---
title: "Seven Sins of Slow Sales in Peak Season"
description: "Distributors are busy preparing for the peak season, hoping to make a fortune. However, sales may not increase or even fall below normal levels. This article analyzes seven reasons that hinder distributors' shipments, including excessive price cuts, counterfeit products, low-profit old products, part-time salespeople, terminal arrears, high turnover of salespeople, and inactive secondary distributors."
author: "New Distribution"
publisher: "New Distribution"
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published: "2015-04-12"
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# Seven Sins of Slow Sales in Peak Season

> Distributors are busy preparing for the peak season, hoping to make a fortune. However, sales may not increase or even fall below normal levels. This article analyzes seven reasons that hinder distributors' shipments, including excessive price cuts, counterfeit products, low-profit old products, part-time salespeople, terminal arrears, high turnover of salespeople, and inactive secondary distributors.

During this period, distributors are busy preparing for the peak season, hoping to make a fortune. When sales go up, distributors are naturally happy, but when sales are hard to increase, or even worse than usual, it's hard for them to smile. So, what are the reasons that hinder distributors' shipments?

**1. Excessive Price Cuts Reduce Product Value**
Phenomenon: Manager Lin from Zhejiang said that he represents a product with a retail price of around 450 yuan. Usually, he offers a price of 380 yuan to group-buying customers. During the peak season, he started adjusting the price, hoping to boost sales before the holiday. However, he cut the price once during New Year's Day and again in late January. Customers who were initially interested suddenly became suspicious: if the price keeps dropping, will it drop further?

Despite salespeople repeatedly explaining that this was a pre-holiday promotion and prices would not drop further, and would return to previous levels after the holiday, consumers still felt the product's value was low, affecting sales during the peak season. Manager Lin regretted it, thinking he was giving customers a benefit, but some didn't appreciate it and it damaged the product's image.

Analysis: The peak season is the time for products to sell in volume. It's understandable that distributors are eager to sell, and almost all merchants run promotions during this period to boost customer enthusiasm. However, improper methods can cause losses.

For example, consumers unfamiliar with the product might be happy to see promotions, but group-buying customers who regularly consume the product have a certain awareness of the brand and price. One price cut is a promotion, but two consecutive cuts can make customers feel they were "cheated," thinking the distributor had set the price too high, reducing the brand's perceived value. Especially for mid-to-high-end alcoholic beverages, customers sometimes buy for "face," so they naturally want the product to have sufficient value. Therefore, promotions should be well-measured.

**2. Counterfeit Products Erode Market Share of Genuine Products**
Phenomenon: Zhang Yufeng, general manager of Yunfeng Snacks in Zhumadian, Henan, said that once a product becomes popular, many counterfeit products quickly follow in the market. Merchants want to take advantage of the popular product's "tailwind" to make quick money, but this greatly harms the genuine product. During the peak season, there are even more counterfeit products, especially in county-level markets, where they flood the market and stealthily grab market share from genuine products.

Before the Spring Festival, consumers visit relatives and friends, and many give alcohol as gifts. Zhang Yufeng explained that they choose counterfeit products because, on one hand, they can't distinguish genuine from fake brands, and on the other hand, counterfeit products are very similar to genuine ones in packaging and name, but are much cheaper, sometimes even buy-one-get-one-free, making consumers more willing to choose them.

Analysis: Counterfeit products "rampaging" in the market before the holiday affects distributors' normal sales, largely because consumers don't know enough about genuine products. In response, distributors should strengthen brand promotion in daily operations, increase consumer awareness, and station personnel at high-traffic sales outlets to explain product information.

At the same time, they should conduct more experiential marketing, inviting local key figures to participate, so they can learn more about the product. With their local influence, consumers who follow them will naturally choose genuine products. Counterfeit products are also common in county-level markets, so distributors should prepare product communication in advance and design pre-holiday promotions well.

Moreover, relying solely on the distributor's own efforts is difficult to accomplish such a large workload, and it also tests the distributor's cash flow, especially at year-end when cash flow is tight. At this time, they can join forces with manufacturers to invest together in the market.

**3. Low-Profit Old Products Struggle to Increase Sales**
Phenomenon: Han Bing, manager of Dongying Huijin Liquor in Shandong, said that salespeople and terminal stores are willing to promote high-profit products, especially during the peak season when customers are easier to "win over." If high-profit products sell in large volumes, they will achieve good performance at year-end. However, for distributors, old products are equally important, and if sales decline during the peak season, the following off-season will be even harder. So, despite difficulties, they still need to find ways to promote low-profit products.

Analysis: Products have their own life cycles. Thin profit margins are not a temporary issue; they go through a process. Because distributors didn't maintain the market well before, product profits become increasingly transparent. During the peak season, if no one is willing to promote them, sales will decline.

Now the market is highly competitive. Old products not only face competition from new products but also have to compete with other popular brands for market share. Therefore, distributors should plan countermeasures before the holiday, such as setting sales targets for salespeople to ensure they consider all products, and appropriately increasing commissions for old products to boost salespeople's enthusiasm. For terminal customers, distributors should set reasonable profit margins.

Additionally, low-profit old products generally have good market recognition, meaning natural sales can be guaranteed. At year-end, distributors can run promotions to increase consumer self-selection rates, making terminal customers more willing to stock these old products. Alternatively, they can bundle old products with new ones to promote sales of both.

**4. Part-Time Salespeople Distract from Work**
Phenomenon: Manager Li from Hebei mentioned that some salespeople in the company do part-time jobs, using company resources to serve other companies. Such salespeople are hard to supervise; you might not even know who is part-time. If products don't sell well, they may blame the product or company policies rather than admitting their lack of effort. Especially when they are out in the market, it's hard for distributors to know what they do, relying only on their travel logs. At other times, part-time work might be tolerated, but during the peak season, if they continue, it can be very harmful to the company.

Analysis: Generally, distributors don't encourage part-time work but tolerate it, which inadvertently emboldens salespeople. They think the distributor doesn't care, so they continue this habit into the peak season. But for distributors, the peak season is the time to sell in volume, and they pay salaries. If products don't sell because of salespeople's lack of effort, isn't it a waste of the golden sales period?

Therefore, once a part-time salesperson is discovered, it's best to find out what products they are promoting. If they are competing with the company's products, they should be decisively warned or even punished to set an example. If they promote products in a different category and the distributor doesn't want to lose these employees, it's best to set clear rules: part-time work is allowed but within limits, especially not using company resources during the busiest time to benefit others. Company products must come first, and only then can part-time work be permitted within a certain scope; otherwise, such employees should be dismissed.

**5. Terminal Arrears Affect Cash Flow**
Phenomenon: Due to increasingly fierce market competition, many distributors have begun to tacitly allow terminal arrears. However, at year-end, if terminal arrears are not collected in time, it increases cash flow pressure. Manager Chen from Liaoning encountered this problem. To encourage terminal customers to stock up, he usually allows them to owe part of the payment. But some salespeople are not timely in collecting debts. When they urge payment at year-end, terminal customers make excuses about tight year-end funds. Manager Chen needs funds for product promotion, additional displays, and increased terminal rebates, but without sufficient funds, some work cannot proceed, affecting normal product sales.

Analysis: Smooth cash flow ensures the company's normal operation. Some distributors manage too loosely, not paying enough attention to these tasks, and by year-end, a lot of arrears accumulate, while salespeople haven't been diligent in collecting debts, increasing sales pressure. Without sufficient financial support, product promotion will face obstacles.

Therefore, distributors must improve their management capabilities. Terminal arrears are normal, but they cannot be allowed to drag on indefinitely; otherwise, over time, they may become bad debts, making recovery even harder.

**6. High Salesperson Turnover Hurts Distributors**
Phenomenon: Meng Xianjun, general manager of Zhejiang Kaicheng Food Store, said that at year-end, distributors raise treatment for salespeople to boost sales, and some unstable salespeople take this opportunity to resign and join companies with better benefits. Ordinary salespeople leaving may not cause much shock because their resources are often limited. But if a sales supervisor resigns, the impact on the distributor is more severe because they often hold key accounts. However, salesperson is an unstable profession, and companies may implement measures to prevent resignations, but sometimes it's hard to prevent; other companies may offer better incentive policies, as people naturally want to move up. If important salespeople resign at year-end, product promotion will face considerable pressure.

Analysis: In recent years, distributors have reported increasing turnover of salespeople, which may be a common phenomenon in this profession. At year-end, some distributors offer attractive conditions to boost sales and attract excellent talent, but this causes losses to other companies. To retain salespeople, distributors should focus on daily cultivation rather than one-time rewards. For example, promote outstanding salespeople to management positions, giving them better development platforms, and they will naturally stay. Also, pay attention to emotional communication with salespeople, retaining them through relationships, hoping they will work together to boost peak season sales. Additionally, distributors should find out the reasons for salesperson resignations to find better solutions.

**7. Inactive Secondary Distributors Hinder Product Promotion**
Phenomenon: Lu Litao, manager of Linyi Yingnan Litao Liquor in Shandong, pointed out that secondary distributors generally have low loyalty. They are willing to sell high-profit products, but "there's always a better offer." Which distributor can guarantee their product profit is the highest? The peak season is very important for distributors; only if secondary distributors actively promote the company's products can sales be better improved.

Analysis: Indeed, for circulation distributors, they rely heavily on secondary distributors. If secondary distributors are not active, it may affect overall product sales. At year-end, distributors can formulate promotional plans based on local conditions to increase their enthusiasm. Of course, they should also give secondary distributors a development vision in daily operations, making them confident in the brand and the cooperating enterprise, thus promoting long-term cooperation. Additionally, at year-end, distributors can send salespeople to help secondary distributors promote products, reducing their workload.

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