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Distributors are most concerned with profit; every distributor thinks about how to sustain and grow their business profitably. However, reality is harsh, and most distributors face the challenge of stagnant sales growth.

Currently, distributors' sales growth faces several thresholds: the first is 10 million yuan, which some distributors struggle to break through for years; then 30 million, 50 million, and finally 100 million. Many distributors spend their entire careers without surpassing 100 million. Why is growth slow and hard to break through? Why do many never reach 100 million?

“Management loopholes, poor team execution, lack of good brands, bad sales models.” Perhaps every distributor has a different answer. When we don't do well, we must reflect: Why am I not doing well? What factors are hindering me? Below, I will analyze the causes from four points:

Human Factors: The Ceiling of Bosses and Executives Many distributors fail to grow or strengthen, not because of products, teams, or market expansion, but because of the boss. The boss determines the company's character and scale; the boss is like a ceiling, and the height of that ceiling determines the size of your business and the level of your employees. The boss's learning and change speed determines the company's growth scale. If sales haven't reached 100 million, the boss is definitely the problem.

Another important reason is the ceiling of the executive team. In China, two phenomena are prominent in business:

First, using “family soldiers.” For bosses, family members have three advantages: they are trustworthy, less likely to leave, and cost less. Currently, half of distributors still use family management systems, which is detrimental to future growth.

Second, “old faces.” In many distributors' core management teams, there are only familiar faces; no new people join for 3-5 years. Interestingly, when problems arise, these old faces often point out problems, while new people discover innovative solutions. Old faces always find problems, making you anxious, and they spread negativity. New people, on the other hand, strive to prove themselves by finding methods and opportunities to drive sales growth. Therefore, bosses should introduce more talent, avoid absolute family management, and let fresh blood become the driving force for company development.

Product Factors: How to Pick Gold from Old Products? “People are the same, but the products they represent differ; ultimately, products determine the person.” “Choice is greater than effort; choose carefully, not just work hard after random choices.” Distributors should remember these two sayings. All successful distributors have their core weapon: good products.

So, how to select good products and pick gold from many? I'll introduce a method called the “feature product determination method.” We know that all products selling well in the market follow two rules: “first” and “unique.” “First” means brand; the first brand in each category usually has the largest sales. Almost all distributors with sales over 100 million have first-tier brands. Brands are the distributor's weapon; the weapon determines your future. In a county-level city in Henan, a distributor of Wahaha achieved annual sales of 220 million yuan, demonstrating the advantage of big brands.

“Unique” means the product is not a brand but has distinctive features that attract consumers. Every consumer has consumption beliefs, which come from “first” and “unique.” When selecting products, distributors must ask themselves two questions: “Does the product have unique features?” and “Can it make consumers remember you among many?” I summarize product features into four characteristics: first, uniqueness of raw materials and function; second, uniqueness of core technology; third, distinct packaging; fourth, distinct product shape. To stand out and be remembered and accepted by consumers, a product must possess at least one of these. Therefore, most manufacturers should also upgrade and innovate in these areas.

When selecting feature products, distributors often fall into several misconceptions:

The first misconception is “fake selling points.” A tractor with a BMW logo is still a tractor. There was a “walnut milk” drink on the market with the slogan “Smart choice, wise choice,” retailing at 18 yuan per box of 20 cans. Given that walnuts cost about 30 yuan per jin, this drink contained almost no walnut. Despite the “smart, wise” slogan, the product lacked this selling point, so the brand never succeeded.

The second misconception is “the selling point doesn't connect with the product.” No matter how well the product is promoted, if the slogan doesn't make consumers think of the product, it's a failure. In most cases, consumers buy not the product itself but the selling point and feeling.

The third misconception is “copying first-tier brands' selling points.” Many companies make “old jar pickled cabbage noodles,” all claiming authentic and tangy pickled cabbage. But since “Uni-President” has established its brand, imitators find it hard to break through.

The fourth misconception is “quality doesn't support the selling point.” There is almost nothing of good quality and cheap. You can't have a BMW brand with a QQ price; it's nearly impossible.

Market Capacity and Competitive Landscape: Category Space Determines Development Scale What is market capacity? I once met a distributor in Henan who started in 2006, representing only two small brands without much success. This year, he took on a well-known brand of vermicelli. In the first month, he shipped a truckload and quickly exceeded 100,000 yuan. Due to brand influence, the product was quickly accepted. He confidently said, “At this rate, I'll break 1 million in a year.” But in the following months, product turnover slowed, and sales became difficult. As we know, the vermicelli category is very small. When choosing products, distributors must consider whether to choose a large or small category. In recent years, you'll notice that many distributors of functional drinks, water, and milk achieve sales of tens of millions. Thus, category space determines your market size.

The second point is competitive landscape. As mentioned, small market capacity limits sales. But large capacity doesn't guarantee sales either. Take plant protein drinks: this category has been hot recently, but competition is fierce. Fewer companies survive and grow; most face severe growth bottlenecks due to imitation. Also, consider whether the category aligns with current trends. For example, carbonated drinks: Coca-Cola and Pepsi are large categories, but growth has slowed. Taking on carbonated drinks still faces difficult sales growth.

If a category is declining, individual efforts can't change it. But there are exceptions: the whole category declines while one product rises. For instance, instant noodles: the industry has slowed in recent years, with consumers labeling them junk food. But one product has developed exceptionally well: Uni-President's old jar pickled cabbage noodles. This product introduced a new major flavor, deeply influencing the competitive landscape, with sales reaching 5.7 billion yuan last year.

Mechanism Factors: The More Employees Believe in You, the More Successful You Are A distributor once told me, “In my company, there are 8 employees, but the 8 of them together can't do as well as I do alone.” The reason is a problem with the company's mechanism. Many distributors complain daily that business is stagnant, employees lack motivation, and labor costs rise while output falls.

Here's an interesting example: In Journey to the West, Sun Wukong wreaked havoc in heaven and defeated all the heavenly soldiers. But during the pilgrimage, he faced great difficulties defeating many demons and often sought help from heaven. Strangely, these demons were pets of the heavenly soldiers, and the gods had to come down to subdue them. Think about it: Sun Wukong could defeat gods but not demons, and gods eventually subdued demons. Why?

The heavenly soldiers are like employees working for the Jade Emperor, while the demons are like entrepreneurs working for themselves. Naturally, they differ. In distributors that don't grow, employees think they work for the boss. After ten years of struggle, the boss drives a BMW and lives in a villa, while employees still earn a base salary of 2,000 yuan, questioning if it's worth it.

Conversely, some distributors make employees feel they are starting their own business. For example, in Xinxiang, Henan, a distributor representing first-tier brands like Yili and JDB achieved sales of 120 million yuan last year. As the business grew, he made significant changes: he opened his books monthly, including purchase prices, product gross margins, and profits, and divided the business into departments with employee shareholding. Profits were distributed proportionally to employees. Now, his company is no longer his sole concern; employees treat it as their own, and sales growth has accelerated. Thus, good mechanisms create good employees and ultimately build good enterprises.

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