As competition intensifies and market operation models diversify, the relationship between salespeople and distributors becomes increasingly complex. "The customer is God!" is a phrase all manufacturers and distributors repeat daily.

I. Irregular Management in Cooperation with Distributors Some salespeople naturally interpret this as—the distributor is God! The distributor is our bread and butter. In their eyes, the manufacturer, the distributor, and their own interests are completely aligned. As long as there are sales, everyone makes money. Where do sales come from? Naturally from the distributor. As long as the distributor pays and stocks up, the product sells, and they have performance. How to get the distributor to stock up? Of course, through your relationship with the distributor. For example: some distributors, after a meal, will pull out a market expense application form and ask the salesperson to sign. "He who eats is short of mouth," so regardless of whether such an expense exists, the salesperson signs and says, "Okay, go ahead and do it." A few days later, the distributor comes with receipts and reimbursement forms. This type of salesperson usually has nothing to do, but at the end of the month, they run to the distributor's office daily: "Brother X or Boss X, you haven't paid the company this month, right?" The distributor says, "Payment? I still have a warehouse full of goods; they're not selling at all. Why should I stock so much? I'll pay once the goods are sold!" The salesperson says, "Oh! Brother X, you must help me this month. I haven't met my quota yet; I'm only 100,000 short. You don't need to pay more; just pay 100,000." The distributor says, "With such low sales, what if I can't sell them?" The salesperson says, "What's there to worry about? The company will replace expired products; you won't lose anything. Just do me a favor and complete this month's payment task. It's just a bit of stock. How about this: next month I'll give you an extra 20,000 in market expenses, okay?" The distributor says, "I really can't stand you. I'll help you this once! Don't forget what you said!" The salesperson pats his chest and says, "Don't worry, when have I ever broken my word?" Thus, month after month, at the end of the month, the distributor sees inventory worth over 100,000, has spent nearly 100,000 in market expenses without a penny reimbursed, and monthly sales don't even reach 40,000. The distributor is stunned, looks for the salesperson, but the salesperson hides. The distributor, desperate, reports to the factory, resulting in the salesperson being fired and both parties suffering huge losses. Such cases happen frequently around us, but why do they lead to such results? From this type of salesperson, I've observed the following:

  1. They only know how to play politics, not do the work.
  2. They only see collections, not the market; only the distributor, not the consumer.
  3. Brotherhood loyalty harms people; they make empty promises to distributors, write bad checks to achieve performance, killing the goose that lays the golden eggs.
  4. They fundamentally don't understand how markets are built.
  5. This is directly related to the company leadership's guiding ideology: they only demand sales, not market indicators, encourage subordinates to work hard without teaching them how, and only say, "Whether it's a black cat or a white cat, if it catches mice, it's a good cat." They only focus on results, not process. There's another type of salesperson who treats themselves as the distributor's "God." For example: Xiao B is a regional manager at a large domestic company. He has rich market operation experience, from product launch to resource integration, market development, distribution channel management, and sales team building—all done well, with market sales consistently leading. One could say Xiao B is a rare talent. However, more and more distributors are becoming dissatisfied with Xiao B, and even the distributor in a model market changes every year. To address this, Xiao B reflected on his work. He quickly identified some of his own problems. He found himself overly proud, often saying, "Our company has strong brand appeal, quality products, first-class service, mature and advanced market operation models, and strong financial strength. Whoever becomes our distributor will make money; whoever 'disobeys' gets dealt with." He works very autocratically, rarely considering the distributor's feelings. For example:
  6. To combat competitors and prevent other brands from entering the market, Xiao B required distributors to lower selling prices and increase promotions, resulting in higher sales but no profit for distributors.
  7. To improve market service, Xiao B required distributors to add delivery vehicles and sales guides, increasing their operating costs.
  8. Seeing sales increase, Xiao B raised sales targets and required timely and full payment, increasing pressure on distributors' capital and inventory.
  9. For distributors who "don't obey management," the only word is "replace," causing anxiety.
  10. Xiao B never accepts distributors' invitations to meals, thinking they always have ulterior motives, while distributors think, "I kindly invite you, but you never show face. Do you have a problem with me?" Xiao B summarized three of his shortcomings:
  11. He only had a work relationship with clients, neglecting emotional communication. As a result, even when work was done well, no one praised him.
  12. He was too autocratic, lacking communication with distributors.
  13. He only focused on sales, not on distributor profitability; only on market development, not on the distributor's return on investment. What is the essence of the relationship between salespeople and distributors?
  14. There is no "God" relationship between salespeople and distributors; there is only one common god—the consumer.
  15. Salespeople and distributors are cooperative partners in the same boat.
  16. Salespeople also serve as the bridge between the manufacturer and the distributor.
  17. The interests of the manufacturer (salesperson) and the distributor are not completely aligned but are a unity of opposites. How should salespeople handle their relationship with distributors?
  18. Strive to represent the interests of the manufacturer, the distributor, and the individual. Unify the goals of all three parties toward a common goal (market sales).
  19. Communicate more to achieve three effects: first, correct attitudes; second, establish correct business thinking; third, find specific solutions to specific problems.
  20. Build personal friendship on the basis of work, with personal friendship serving work.
  21. Do both management—ensuring company policies are implemented—and service for distributors, doing practical things.
  22. As the manufacturer's spokesperson, be good at resolving conflicts between the manufacturer and distributor, coordinating relationships, and handling conflicts with distributors with "reason, benefit, and restraint," maximizing the mobilization of distributor resources to do market work.

II. Reasons Why Distributors Don't Proactively Cooperate What should you do when you encounter a distributor who lacks strength, doesn't cooperate, and doesn't obey management? Replace them? No!—Helping your distributor make money is the best management method. The relationship between manufacturer and distributor is like a young couple living together; quarrels are inevitable, but we can't demand a breakup at the first sign of disagreement. Before replacing a distributor, consider carefully:

  1. Check if the distributor still has resources available for our market development, including capital, vehicles, manpower, warehousing, and channels.
  2. Whether the existing distributor has a clear intention to continue cooperation.
  3. Comprehensively analyze current market conditions and both parties' resource advantages; if both work together, is there hope to defeat competitors and capture the market?
  4. Given the company's current influence in the local market, can we find a more powerful distributor? Are powerful distributors really better? Even if you find a more powerful distributor, will they focus on promoting your product? We've seen many large distributors treat new products like a bear breaking corn—grabbing one, dropping another. Many excellent new products die in the hands of "too busy" large distributors.
  5. The cost and risk of replacement—even if replacement costs are not a concern, once we revoke the distributor's rights, they will definitely find other products to do. Competitors may use your channel change to catch you off guard! Before deciding to replace, consider: Do you have mature channels? Have you firmly grasped the channels? Does your product have a contingency plan against competitors? Can you bear the resulting losses? Is your superior firmly supportive? Often, replacing a distributor doesn't solve the fundamental market problem; instead, it may make market work more passive. We must analyze specific problems, find the root cause, and apply the right remedy—changing the distributor's mindset, harmonizing cooperation, and getting the distributor to proactively follow the manufacturer's approach to do the market well is the right path. Any problem or conflict arises under certain historical conditions and has objective reasons. For distributor non-cooperation, we can try to analyze from the following two aspects:
  6. First, look for reasons within ourselves. A distributor with little strength would be eager to chase well-known brands and hot products; how could they not cooperate? This only shows that the brand has little influence locally, sales are average, or the manufacturer has shortcomings in cooperation, with the fundamental reason being that the distributor can't make money. At this point, we must put ourselves in their shoes: (1) Delayed reimbursement of distributor expenses, improper financial relationships between salespeople and distributors, etc., causing resentment. (2) Improper handling of product quality issues, untimely delivery, writing bad checks to distributors, excessive distributor inventory, and delayed promotional policies from the manufacturer, leading to dissatisfaction. (3) Due to wrong methods, multiple large-scale market promotions have no effect, and the manufacturer lacks market support, causing distributors to lose confidence in the product. (4) Regional managers are too high-profile, put on airs, look down on weak distributors, hurt their self-esteem, and cause aversion.
  7. Identify key problems within the distributor: (1) Tight capital, no money to pay. (2) Wrong attitude, not valuing the product, representing multiple similar products, or being courted by competitor manufacturers. (3) Chaotic internal management, working sporadically. (4) Limited by business thinking, the market remains stagnant, and business is struggling. (5) Poor service awareness, poor reputation in channel networks. (6) Taking chances, violating manufacturer regulations, dumping goods to other markets at low prices, intercepting manufacturer funds, etc. (7) Weak business team, poor execution, etc.

III. Purpose and Methods of Distributor Management What is the purpose of manufacturer management of distributors? Is it to make distributors obedient? Wrong! Managing distributors is just a means; sales and market are the purpose! What is the distributor's business purpose?—Profit. What is the regional manager's work goal?—Performance. The art of our regional managers lies in unifying the sales market, operational efficiency, and performance goals, unifying them in the basic work of the market, unifying them in consumer awareness and purchase, and mobilizing various resources to conquer the market in competition. Therefore, we can also draw this conclusion—the regional manager's work = helping distributors make money. As long as you can help distributors make money, all management problems will be solved. Some may argue: "My distributor makes hundreds of thousands or millions a year from our product, is very arrogant, and basically doesn't put me in their eyes, let alone cooperate!" Then I can only ask: "What promotion and guidance have you provided for your distributor's operations and market management? Have you grasped the channels? Regional managers who only rely on smooth talk, relationships, and putting on airs, without real skills, and rely solely on the manufacturer's strength as a backing, have no room to survive!" To take, you must first give. To get distributors to cooperate, first meet their needs—making money. Case: Below I'll share a personal experience—how I went from correcting a distributor's attitude, changing their business thinking, to helping them carry out basic market work, and assisting them in reviving a dying market. I hope it gives readers some inspiration.

  1. Historical Background and Market Status Previously, I served as a regional manager at a well-known domestic beverage company, responsible for formally developing the Jiangxi market. Before I took over, many distributors came attracted by our reputation, requesting to represent our products. However, our company had never formally developed the regional market, and there was no dedicated management, so as long as they paid, we shipped goods, without verifying their strength. After distributors stocked up, we didn't know if they made or lost money, leaving many problems. Since competitors entered the market early and had strong brand appeal, they had formed a significant competitive advantage and set up high defensive barriers. Although our product was a nationally renowned trademark with heavy advertising, its awareness in Jiangxi was low. Additionally, due to irresponsible market operations by some early distributors, our product's reputation was also low, and our high entry threshold made it difficult to recruit distributors in many areas of Jiangxi. To break through in the short term, we had to fully utilize existing distributors, strive to create a few model markets to give hope to those waiting distributors, and also radiate to drive recruitment in surrounding areas. Under such market conditions, I was assigned to the LP market. LP is a county-level city with a population of over 800,000, with a decent economy in Jiangxi, but our product's monthly sales there were only about 20,000 yuan, essentially a market on the verge of death.
  2. The Distributor's Distress—Understand Your Distributor When I met Boss C, the distributor in LP, after a few brief pleasantries, I could basically tell he was a simple but talkative person. He invited me into his shop and, without even offering me a seat, began pouring out his grievances—
  3. The manufacturer gives no market support, neither people nor funds, and competitors are so strong that our product is impossible to sell.
  4. The manufacturer is irresponsible; no one from the factory has visited in six months.
  5. The manufacturer's business manager only writes bad checks. Last time, a business manager came, took a casual tour of the market, and made me spend over 10,000 in market expenses, but sales didn't change. Later, when I sought reimbursement, they said that person had left and without senior approval, it couldn't be reimbursed. My 10,000-plus went down the drain.
  6. At the end of last year, the company required stocking up, and that batch is still unsold! It's about to expire.
  7. Last year, a batch had quality issues, and the company didn't care at all; I had to recall and destroy it myself. The company promised compensation, but it's been over six months with no news.
  8. The neighboring H city keeps dumping goods into my area. I've reported it many times, but you haven't dealt with it.
  9. In recent months, every shipment is missing what I need; they send what doesn't sell, and there are frequent stockouts. The market is actually being killed by you. ... Seeing Boss C's endless complaints and growing agitation, I quickly changed the subject. I asked, "Boss C, you represent many products, all new brands, right? I haven't seen them before." Boss C said, "Yes, they're all generic brands with no sales, but high profit, so I sell them on the side." I asked again, "What's your total monthly sales now?" Boss C said a bit embarrassedly, "About 50,000 yuan!" "50,000?" I was stunned. I said, "With 50,000 in sales supporting three salespeople, two vehicles, a storefront, a warehouse, plus other expenses, can you still make money?" Boss C said, "Our costs are low here, and with the high profit from these generic brands, I barely break even." Then Boss C continued complaining—the market is getting harder, competition is increasing, terminals are getting stronger, fewer people come to the wholesale market, operating costs are rising, and profitable products are fewer... I said to Boss C, "It's not that our product is bad, but that you haven't done well. Across the mountain, in H County, Anhui, a small county with a population of just a few hundred thousand, they sell over 600,000 a month. When the market isn't doing well, don't just find excuses; find methods! Last year, Anhui's total sales exceeded 200 million, while Jiangxi only had a few million. The main reason is that the company didn't pay much attention to Jiangxi before and didn't develop it, but you also need to find reasons within yourselves. Starting this year, the Jiangxi market will be formally launched—this is a favorable wind!" Boss C said, "I dream of doing well with your product, but I just can't find the right methods! I envy distributors in other places making money. When your people come, they just talk nonsense. The marketing plans from the company don't apply to our market; they're made behind closed doors. If market problems aren't solved, how can there be sales?" I looked at my watch; it was already past 12. Boss C and I had been talking standing for nearly two hours. I realized further conversation wouldn't yield valuable information, so I took my leave. Back at the hotel, I organized my thoughts from the morning's conversation and analyzed the problems:
  10. Analyze Problems (1) Boss C saw our product's success in most markets nationwide and believed it had great potential locally, holding high expectations for our product. (2) Due to previous cooperation issues, Boss C harbored dissatisfaction with the company and distrust of our salespeople, with resistance. (3) Boss C also wanted to do the market well, but due to his own business thinking, strength limitations, and some objective reasons, the market hadn't improved, and his confidence was severely shaken. (4) Boss C's capital, logistics, personnel, and channels could temporarily meet market development requirements, especially his salespeople, who were capable but lacked proper guidance. We needed to find countermeasures quickly.
  11. Find Countermeasures (1) Under such market conditions, replacing the distributor is difficult; even if we find a powerful one, they may not be committed. The strategy now is to support Boss C; if he truly is an "A Dou" (incapable person), then we'll look for alternatives while using him. (2) First, establish authority in front of Boss C, make him believe in my market operation ability, and understand that I'm here to help him do the market, not to take a cursory look. (3) Help Boss C sort out previous legacy issues, give commitments for things the company didn't do well, set resolution deadlines, and eliminate his dissatisfaction with the company. (4) Clearly tell Boss C that the Jiangxi market is now formally developed, with advertising and basic market investment plans finalized, and the market prospects are bright. If Boss C still wants to do it and make money, he must correct his attitude and change his thinking. (5) Rebuild Boss C's confidence in the company and mobilize his enthusiasm. (6) Personally visit the market, identify problems, and formulate a market development plan.
  12. No Investigation, No Right to Speak After lunch, I went to visit stores for a preliminary market survey. I found the following market problems:
  13. Boss C, focused on short-term gains, often sold products for other merchants, including some "three-no" products (no production date, no quality certificate, no manufacturer), and his after-sales service was average, so his reputation among terminals was poor.
  14. With competitors entering early and holding absolute market advantage, and our product's weak market foundation, a head-on confrontation was unwise.
  15. Boss C's human, material, and financial resources were limited; expenses were invested in terminals, but circulation channels lacked policy support, progressing slowly, and with strong competitors, business was even harder.
  16. Key channels like schools, internet cafes, restaurants, and KTVs were neglected.
  17. The township market, with huge sales potential and weak competitor defense, remained undeveloped.
  18. In one store, I found a batch of products with tampered production dates, and the packaging was dirty, looking like it was dug out of a trash heap. This infuriated me; the market was being killed step by step.
  19. Seize the Opportunity, Establish Authority—Correct Attitude Back at the distributor's, I placed the expired products on Boss C's desk and asked what was going on. Boss C said nonchalantly, "There are over a dozen cases of expired stock. It's a waste to throw away, and the factory doesn't care, so I came up with a solution." I patiently explained the various harms of this practice, but he showed no reaction. His indifferent attitude made me lose patience, and I finally said, "If this isn't resolved immediately, you won't represent our product anymore." I reported to my leader and called the marketing department to stop shipping to him. Seeing my decisiveness, which was completely unexpected, Boss C got scared and realized the seriousness. He proactively admitted his mistake and, as I required, wrote a guarantee—promising no similar issues in the future, obeying the manufacturer's personnel management, strictly implementing all market management regulations, etc.—signed and stamped it. Then he bought back all expired products at retail price from supermarkets and destroyed them in front of me.
  20. What Backward Distributors Need Most is the Manufacturer's Intellectual Support—Change Thinking After resolving the expired product issue, I offered several suggestions for his market development and business thinking: (1) Give up all generic brands and focus wholeheartedly on our product. (2) Suspend terminal investment; with limited funds and weak position, stop the attrition war with competitors. (3) Strengthen terminal displays, focus on building campus stores, breakfast spots, internet cafes, bus stops, and some C/D-class stores, creating our own advantageous channels. (4) Elevate township market development to a strategic level—leverage price advantages, surround the city from the countryside, and quickly capture rural markets. In short, concentrate superior forces, start from competitors' weak points, and develop gradually—that's our path to victory. Before I finished, Boss C slapped his thigh: "Ah, we're thinking alike! I've been considering this too, but I'm too close to the trees to see the forest." "I haven't been in business long and don't know much about corporate culture and market models. I dream of doing the market well but don't know how. I heard you used to be a distributor too. This time you must help me, teach me successful experiences and advanced methods." "I'll listen to you. As long as I can make money, I'll do whatever you say." Boss C looked at me with expectation. So I shared successful methods and experiences from surrounding markets. Watching Boss C go from confusion to understanding to confidence, I knew today's communication had achieved its effect. Thinking alone doesn't create value; the key is implementation—determine plans, set standards, execute efficiently, manage by objectives—details determine success or failure. The next day, I brought the designed plan to Boss C, who simply said, "I'll do whatever you say—as long as we can do the market well and I can make money."
  21. The Execution Level of Grassroots Sales Staff Determines the Quality of Market Work; the Key to Breaking Through the Market Lies in Building a Passionate and Combat-Ready Business Team (1) Team Motivation: Gather the distributor and sales staff to discuss current market development problems and internal management issues. Listen to sales staff suggestions, affirm their achievements; increase sales commission rates, and decide to allocate part of the market expenses to reward outstanding performers. Finally, discuss our product's market selling points and competitive advantages, encouraging everyone to make it the number one brand locally. After the meeting, the sales staff's usual listlessness vanished, replaced by eagerness. Passion without goals is blind; goals without methods are dangerous. (2) Team Training: Train sales staff on product knowledge, distribution techniques, display standards, customer maintenance, etc. (3) Lead by Example: There's a gap between "theory" and "practice," and "standards" and "role models" are the best ways to achieve "unity of knowledge and action." So I personally took several sales staff to distribute, tidy shelves, adjust displays, and negotiate with buyers, repeatedly telling them: Success cannot be copied, but successful experiences and methods can be borrowed. Everyone should summarize their own sales techniques based on the characteristics of the sales target, product selling points, and personal strengths. (4) Follow-up Guidance: For newly trained sales staff, it's hard to digest training content immediately, so post-training follow-up guidance is crucial—correct mistakes, reinforce standards. (5) Practical Exercise: Sales is a highly practical job; sales skills can only improve through practice.
  22. Successful Regional Market Development Requires Not Only an Excellent Business Team but Also Scientific Market Strategy Guidance and Feasible Promotion Plans (1) Segment Sales Channels: Terminal stores, B-class chains, C/D-class convenience stores, restaurants, hotels and guesthouses, nightclubs, internet cafes, bus stations, newsstands, cold drinks, campus stores, wholesale markets, township secondary wholesalers, township direct-supply supermarkets, rural convenience stores, etc. (2) Collect and Organize Terminal Information: Including customer data, consumer feedback, competitor information and promotions, current product status, consumption environment and trends, and analyze the competitive environment and landscape. (3) Through market surveys and competitive analysis, Boss C and I formulated the following market breakthrough strategies:
  1. Target development of key supermarkets in townships with less competitive pressure. Invest heavily, create model stores, and attract powerful township secondary wholesalers.
  2. Quickly seize township markets, establish and improve township secondary wholesale channels. In some townships, leverage our product's higher profit margin and secondary wholesalers' low loyalty to poach competitors' customers and achieve deep distribution.
  3. Establish incentive-based sales systems to motivate secondary wholesalers to quickly enter rural markets, forming a "surround the city from the countryside" sales pattern.
  4. In urban areas, fight hard in channels with low entry barriers, low investment, and high returns, such as bus stations, campuses, internet cafes, breakfast spots, and fast-food outlets.
  5. Select some C/D-class retail stores with good business and high sales for special displays, focus on building community model stores, gradually increase small store distribution rate and survival rate, and achieve cash-on-delivery. Display at distribution points must be superior to competitors, with POP and other terminal promotional tools posted; visits must follow routes and cycles, provide good service, and maintain customer relationships.
  6. Suspend investment in hotel channels for now; wait until other channels achieve phased victories, with expense support and a stronger business team, then compete directly with competitors. After determining the overall approach, Boss C and I formulated detailed promotional plans, execution schedules, and assessment methods based on actual conditions.
  1. Motivate the Distributor After finalizing all plans, when we calculated the costs, Boss C's face turned sour again. Such a large "systematic project"—the manufacturer's allocated expenses were a drop in the bucket. At this point, I had nothing to say—even a clever housewife can't cook without rice! So Boss C and his wife went into another room and argued for a while. Finally, Boss C came out red-faced, hesitated a bit, then gritted his teeth and slammed the table: "I'm all in! I'll mortgage my house for a loan. Don't worry about funds. The key now is: what's the success rate? When will the investment be recovered?" I said, "We've already analyzed these issues. Don't ask me again. The key now is whether you believe in yourself, dare to challenge yourself, and want to change your current business situation." Boss C stopped hesitating and blurted out, "Let's fight!" I said, "Place yourself in a desperate situation to survive; this battle must be won!" At the end of the month, when I returned to the company, the internal staff handed me the monthly sales report. When I saw LP's sales, I finally smiled—150,000 yuan, a 650% increase from last month, higher than the total sales of the previous half year. I immediately congratulated Boss C and reminded him, "This sales volume is just moving goods from your warehouse to terminal shelves; it's not real sales!" Boss C also said, "Yes! Many places are paying the first payment, and the second shipment is settled together. I'm under a lot of capital pressure now!" I said, "We must strike while the iron is hot; promotions must follow. Success or failure hinges on this." Two months later, I saw the sales report at 180,000 yuan—LP's basic market work was showing results.

IV. Reflections on Distributor Management

  1. Reflecting on my distributor management experience, good distributor management is essentially—attitude determines everything, thinking determines the way out, and details determine success or failure. That is: Use corporate culture to arm distributors' thinking and correct their attitudes; assist distributors in market planning and clarify work thinking; help distributors improve management and train their business teams; use sales profits and sales policies to motivate distributors to proactively do market work; supervise distributors in implementing the company's market policies and promotional plans; and use the company's market management regulations to manage and constrain distributors. For distributors, an excellent regional manager is both a strategist and a teacher.
  2. To do distributor management well, don't constantly talk about "management." Often, distributors surpass us in social experience, age, and personal achievements, and they care about face. In such cases, we can use different terms—"communication," "cooperation," and "win-win."
  3. A reminder to all regional managers: Don't measure distributors solely by collections; first reflect on whether your work is done well. If market work is done well, collections will come to you; if not, you'll be chasing collections!
  4. Don't always stare at the money in distributors' pockets; look further—distributors, secondary wholesalers, terminal customers. Only when consumers are willing to pay at the terminal will your collections be guaranteed!
  5. Represent the company's interests by completing sales tasks and market indicators; represent the distributor's interests by helping them make money; represent your own and your sales staff's interests by exceeding sales targets and making money for everyone. Unify these three interests and resources into specific market work. The method to do the market well and complete sales collection tasks—is to help customers make money! Source: Baijiu Distributor Academy