Sales volume = terminal count * turnover rate * product variety. The more terminals covered, the faster individual product turnover, and the richer the product mix, the easier it is to achieve terminal sell-through. However, things are often easier said than done. Currently, difficult sell-through and the challenge of moving products are headaches for companies and distributors. Without product sales, there's naturally no profit to speak of. To achieve sell-through, the market must be meticulously cultivated. Doing market work means getting people active and terminals lively; otherwise, it's just warehousing. Products piled up in warehouses naturally won't sell. How does sales volume come about? The sell-through effect of covering one terminal versus ten thousand terminal stores is bound to be vastly different. However, with terminal coverage, distributors still need to control terminals and accurately measure product turnover rates. After solving terminal control and sell-through rates, the next step is to consider advancing multiple varieties and items—a gradual process. So, what factors actually influence terminal sell-through? Three Major Factors Affecting Terminal Sell-Through The three key factors affecting sell-through are occupancy rate, control rate, and visit rate. Occupancy rate is usually calculated by region: a brand's occupancy rate is the ratio of its sales to the regional category's market capacity. The higher the occupancy and control rates, the easier sell-through becomes. Among these three, the visit rate is the most important. In the hot summer, even salespeople hope to work in a cool and comfortable environment. But after product 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, and other visual elements, curbing product sell-through. Without these vivid displays, achieving sell-through becomes even harder. Besides visiting customers and maintaining relationships in person, using new media tools to stay in touch and maintain goodwill is also necessary. Fully implementing these three factors is not easy, but if all reach above 80%, the sell-through 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 sell-through difficulties, distributors often hear such complaints from their salespeople. This is exactly when strong push from salespeople is needed, adhering to four principles. Four Principles: Persist for Sell-Through The primary principle of terminal sell-through is the "point-line-plane" principle. First, do well with one terminal store or image store, then expand to a street, radiate to a region, and finally build a national brand. Second is the 80/20 principle. We often think 20% of outlets generate sales, but in reality, large supermarkets emphasize pull, while mom-and-pop stores emphasize push. These 20% of outlets mainly serve to radiate influence over the trading area, affecting 80% of sales and profits. Third is the matching principle: channel layout should match product positioning. High-end products should appear in upscale venues to highlight their status. Evergrande Mineral Water's sell-through problems arose from distributing through circulation and convenience store channels. Additionally, Kunlun Mountain using JDB's herbal tea channel also compromised its "high-end identity." Finally, the "mushroom strategy" principle: all strong brands have followed this—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 sell-through: first do well in their strong coverage areas, then gradually expand business scope. Five Countermeasures to Solve Sell-Through Difficulties Many factors affect product sell-through, and distributors need to address issues like terminal control, terminal management, soon-to-expire products, and distribution timing. Countermeasure 1: Terminal Evolution, Push First. A distributor's control over terminals is a gradual evolution. Convert blank stores where products haven't entered into target stores where products are wanted. Visit terminal owners frequently to build relationships and maintain goodwill. The more familiar you are with the owner, the stronger the relationship, and the better for product turnover. At this point, target stores become relationship stores, also called loyal stores. Simply placing products in terminals doesn't guarantee sell-through; sell-through often occurs 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 sell-through. After distribution, consider how to occupy the terminal owner's inventory, managing your product's inventory ratio to ensure backup support for sell-through. Once inventory is in place, think about how to drive sell-through. At this point, negotiate with the owner to make your product the main push, offering rewards like TVs or microphones based on monthly sales to ensure terminal push. As the relationship between distributor and terminal owner deepens and you occupy significant warehouse space and prime display positions, leverage that push to turn the terminal into a dedicated store, and sell-through will be a breeze. 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 metrics. Normal visit frequency should be once a day or once every three days; prolonged absence from terminals can easily lead to switching allegiances. Visit standards require terminal visualization 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 a cooperation agreement. During this process, a terminal inspection system must be established. Distributors can use WeChat check-ins and GPS positioning to confirm whether salespeople entered stores, what they did, the standard effect of visualization, and their daily goals. This system should be tied to salespeople's compensation—not just base salary plus commission, but multi-dimensional assessment criteria. For example, reward for opening new terminal stores, penalize for losing terminals; reward for meeting visualization standards, penalize for failing. These require systematic management; simply assessing employees by sales volume may bring quick results but also quick failure. Countermeasure 3: Properly Handle Soon-to-Expire Products. Managing soon-to-expire products is also important. Expired products are neither the manufacturer's fault nor due to poor sell-through, 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 Optimal Distribution Timing. Traditionally, distributors often distribute during the off-season, which indeed captures the peak sales node. However, off-season distribution requires withstanding the pressure of poor sell-through, preparing for stock transfers, exchanges, and related services. Therefore, distribution should differentiate between peak and off-seasons; distributing in the middle period between them can both prepare sufficient inventory for peak-season marketing and avoid timing delays. Countermeasure 5: The 30/60 Rule for Distribution Rate. Survival line = 30%, brand line = 60%. If a distributor's distribution and control rates reach 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—such as cities, counties, and towns—does sell-through become smoother, and it also builds the distributor's and company's reputation. Credit sales are also an important factor affecting sell-through. Credit sales tie up a distributor's capital, preventing proper relationship maintenance and reducing terminal push. Additionally, product placement, display, and product mix affect the terminal owner's enthusiasm for recommendation. Placing products at the entrance, in visible spots, or where consumers can easily reach them, and bundling multiple items, facilitates sell-through. Implementing effective new product listing scripts and building the distributor's influence at terminals are also key factors. Six Key Points to Remember for Terminal Sell-Through What is the most objective and effective way to assess terminal sell-through? Simply put, there are six key points. First, look at distribution rate: besides understanding your product's 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 visualization: have salespeople record elements that create a vivid product image and use a visualization scoring sheet to assess employees. Third, look at shelf age: check production dates, whether FIFO 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 customer relationships: whether terminal owners know the salesperson's name and visit cycle, whether there are complaints or reports, and which stage the relationship is at—no conversation, formal talk, normal communication, or open dialogue. 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 product stagnation are what distributors should focus on. Sell-through is a system and hard work; there are no shortcuts or standard answers. After products are distributed, continuous follow-up, maintenance, and tracking are needed to sustain sell-through. -END- Selected Content Click the title below to read directly: [Line Sales Rep Customer Relationship Management Practical Guide (with 228-page grassroots sales rep full PPT training tutorial download)]