Introduction: What should you do when you encounter a distributor who lacks strength and refuses to cooperate with management? Replace them? No! — Helping your distributor make money is the best management method.

Distributors cannot be easily replaced The relationship between a manufacturer and a distributor is like a young couple living together. It's common for "a flower to be inserted into cow dung," and there will inevitably be quarrels. We cannot, at the first sign of disagreement, beat the couple apart and tell the woman, "Divorce this poor guy; I'll introduce you to a rich man!"

Before replacing a distributor, careful consideration is needed:

  1. Check whether the distributor still has resources that can be used for our market development, including: capital, vehicles, manpower, warehousing, channels, customer relationships, etc.
  2. Whether the existing distributor has a clear intention to continue cooperation.
  3. Comprehensively analyze the current market conditions and the resource advantages of both parties. If both sides work together, is there hope to defeat the opponent 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 we find a more powerful distributor, will they focus on promoting our products? We have seen many large distributors treat new products like a bear breaking corn—seeing one, breaking one, and discarding one. Many excellent new products die in the hands of "too busy" large distributors.
  5. The cost and risk of replacing a distributor—even if the cost of replacement is not considered; once we take away the distributor's rights, they will definitely find a substitute product. Competitors are likely to take advantage of your channel change while you are still recovering, catching you off guard! Do you have mature channels? Have you grasped the channels? Do you have a plan to defend against competitors? Can you withstand the resulting losses? Is your superior firmly supporting you?

In many cases, replacing a distributor does not solve the fundamental market problems; instead, it may make market work more passive. We must analyze specific issues, find the root cause, and apply the right remedy—transforming the distributor's mindset, harmonizing the cooperative relationship, and enabling the distributor to proactively follow the manufacturer's ideas to do the market well is the right path.

Analyze the reasons for distributor non-cooperation Any problem or contradiction arises under certain historical conditions and has its objective reasons. We can try to analyze from the following two aspects:

First, look for reasons within ourselves. A distributor with little strength would eagerly pursue well-known brands and hot-selling products; how could they not cooperate? This only indicates that the brand has little influence locally, sales are average, or there are many shortcomings in the cooperation process. The most fundamental reason is that the distributor cannot make money. At this point, we must put ourselves in their shoes:

  1. Delaying payments to the distributor, improper financial relationships between salespeople and distributors, etc., causing the distributor to feel resentful.
  2. Improper handling of product quality issues, untimely delivery, salespeople making empty promises, excessive inventory at the distributor, and delayed promotional policies from the manufacturer, leading to distributor dissatisfaction.
  3. Due to wrong approaches, multiple large-scale market promotions have been ineffective, and the manufacturer lacks market support, causing the distributor to lose confidence in the product.
  4. Regional managers act too high-profile, put on airs, look down on weak distributors, hurt their self-esteem, and cause aversion.

Second, identify the key problems within the distributor themselves:

  1. Tight capital, unable to pay for goods.
  2. Poor attitude, not valuing our products, representing multiple similar products, or being courted by competitors.
  3. Chaotic internal management, working sporadically.
  4. Limited by business thinking, the market has been difficult to break through, and business is struggling.
  5. Poor service awareness, poor channel network relationships and reputation.
  6. Taking chances by violating company regulations, dumping goods to other markets at low prices, intercepting company expenses, etc.
  7. Weak business team, poor execution, etc.

The 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 only a means; sales and market are the goals!

What is the purpose of a distributor's business? — Profit. What is the goal of a regional manager's work? — Performance. The art of our regional managers lies in unifying the sales market, operational efficiency, and performance goals, unifying them in basic market work, unifying them in consumer awareness and purchase, and mobilizing various resources to capture territory in market competition.

Therefore, we can draw a conclusion—the regional manager's job is to help distributors make money. As long as you can help distributors make money, all management problems will be solved.

Someone might retort, "My distributor makes hundreds of thousands or millions a year from our products, but they are very arrogant and basically don't take me seriously, let alone cooperate!"

Then I would 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, putting on airs, lacking real skills, and relying solely on the company's strength as a backing have no room to survive!"

To take, you must first give. To make distributors cooperate, first meet their needs—making money.

Below, I will share a personal case—describing how I helped a distributor who lacked strength, had complaints about the company, lacked confidence in the market, violated company regulations, distrusted factory personnel, and was unwilling to cooperate. I will explain how I corrected the distributor's attitude, changed their business thinking, and then developed the market foundation to help them grow, reviving a dying market. I hope this can inspire readers.

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 not formally developed the regional market, and there was no dedicated management. As a result, as long as they paid, they got goods, and the distributor's strength was not verified. Whether the distributor made a profit or loss was not our concern, leaving many legacy issues.

Because competitors entered the market early and had strong brand appeal, they had a first-mover advantage and set high defensive barriers. Although our product was a nationally renowned trademark with heavy advertising, its brand awareness in Jiangxi was not high. Additionally, due to irresponsible operations by some guerrilla-type distributors in the early stage, the product's reputation was also not good. Combined with high entry barriers for distributors, recruitment was difficult in many areas.

To break through in the short term, we had to fully utilize existing distributors and create several model markets to give hesitant distributors hope, while also radiating and driving recruitment in surrounding markets.

Under such market conditions, I went to the LP market to visit local distributors. LP is a county-level city with a population of over 800,000, and its economic level is relatively good in Jiangxi. However, our product's monthly sales there were only about 20,000 yuan, basically a market on the verge of death.

The distributor's distress—understand your distributor I met with Distributor C, the local distributor in LP. After a few simple pleasantries, I could tell he was a simple but talkative person. After inviting me into the store, without even offering me a seat, he began to pour out his grievances:

  1. The company provides no market support—neither personnel nor expenses, and competitors are so strong that it's impossible to do business.
  2. The factory is irresponsible; no one from the factory has visited in half a year.
  3. The factory's business manager made empty promises. Last time, a business manager came, took a casual look around the market, and had me spend over 10,000 yuan on market expenses, but sales barely changed. Later, when I asked the company for reimbursement, they said that person had left and without company approval, it couldn't be reimbursed. Damn it, my 10,000 yuan went down the drain.
  4. At the end of last year, the company required me to stock up, and that batch of goods hasn't sold out yet! It's about to expire!
  5. Last year, a batch of goods had quality issues, and the company didn't care at all. I had to recall and destroy them myself. The company later said they would compensate, but after half a year, there's still no news.
  6. The neighboring H city keeps dumping goods into my area. I've reported it to the company many times, but no one pays attention.
  7. In recent months, every shipment is missing what I need; they send me the slow-moving items, and there are frequent stockouts. The market is being killed by you guys.

I saw that C was complaining endlessly and getting more agitated, even using profanity, so I quickly changed the subject. I asked him, "C, you represent many products, all new brands, right? I haven't seen them before." C said, "Yes, they're all miscellaneous brands with no sales, but the profit is high, so I just sell them along."

I asked again, "What's your total monthly sales now?" C said a bit sheepishly, "About 50,000 yuan!" "50,000?" I was stunned. I said, "With 50,000 in sales, you support 3 salespeople, two vehicles, a storefront, and a warehouse, plus other expenses. Can you make a profit?" C said, "Our costs are low here, and with the high profit from these miscellaneous brands, we barely break even."

Then C continued to complain—the market is getting harder, competition pressure is increasing, terminals are getting stronger, fewer people come to the wholesale market to pick up goods, operating costs are rising, and profitable products are decreasing... The company's minimum order of 50,000 yuan is too high; can it be lower?

I told C, "It's not that the product is bad, but that you haven't done well. Across the mountain, in H County, a small county town in Anhui with a population of several hundred thousand, monthly sales are over 600,000. When the market isn't doing well, don't just look for reasons; find methods! Last year, Anhui sold over 200 million, while Jiangxi only sold a few million. The main reason is that the company didn't pay attention to the Jiangxi market and didn't focus on development, but you also need to find reasons within yourselves. Starting this year, the Jiangxi market is officially launched—this is a great opportunity!"

C said, "I dream of doing well with your product, but I can't find the right methods! I envy distributors in other places making money! When your salespeople come, they just talk nonsense. The market plans from the company don't apply to my market; they're made behind closed doors. Market problems aren't solved, and they only ask for sales."

I looked at my watch; I had been talking with C for nearly two hours, and it was past noon. C didn't seem to intend to offer lunch, and I had just arrived in LP after a 20-hour train ride the day before, so my stomach was protesting.

I also realized that continuing the conversation wouldn't yield much valuable information, so I took my leave. C insincerely invited me to stay for lunch, but I politely declined and returned to the hotel.

Back at the hotel, I sorted out the morning's conversation with C:

Analyze the problems

  1. C saw the success of our products in most markets nationwide and believed our products had high development potential locally. He still had high expectations for our products.
  2. Due to previous cooperation issues, C was dissatisfied with the company and distrusted factory salespeople, showing resistance.
  3. C also wanted to do the market well, but due to his own business thinking and strength limitations, plus some objective reasons, the market hadn't been done well, and his confidence was severely damaged.
  4. C's capital, logistics, personnel, and channels could temporarily meet market development requirements, especially his salespeople, who were quite capable, but lacked proper guidance.

Find countermeasures

  1. Under such market conditions, replacing the distributor is difficult. Even if we found a powerful distributor, they might not be willing to push our products. The current strategy is to support C. If he really is a hopeless case, then we can look for alternatives while continuing.
  2. First, establish authority in front of C, make him believe in my market operation ability, and make him understand that I came to help him do the market, not to take a cursory look.
  3. Help C sort out previous legacy issues, make commitments for things the company didn't do well before, set deadlines for resolution, and draw a line under the past, forbidding mention of old issues, to eliminate C's dissatisfaction with the company.
  4. Clearly tell C that the Jiangxi market is now officially developed, and advertising and basic market investment plans have been approved. The market prospects are still bright. If C wants to continue and make money, he must correct his attitude and change his thinking.
  5. Rebuild C's confidence in the company and mobilize his enthusiasm.
  6. Personally visit the market to identify problems and formulate a market development plan.

No investigation, no right to speak After lunch, I went to the city to visit stores and conduct a preliminary market survey. I found the following market problems:

  1. C, focusing on short-term interests, often resold products from other merchants, distributed some "three-no" products (no production date, no quality certificate, no manufacturer), and had poor after-sales service, resulting in a bad reputation among terminals.
  2. "Left-leaning" thinking was serious. Competitors entered the market early and had absolute advantages in KA. With our weak market foundation, it was unwise to confront competitors head-on in KA.
  3. C's own manpower, financial resources, and materials were very limited. All expenses were invested in KA, while the circulation channel lacked policy support, so progress was slow. Coupled with competitors' heavy investment in terminal displays and ordering meetings, business became even more passive.
  4. Key channels such as schools, internet cafes, restaurants, and KTV were neglected.
  5. The township market, which has huge sales potential and weaker competitor defense, had not been developed.
  6. In a newly opened KA store, I found a batch of products with tampered production dates, and the packaging was dirty, as if they had been pulled from a garbage heap. This issue made me very angry; this is how markets get killed.

Use the issue to establish authority—correct attitude Back at the distributor's place, I put the "illegal products" on C's desk and asked what was going on. C casually said, "There are about a dozen cases of expired goods in stock. It's a pity to throw them away, and the factory doesn't care, so I thought of a way."

I patiently explained the various harms of this practice, but he showed no reaction. His indifferent attitude made me lose patience with lecturing, so I directly said, "If this isn't resolved immediately, you won't be our distributor anymore." I then reported to the company leaders and called the marketing department to stop shipping to him.

My decisive action was completely unexpected for C. This time, C was scared (after all, his business relied on our brand for prestige, and he hoped to get rich with our products). Only then did C realize the seriousness of the problem. He proactively admitted his mistake and, as I required, wrote a guarantee letter—promising no similar issues in the future, obeying the management of factory personnel, strictly implementing all company market management regulations, etc. He signed and stamped it, then bought back all the "illegal products" at retail price from the supermarket and destroyed them in front of me.

Backward distributors most need intellectual support from the manufacturer—change their thinking After resolving the "illegal products" issue, I offered several suggestions for his market development and business thinking:

  1. Give up all miscellaneous brands and focus solely on doing our product well.
  2. Temporarily suspend KA investment. With limited funds and a strong enemy, we cannot fight a war of attrition 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 the development of the township market to a strategic level—leverage price advantages, encircle the cities from the countryside, and quickly capture the rural market.

In short, put all eggs in one basket, concentrate superior forces, start from the competitor's weak points, and develop gradually—that is our path to victory.

Before I finished, C slapped his thigh and said, "Ah, we think alike! I've been considering this too, but I was too close to see clearly."

"I haven't been in business long, and I don't know much about corporate culture and market models. I dream every day of doing the market well, but I don't know how. I heard you used to be a distributor too. This time, you must help me 'brainwash' me, instill more successful experiences and advanced methods from other markets."

"I'll listen to the company. As long as I can make money, I'll execute whatever you say without discount. I have complaints about everyone, but not about money!"

C looked at me with expectation. So I discussed some good methods from surrounding markets and the tortuous growth stories of excellent markets with C. Watching C go from confusion to a glimmer of understanding to confidence, I knew today's communication had achieved its effect.

Ideas themselves don't create value; the key lies in implementation. Determine plans, set standards, execute efficiently, and manage by objectives—details determine success or failure.

The next day, I brought the designed plan to C. C said only one sentence: "I'll do whatever you say—as long as we can do the market well and make money."

I. The execution level of frontline sales staff determines the quality of market work. The key to breaking through the market is building a passionate and capable sales team.

  1. Team motivation: Gather the distributor and salespeople to discuss current market development and internal management issues. We absorbed many suggestions from salespeople, affirmed their achievements, raised their salaries and commissions, and I decided to allocate some market funds as rewards for outstanding performance. Finally, I talked about the company's strong strength and the upcoming vigorous development of the local market, aiming to become the number one brand. After the meeting, the salespeople's "listless" state and lazy expressions vanished, and they were eager to try.

Having enthusiasm without goals is blind; having goals without methods is dangerous.

  1. Team training: Provided training on product knowledge, product distribution skills, display standards, and customer relationship maintenance. Sharpen the spear before battle—polish the "gun" first!

  2. Lead by example: After a day of training, the salespeople seemed to understand but not fully. I knew there was a gap between "theory" and "practice," and "standards" and "examples" are the best ways to achieve "unity of knowledge and action." So I personally led several salespeople to distribute products, organize shelves, adjust displays, do terminal merchandising, and negotiate with buyers. I told them that success cannot be copied, but successful experiences and methods need to be referenced. Everyone should develop their own sales skills based on the characteristics of the target, product selling points, and their own strengths.

  3. Follow-up guidance: For newly trained salespeople, it's hard to digest training content immediately, so follow-up guidance is crucial—correct mistakes and reinforce standards.

  4. Practical exercise: You can't grow towering trees in a greenhouse, nor can you cultivate excellent salespeople in three days. Sales is a highly practical job, and sales skills can only be improved through actual combat.

II. Successful regional market development requires not only an excellent sales team but also scientific market strategy guidance and feasible promotion plans.

  1. Segment sales channels: KA hypermarkets, 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 second-tier distributors, township direct-supply supermarkets, rural small shops, 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. Based on market surveys and competitive analysis, C and I determined the following market breakthrough strategies: A. Target key supermarkets in townships with lower competitive pressure, invest heavily, create model stores, and attract powerful township second-tier distributors. B. Quickly capture the township market, establish and improve township second-tier channels. In some townships, leverage the advantage of higher product profits than competitors and the low loyalty of second-tier distributors to poach competitors' customers and achieve deep distribution. C. Establish incentive sales systems to encourage second-tier distributors to quickly enter the rural market, forming a pattern of encircling cities from the countryside. D. In urban areas, fight hard battles in channels with low entry barriers, low investment, and high returns, such as bus stations, campuses, internet cafes, beverages, breakfast, and fast food. E. Select some C/D-class retail stores with good business and high sales to purchase special displays, make light boxes, store signs, etc., focus on building community model stores, and gradually increase the distribution rate and survival rate of small stores. Ensure cash on delivery, and that distribution outlets' displays are superior to competitors, with POP and other terminal promotional tools posted. Visit according to routes and cycles, provide good service, and maintain customer relationships. F. Temporarily suspend investment in KA and hotels, put all eggs in one basket, and after achieving phased victories in other channels, with expense support and a stronger sales team, then compete with competitors in KA.

After determining the overall strategy, C and I then formulated detailed promotion plans, execution plans, and assessment methods based on the situation.

Motivate the distributor After we finalized all the plans, when we calculated the costs, the distributor's face turned into a "bitter gourd"! For such a large "system engineering," the manufacturer's expenses were a drop in the bucket, and the distributor didn't have enough working capital to stock up, hire people, promote, or extend credit to terminals.

At this point, I didn't say anything—even a clever housewife can't cook without rice!

C and his wife went into the back room and argued for a long time. After a while, C came out with a red face, hesitated, gritted his teeth, slapped the table, and said, "I'm going all out! 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'll follow you!"

I said, "We've already analyzed these issues! Don't ask me again. The key now is: do you believe in yourself? Dare to challenge yourself? Want to change your current business situation?" The distributor no longer hesitated and squeezed out two words: "Let's fight." I said, "Put yourself in a desperate situation to survive; this battle must be won!"

At the end of the month, I returned to the company, and the assistant handed me the monthly sales report. When I saw LP's sales, I smiled—150,000 yuan, a 650% increase from the previous month, higher than the total sales of the past half year.

I immediately congratulated C and reminded him that this sales volume was just moving goods from his warehouse to terminal shelves, not real sales! C also said, "Yes! Many places are paying the first payment, and the second order is settled together. I'm under a lot of financial pressure now!" I said, "We must strike while the iron is hot. Promotions must keep up. Success or failure depends on this one move."

Two months later, I saw the sales report: 150,000/130,000/180,000—LP's market foundation work was showing results.

Reflections on distributor management

  1. Reflecting on my distributor management experience, doing distributor management well is actually just one sentence—attitude determines everything, thinking determines the way out, and details determine success or failure.

That is, use corporate culture to arm distributors' thinking, correct their attitudes, assist them in market planning and straighten out work ideas, help them improve management, train their sales teams, use sales profits and policies to motivate them to proactively do the market, supervise their implementation of company market policies and promotion plans, and use company market management regulations to manage and constrain them.

For distributors, an excellent regional manager is both a strategist and a teacher!

  1. To do distributor management well, don't always talk about "management"! In many cases, distributors have more social experience, age, and personal achievements than us, and they care about face! At this time, we can change the wording: "communication," "cooperation," and "win-win."

  2. Remind all regional managers: Don't just measure distributors by payment collection. First, reflect on whether your own work is done well. If market work is done well, payment will come to you; if not, you go after payment!

  3. Don't always stare at the "little money" in the distributor's pocket. Look further—distributors, second-tier distributors, terminal customers. Only when consumers are willing to pay at the terminal will your payment be guaranteed!

  4. Do a good job of "Three Represents" and "One Unity": Represent the company's interests, complete the sales tasks and market indicators assigned by the company; represent the distributor's interests, help the distributor make money; represent the interests of yourself and the salespeople, exceed sales targets, and let salespeople make money. Unify the interests and resources of the three parties into specific market work.

  5. The company is the "Party," the regional manager is the "Party representative," the distributor is the "masses," and market competition is the "revolutionary struggle." To win the "revolutionary struggle" and achieve "communism," we must "come from the masses, go to the masses," "represent the fundamental interests of the broadest masses," and let the "masses" live a good life!

The method to do the market well and complete sales tasks—help distributors make money! The method to make distributors cooperate—help distributors make money! The purpose of managing distributors—help distributors make money!

Reply with the following keywords to categorize and read related professional articles: Sales Supervisor, Second-tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Dealer Game, Product Slow-moving, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Motivation, Channel Promotion, Sales Misconceptions, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing Orders, Market Visit Inspection, Baijiu, Beer, Sales Increase, Agency Products, Cross-dumping, KA, Terminal Merchandising, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, Sales Novice, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Recruitment, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Stock Pressure, Holidays, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Debriefing, Work Report.