Although manufacturers and distributors are partners, they each have their own interests. As they say, in business, one speaks for business. Some insincere words from merchants still require us to keep our eyes open, see through the surface to the essence, and understand their true purposes. Knowing yourself and your enemy leads to victory. For newly recruited sales representatives, who often blindly trust and follow others, the following content will be helpful.
"Selling your products doesn't make money." No matter what they sell, any businessman will say this. There are two reasons why distributors continue to sell your products: No profit but volume, or no volume but profit. The first situation: often products with high market awareness and large sales volume, but these products also have high price transparency, resulting in no profit or minimal profit for the merchant. Why are they still willing to sell them? Mainly because these products bring foot traffic and business opportunities, generating profit through driving sales of other products. The second situation: often products that have just entered the market with low awareness. Although sales volume is low, the merchant can control market prices through exclusive distribution and still obtain profit. In this era of thin margins, can you still find a product with huge profits and minimal investment?
"Make me the exclusive distributor; tell me the sales target, and I'll take it all." If the merchant fails to meet the annual target, he will only say sorry, and the market risk will ultimately be borne by the manufacturer. If you say yes, but require the merchant to deposit a sales guarantee 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 he is a generous person) Anyone can talk about big principles; the most important thing is to listen to words and observe actions. In fact, what merchants value most is profit, above all else, just expressed in different ways. 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 he also asks for exclusive distribution of your Brand B, it is entirely possible for the following purpose: To prevent competitors from obtaining the distribution rights of Brand B and competing with his Brand A. In fact, he will not actively promote Brand B. Sometimes, when the manufacturer pushes hard, he will only 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 just a drop in the bucket." (He cannot afford to lose) Wrong. Both merchants and manufacturers, regardless of size, have profit as their ultimate goal. In business activities, both parties have their own interests. It is our sales personnel who lack a clear understanding of this, at least subconsciously agreeing with the customer's viewpoint, and sometimes making unprincipled concessions to customers to achieve personal sales targets.
"Product A has heavy advertising, gives us a competitive price, and offers credit support." Don't believe that Product A really gives him so much support. Perhaps he says the same thing to the manufacturer of Product A. Distributors often "ignore" the work you have already done, with only one purpose: to obtain more favorable conditions from the manufacturer.
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