth, focus all their energy on external expansion while neglecting internal organizational management. The result is that the business grows, but they fail to make money.** Recently, New Distribution interviewed Mr. Jia Yongshun, General Manager of Xuzhou Jintong Food Trading Co., Ltd. (hereinafter referred to as Jintong Food). He entered the industry in 2014, starting as a complete novice, and has since represented over a dozen brands including Haitian, Niulanshan, Laohenghe, Want Want, Xiangmanyuan, Daliyuan, Red Bull, and Master Kong, achieving annual sales of 80 million as a county-level major distributor.
In six years, sales grew 40-fold. How did he manage internal organization? We hope his experience can offer some inspiration to distributors who are "headache" over this issue. **-01- Achieved 40-fold sales growth in just 6 years!** As a post-90s, Jia Yongshun studied cooking for three years and worked in Beijing, never expecting to enter the distribution business. After two years of working away, he returned to his hometown and ran a supermarket. At that time, his parents were also in small wholesale business. In 2014, the area where the supermarket was located faced demolition, so Jia Yongshun took over the distribution business from his parents. It was barely a business with just a tricycle, distributing canned Tsingtao Beer in a small area, with fewer than 200 outlets and annual sales of one to two million. That was the situation when Jia Yongshun took over.
Initially entering the industry, Jia Yongshun knew nothing about distribution. Therefore, he proactively started learning, attending many distribution courses and visiting many excellent distributor examples. It was during this learning process that he increasingly realized the necessity of digitalization; future distributors would be driven by data, not by people. So, in the second year after the trading company was formally established, he partnered with Zhoupu Data to introduce digital tools. The results were evident, with a significant increase in overall operational efficiency. **First, personnel were freed up, and finance had more time for data analysis.** Before using digital tools, finance took 7-10 days just to calculate wages, with all time spent on reviewing orders. After using the system, all employee wages were automatically calculated in the background, and all data on order creation, review, and promotions were clear at a glance. **Second, salespeople visited according to systematic route patterns, and drivers delivered according to systematic route patterns.** Previously, salespeople might make duplicate visits or miss some stores. Drivers had low delivery efficiency, going from one place to another randomly. After using digital tools, salespeople just followed the navigation one by one, automatically sorted by distance to the stores, and drivers did the same, directly following the navigation.
After a period of exploration and learning, Jia Yongshun gained a deeper understanding of the distribution business, and the trading company got on track, developing better and better. In just 6 years, Jintong Food grew from a single tricycle to a team of over 60 people, 20 vehicles, and a 5,000-square-meter three-dimensional high-bay warehouse, with projected sales of over 80 million in 2020, a more than 40-fold increase. Jia Yongshun told New Distribution that while growing rapidly, Jintong Food is also continuously improving organizational management: first, refined salary assessment to maximize employee efficiency; second, setting company development direction and doing channel cultivation well. **-02- Refined KPI Assessment to Let Employees Know What They Should Do!** Given his past experience, Jia Yongshun didn't have much experience in managing a trading business, but Jintong Food's KPI assessment is very professional, even more refined than some manufacturers' management. Jia Yongshun told New Distribution that he believes the most valuable quality of a boss is continuous reflection; when problems arise, solve them. Since he didn't understand management, he should learn. The essence of distribution management is similar; every manufacturer has ways to manage distributors. If manufacturers can motivate me through assessment methods, giving me momentum, why can't I use the same approach to motivate employees? Let employees work harder. Through this way of thinking, Jia Yongshun adopted the KSF assessment method (Key Success Factors), first determining company needs, then designing a unique compensation structure that allows the company to grow rapidly while keeping salespeople satisfied. Jintong Food's compensation structure is: **20% sales reward + 40% gross profit share + 20% item achievement + 10% sales forecast reward + 10% attendance.** First, the sales reward and gross profit share are actually tied together. The sales reward is different from sales commission; it sets a basic sales task, and rewards are given after achieving it. For example, if a salesperson's sales target is 100,000, the sales achievement reward is 2,000. If not achieved, for every 100 yuan short of the target, the reward is reduced by 10 yuan. If achieved, the salesperson not only gets the reward but also receives 30% of the gross profit on the portion exceeding the target. For instance, if sales reach 150,000, the excess over the target is 50,000, and 30% of the gross profit on that 50,000 belongs to the salesperson. It's important to note that expenses incurred from sales are deducted from gross profit, so the gross profit formula is: sales - product cost - policy expenses. Under this incentive, salespeople's mindset changes; they are more willing to see themselves as mini-bosses, proactively thinking, and since income includes policy expenses, they won't use resources excessively, preferring service solutions over policy ones. As for the item achievement reward, it assesses process indicators, mainly evaluating salespeople's promotion of high-profit products. For example, for new product distribution, completing the development of 100 outlets and meeting distribution requirements results in a high reward. **Item achievement and gross profit share complement each other; salespeople aiming for higher wages will proactively sell new and high-profit products.** For example, Master Kong instant noodles have bestsellers and new products; bestsellers are not included in the salary assessment, giving salespeople 0.1 yuan per box. Therefore, when selling bestsellers, salespeople will definitely bring new products, focusing their energy on them. Through this method, Jia Yongshun achieved an average gross profit of 10-12 points for Master Kong instant noodles. **The sales forecast reward is determined by the salesperson; they visit routes, each route three times a month, and based on sales targets, they estimate the tasks to complete for each visit. If they complete the forecast plan, they get the reward.** For example, if the sales task is 300,000, they might forecast 80,000 for the first visit, 120,000 for the second, and 100,000 for the third. Completing 100% of the forecast plan earns a 500 yuan reward; reaching 80% results in no reward or penalty; below 80% incurs a 500 yuan fine. **Through sales forecasting, salespeople allocate tasks reasonably across stages, effectively avoiding the situation where they push inventory onto small terminals at month-end to meet sales targets.** Regarding attendance, Jia Yongshun adopted a points system, with internal staff managing points; 1 point = 10 yuan, and salespeople get 1 point daily. The company has a points assessment table; if no company rules are violated that day, the salesperson gets 1 point; violations deduct points, one point per violation, and can go negative. Additionally, Jintong Food turns salesperson goals into four 25 plans; for example, if a salesperson's monthly sales target is 400,000, they are assessed weekly on 25% of the target, 100,000, with a 5-point reward for achievement. Jia Yongshun told New Distribution, **The original intention of refining salary assessment, besides low-cost operation, is to hope employees can earn high salaries, but high salaries must come with high standards and requirements.** Through such a refined compensation plan, Jintong Food has seen steady growth in salesperson salaries alongside high annual sales growth, with average salaries reaching 8,000 yuan, over 30% higher than local peers. **-03- Channel Cultivation Never Goes Out of Style!** Discussing the future direction for distributors, Jia Yongshun shared some views: **In the next 3-5 years, traditional distributors, especially those with single brands, will see shrinking living space; small players will gradually be eliminated, and larger ones will emerge.** Many say distribution is getting harder, but it's precisely in these years that we rose, so opportunities still exist. How to seize them? I think the most important is channel cultivation. **For distributors, the core asset is the channel and outlets; channel cultivation never goes out of style.** **Whether it's brand owners or B2B, once they enter the market, they ultimately serve small terminal stores. The channel is in the distributor's hands, and ultimately, distributors are needed for service.** Jia Yongshun told New Distribution that Jintong Food has also implemented a series of measures around channel cultivation. **1. Build word-of-mouth service** Previously, while expanding the team and brands, they neglected service awareness to terminals; customers bought goods more because I had a combination of first-tier brands. Therefore, this year Jintong Food changed its mindset, focusing on service and reputation. Salespeople at terminals should not only sell goods but also provide value-added services, such as proactively cleaning shelves and teaching customers how to sell. Create a service benchmark so customers accept the premium from service, not just brand premium. **2. Build their own retail stores, not new retail** Regarding online retail, treat it objectively; it's just a tool. If this tool can bring incremental growth, it's fine, but many platforms now treat distributors as tools. Therefore, Jintong Food started laying out offline retail three years ago, opening three community retail stores, and plans to become a regional convenience store chain in the next five years. **3. Corporate operation** Improve the independent operation of finance, warehouse management, and sales teams, as well as logistics and delivery terminal construction, for standardized operations. Many trading companies have poor performance, possibly due to lack of standardized operations and unclear division of labor, so corporate operation is crucial. **Final thoughts:** In New Distribution's view, whether it's refined compensation methods or channel cultivation, the ultimate goal is to make distributors more valuable. No matter how fast the internet develops, how well new retail grows, or how much the distribution industry changes, as long as distributors can hold onto their "one acre and three points of land" channel network, they will never disappear.


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