Sales = Number of terminals × Turnover rate × Number of product items. The more terminals covered, the faster individual product turnover, and the richer the product mix, the easier it is to achieve terminal sales. However, things are often easier said than done. Currently, difficult sales and slow-moving products are headaches for companies and distributors. Without sales, there's naturally no profit. To achieve terminal sales, the market must be meticulously cultivated. Doing market work means getting people active and terminals vibrant; otherwise, you're just running a warehouse. Products piled up in a warehouse naturally won't sell. So where does sales come from? The effect of covering one terminal versus ten thousand terminal stores is vastly different. However, with terminal coverage, distributors also need to control terminals and accurately measure product turnover. After solving terminal control and turnover rates, the next step is to promote multiple varieties and items—this is a gradual process. So, what factors actually influence terminal sales? Three Major Factors Affecting Terminal Sales The three key factors affecting sales are share, control rate, and visit rate. Share is usually calculated by region: a brand's share is its sales revenue compared to the regional category's market capacity. The higher the share and control rate, the easier it is to generate sales. Among these three, visit rate is the most important. In the hot summer, even salespeople prefer to work in a cool and comfortable environment. But after distribution, maintenance is needed. Under such conditions, distributors need to implement process management and incentive measures for salespeople. If salespeople neglect terminal visits, their products will inevitably be suppressed or covered by competitors. When you're not looking, competitors' salespeople may have damaged terminal displays, posters, store signs, POP, etc., curbing product sales. Without these visual merchandising elements, it becomes even harder to move products. Visiting customers and maintaining relationships requires being at the terminal, but using new media tools to connect and maintain relationships is also necessary. Fully implementing these three factors is not easy, but if all can reach above 80%, the sales problem will surely be solved. "Our product is priced higher than competitors, has no advertising, and fewer market policies, so terminal owners don't want it." When a product faces sales difficulties, distributors often hear their salespeople complain like this. This is exactly when strong push from salespeople is needed, adhering to four principles. Four Principles to Stick to for Sales The first principle is the "point-line-plane" principle. First, do well in one terminal store or image store, then expand to a street, then radiate to a region, and finally build a national brand. Second is the 80/20 principle. We often think 20% of outlets generate 80% of sales, but it's not quite like that. Large supermarkets emphasize pull, while mom-and-pop stores emphasize push. These 20% of outlets serve to radiate influence over the surrounding trade area, affecting 80% of sales and profits. Third is the matching principle. Channel layout should match product positioning. High-end products should appear in high-end venues to showcase their status. Evergrande Spring Water had sales problems because it was distributed through convenience and circulation channels. Additionally, Kunlun Mountain, using JDB's herbal tea channels, also lost its "high-end identity." Finally, the "mushroom strategy" principle. All strong brands have followed this principle: first select and occupy the most attractive target regional markets, then move to less attractive ones, and gradually radiate nationwide. Wahaha, Master Kong, and Wanglaoji all developed along the route from advantageous markets to balanced markets to disadvantageous markets. Distributors should do the same for distribution and sales: first do well in their strong coverage areas, then gradually expand business scope. Five Countermeasures to Solve Sales Difficulties Many factors affect product sales; distributors need to address terminal control, terminal management, soon-to-expire products, and distribution timing. Countermeasure 1: Terminal evolution, push as priority. Distributors' control over terminals is a gradual evolution. Convert blank stores where products haven't entered into target stores where you want them. Visit terminal owners frequently to build relationships. The more familiar you are with owners, the stronger the relationship, which helps product turnover. At this point, target stores become relationship stores, also called loyal stores. Simply placing products in terminals doesn't guarantee sales; sales often occur in stores with good relationships. In this process, the terminal owner's push is far more important than consumer pull. Then, in good relationship stores, choose prime locations like front shelves or counters to place products, and pay the owner a fee—this greatly benefits sales. After distribution, consider how to occupy the owner's inventory, managing your product's inventory ratio to ensure backup for sales. Once inventory is in place, think about how to drive sales. At this point, negotiate with the owner to promote your product as a priority, and based on monthly sales, give rewards like TVs or microphones to ensure terminal push. After the relationship between distributor and owner deepens and you occupy significant warehouse space and prime display positions, leverage this push to turn the terminal into a distributor's exclusive store—then sales will surely follow. Countermeasure 2: Terminal management, salesperson responsibility. Who is responsible for terminals? Generally, salespeople are directly responsible for terminal stores. At this point, clearly define each salesperson's assigned terminals, and specify visit frequency, standards, and performance. Normal visit frequency should be once a day or once every three days; long-term neglect of terminals can easily lead to switching allegiances. Visit standards require terminal visual merchandising to build product image. Additionally, salespeople should go deep into terminals, communicating face-to-face with owners, not just stopping outside the store and expecting to reach cooperation. During this process, a terminal inspection system must be established. Distributors can use WeChat check-ins and GPS positioning to verify whether salespeople enter stores, what they do, the standard effect of their visual merchandising, and their daily goals. This system should be tied to salespeople's wages, not just basic salary plus commission, but with multi-dimensional assessment criteria. For example, rewards for opening new terminal stores, penalties for losing terminals; rewards for standard visual merchandising, penalties for non-compliance. This requires systematic management; simply assessing employees by sales volume may bring quick results but also quick failure. Countermeasure 3: Proper handling of soon-to-expire products. Managing soon-to-expire products is also important. Expired products are neither the manufacturer's fault nor due to poor sales, but rather caused by distributor management. At this point, transfer near-expiry products from slow-moving locations to fast-moving ones for promotions, such as supermarkets or community convenience stores. If expired products aren't handled promptly, it leads to returns and exchanges, increasing costs. Countermeasure 4: Master the best distribution timing. Conventionally, distributors often choose to distribute during the off-season, which indeed captures the peak sales season. However, off-season distribution requires enduring the pressure of slow sales, preparing for stock transfers, exchanges, and related services. Therefore, distribution should differentiate between peak and off-seasons; distributing in the middle period between them ensures sufficient stock for peak season marketing and avoids timing delays. Countermeasure 5: The 3-6 rule for distribution rate. Survival line = 30%, brand line = 60%. If a distributor's distribution and control rate reaches 30%, survival is not an issue. But such a rate inevitably increases inventory pressure, leading to a large amount of near-expiry products over time. Only when distribution and control rates reach 60% in all business coverage areas—cities, counties, towns—will sales be relatively smooth, and the distributor's and company's reputation be established. Credit sales are also an important factor affecting sales. Credit sales tie up a distributor's capital, preventing good relationship maintenance and reducing terminal push. Additionally, product placement, display, and product mix affect the terminal owner's enthusiasm to recommend. Placing products at the entrance, in visible spots, or where consumers can easily reach them, and bundling multiple items, is more conducive to sales. Implementing new product launch scripts and building the distributor's influence at terminals are also important factors for promoting sales. Six Key Points to Remember for Terminal Sales What is the most objective and effective way to look at terminal sales? Simply put, there are six key points. First, look at distribution rate: besides understanding your own distribution, it's necessary to know competitors' single-store variety and inventory, and record their price bands to adjust your pricing accordingly. Second, look at your product's visual merchandising: distributors should have salespeople record the elements of creating a product image and use a visual merchandising scorecard to assess employees. Third, look at shelf age: check production dates, whether first-in-first-out is followed, whether there are near-expiry or expired defective products, whether inventory is reasonable, and whether there are stockouts or overstock. Fourth, look at relationships: whether terminal owners know the salesperson's name and visit cycle, whether there are complaints or grievances, and which stage the relationship is at—no conversation, formal talk, normal communication, or close rapport. Fifth, look at service quality: whether terminal owners know the delivery person's phone number, product delivery time, promotion tiers, and whether promotional items are withheld. Sixth, look at the distributor's terminal influence: whether terminal owners know the customer's name or company name. When people move, products sell. The problems behind slow-moving products are what distributors should focus on. Sales is a system and hard work; there are no shortcuts or standard answers. After products are distributed, continuous follow-up, maintenance, and follow-through are needed to sustain sales. 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