These are the ten types of manufacturers that distributors fear most. Have you encountered them?
Big manufacturers bullying distributors We all know that when a manufacturer is small, they pat their chests and promise distributors they will make money, treating them like brothers and sisters, calling them 'big brother' and 'big sister' to help sell products. But once the factory's business improves and grows, they become arrogant! Forget about brotherhood—how many bosses still keep in touch with distributors? Some large manufacturers even demand annual growth rates, prepayments, deposits, and impose strict conditions for expense verification. This is typical oppression! Typical unequal terms! Brands are built by the collective efforts of distributors nationwide, so why act superior? Water can carry a boat but also overturn it—remember that! As for new product distribution and promotions, every product competes for market share from rivals. If you don't offer more aggressive incentives than competitors, how can you overturn established brands? In China, first-mover advantage dominates; Master Kong's long-standing dominance over Uni-President is a classic example. Distributors show you the way, but if you're unwilling to follow, you can leave!
Making distributors fight the entire manufacturer brand alone We often encounter manufacturers who think that finding a large distributor is like buying insurance. They ship goods and then disappear, expecting distributors to be miracle workers who will surely sell well. They don't realize that other manufacturers help their distributors, which is why they have current market positions! Any market performance is the result of good cooperation between manufacturers and distributors! Haven't you seen how competitors support their distributors? The market is now oversupplied, and every industry is fiercely competitive. When competitors offer buy-one-get-one-free deals, you give distributors a 20+1 deal and think it's huge support. Distributors aren't gods; they can't afford to lose money to fight competitors. Worse, some large manufacturers have too many management layers; by the time reports reach leadership, the product is nearly dead. Distributors need partners who can provide timely support to fight competitors and boost sales.
Opportunistic and chaotic management Everyone has felt that in recent years, growth in both retail and wholesale has slowed significantly. Under such market conditions, sales targets are enormous, and distributors struggle to grow sales. At this time, everyone wants growth, and rising labor costs force distributors to develop, needing more sincere cooperation and strong support from manufacturers (partners) to weather the storm! But we often see unscrupulous manufacturers and their salespeople, under pressure to meet sales targets, blame distributors entirely for declining sales, making them scapegoats! To complete their own tasks, they act opportunistically, developing new accounts (just to push inventory) without considering long-term market development. They live month to month, and maybe after two months they 'communicate' with leaders to transfer elsewhere, leaving the market ruined, causing even major brands to struggle to find good customers.
Harsh expense verification Some manufacturers play word games with market expenses, causing many distributors to be unable to get timely and full reimbursement. Worse, some salespeople deceive distributors about promotional expenses, withholding approvals or not following leadership's instructions, forcing distributors to bleed a little to feel satisfied. Wanting to sell more is fine, but you need proper methods! How long will you keep deceiving distributors? Some manufacturer personnel even embezzle distributor expenses. The Distributors' Home platform often receives complaints about expenses not being reimbursed for two years, leading to breakdowns. Additionally, manufacturers attach numerous harsh conditions to expense approvals. Want expenses? Not so easy! Without distributors' 'gratitude,' you won't get the money!
Manufacturers transferring all risks to distributors 1. Some unscrupulous manufacturers hold 'grand' new product launches just to raise funds, deceiving distributors into paying prepayments but delaying shipments. At that time, they might not even have bought the machines! They operate entirely on distributors' money. Such brands are common in Fujian; 'love to fight, will win'—that's about distributors, not them. One day, distributors might lose everything. I know of a brand where an agent in Shijiazhuang paid 1 million yuan and still hadn't received all goods after a year. 2. Current manufacturer-distributor transactions require payment before shipment, so distributors can't hold anything over manufacturers. Whether it's product quality issues or expense verification, distributors bear the risk. The Distributors' Home often receives complaints: some manufacturers promise to cover store entry fees during recruitment, asking distributors to pay upfront and get reimbursed next month, but if sales are poor, they say reimbursement only after the next order, or even require proportional reimbursement. Isn't that deception? Many distributors now demand net pricing, only entering supermarkets after trial sales succeed, and only operating if profitable—all forced by unscrupulous manufacturers! 3. Some unscrupulous manufacturers, relying on brand recognition, require distributors to pay deposits to prevent cross-region sales. When distributors stop working, they don't refund promptly, or never refund at all! Worse, deposits and prepaid expenses can reach hundreds of thousands or millions, and they won't even consider refunding for two years. How much profit is lost! Not only is your money used for free, but some even lose everything.
Unreasonable pricing and sales policies Many manufacturers set factory prices high, leaving distributors with very thin margins. They call this 'controlling distributors,' meaning distributors have no ability to promote independently and must rely entirely on the manufacturer. Such distributors are just 'porters,' with sales depending on luck. If the manufacturer's promotion is strong, it's okay; if not, failing to meet targets is non-negotiable. But why do such distributors even have sales targets? Who should they be set for? Probably for your regional managers! Distributors aren't earning your salary!
Distributors as 'guinea pigs' for new products Some manufacturers treat distributors as 'guinea pigs' for new product launches. Every new product is forced onto distributors in large quantities; you can't refuse. If you have money in your account, they automatically ship it. If the new product sells well, you make a profit! If not, sorry, you're on your own. The company has stopped production, so they can't help. Which company's products are all bestsellers? According to Distributors' Home statistics, only about 20% of new products survive, meaning distributors are guinea pigs 80% of the time. That's also a cost for distributors!
Not respecting distributors' core interests Some manufacturer salespeople, when setting sales policies, deceive distributors into giving up immediate interests for long-term vision. Yes, you don't invest, don't pay salaries, and if things go wrong, you can leave—but what about distributors? Distributors usually aren't very strong financially; they're businesspeople struggling forward. Monthly expenses plus salaries create huge pressure. The brand might not even be established before distributors go bankrupt. It's like manufacturer salespeople: if they don't get paid this month, they consider quitting next month!
Unreasonable sales target growth Every businessperson wants to grow their business, unless they're fools! If the manufacturer's business grows and the distributor's business grows, that's great! But some manufacturers blindly set extremely high sales targets without considering how to achieve them—whether through more market support, developing innovative new products, or increasing distributor profits. Targets aren't set for distributors alone; they're for both parties! Once distributors see no hope, they give up, and everyone loses. It's year-end again; have you thought about next year's targets?
Blindly developing multiple customers in one market, leaving distributors in tears Blindly developing multiple customers in a regional market causes severe network overlap. No one wants to give up their customers, leading to cross-region sales and price undercutting. Some manufacturers, fearing distributors will make high profits with low sales, deliberately create conflicts in regional markets, turning a blind eye to cross-region sales or even encouraging it, without considering distributors' reasonable profits. As long as their products are everywhere, they don't care if distributors make money!
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