Although manufacturers and distributors are partners, they each have their own interests. As they say, in business, one must be business-minded. Some insincere words from merchants still require us to keep our eyes open, see through the surface to the essence, and understand their true intentions. Knowing yourself and your enemy leads to victory. For new sales representatives just entering the industry, who often blindly trust and follow others, the following content will be helpful.
"Selling your product doesn't make money." Any merchant, no matter what they sell, will say this. Distributors continue to sell your product for two reasons: No profit but high volume, or low volume but profit. The first scenario: Products with high market awareness and large sales volume often have high price transparency, leaving merchants with no or minimal profit. Why do they still sell them? Mainly because these products bring foot traffic and business opportunities, generating profit through the sale of other products. The second scenario: Products that are new to the market with low awareness. Although sales are low, merchants can control market prices through exclusive distribution and still make a profit. In this era of thin margins, can you still find a product with huge profits and minimal investment?
"Make me the exclusive distributor, and I'll take all the sales volume you require." If the merchant fails to meet the annual target, they will only say sorry, and the market risk ultimately falls on the manufacturer. If you say yes, but require the merchant to deposit a sales performance bond as compensation to the manufacturer in case of failure, few merchants would be willing to do so.
"Business is about being a good person." (Implying they are generous) Anyone can speak grand principles; the most important thing is to watch their actions. In fact, merchants value nothing more than profit, just expressed differently. Some sales representatives abandon principles and make private deals with unscrupulous merchants, often because they think the other party is a good friend and loyal, leading to major mistakes.
"Give up Brand A? No way. I can register another company to operate your Brand B." If they also demand exclusive distribution of your Brand B, it is entirely possible they have the following purpose: To prevent competitors from obtaining the distribution rights of Brand B and competing with their Brand A. In reality, they will not actively promote Brand B. Only when the manufacturer pushes hard will they symbolically stock some goods. No wonder many manufacturers sign exclusive distribution agreements with distributors.
"You are an international big company; losing a little money is a drop in the bucket." (They cannot afford to lose) Wrong. Both merchants and manufacturers, regardless of size, aim for profit as the ultimate goal. In business activities, both parties have their own interests. However, some of our manufacturers' sales personnel do not have a clear understanding of this. At least in their hearts, they agree with the customer's view, and to achieve personal sales targets, they sometimes make unprincipled concessions to customers.
"Product A has strong advertising, competitive pricing, and credit support." Do not believe that Product A really gives them so much support. Perhaps they say the same thing to the manufacturer of Product A. Distributors often "ignore" the work you have done, with only one purpose: to obtain more favorable conditions from the manufacturer.
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