---
title: "“Tricked” Without Negotiation: An Overview of Manufacturers' “Trickery”"
description: "In casual chats with distributors, one often hears that business is getting harder. The days when distributors could act like “bosses” in front of manufacturers are long gone. When selecting brands and products, they must keep their eyes wide open, or they may end up wasting time and money, like “losing both the wife and the army.” Nevertheless, many distributors, who became wealthy in the 1980s and 1990s through courage and opportunity, still cling to past glories in the 21st century. When dealing with manufacturers armed with new ideas, they often react passively, and some even fall into traps set by unscrupulous manufacturers (especially in the liquor industry, where new brands and tricksters abound each year), ending up like ST stocks with little hope of recovery. To help more distributors avoid these pitfalls, the author analyzes various manufacturers' tricks for reference."
author: "唐江华"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-10-06"
language: "en"
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# “Tricked” Without Negotiation: An Overview of Manufacturers' “Trickery”

> In casual chats with distributors, one often hears that business is getting harder. The days when distributors could act like “bosses” in front of manufacturers are long gone. When selecting brands and products, they must keep their eyes wide open, or they may end up wasting time and money, like “losing both the wife and the army.” Nevertheless, many distributors, who became wealthy in the 1980s and 1990s through courage and opportunity, still cling to past glories in the 21st century. When dealing with manufacturers armed with new ideas, they often react passively, and some even fall into traps set by unscrupulous manufacturers (especially in the liquor industry, where new brands and tricksters abound each year), ending up like ST stocks with little hope of recovery. To help more distributors avoid these pitfalls, the author analyzes various manufacturers' tricks for reference.

In casual chats with distributors, one often hears that business is getting harder. The days when distributors could act like “bosses” in front of manufacturers are long gone. When selecting brands and products, they must keep their eyes wide open, or they may end up wasting time and money, like “losing both the wife and the army.” Nevertheless, many distributors, who became wealthy in the 1980s and 1990s through courage and opportunity, still cling to past glories in the 21st century. When dealing with manufacturers armed with new ideas, they often react passively, and some even fall into traps set by unscrupulous manufacturers (especially in the liquor industry, where new brands and tricksters abound each year), ending up like ST stocks with little hope of recovery. To help more distributors avoid these pitfalls, the author analyzes various manufacturers' tricks for reference.

1. **The Sky-Scattering Net Trap**: Many well-known or obscure brands launch global or national recruitment, boasting that distributors in model markets have amassed millions in wealth within three months or a year. In reality, a quick inquiry reveals that the recruiting company's annual turnover may be less than a few million. There is a model that can achieve this: the manufacturer selects a national general agent, say in Beijing, who, after helping the manufacturer succeed in the Beijing market, jointly recruits distributors nationwide. At this point, the general agent, regardless of whether other markets succeed or only slightly succeed, becomes the top of the wealth pyramid. Can you replicate such a model market? Here, you are merely a small fish in the manufacturer's net.

2. **The Mirage Trap of High Rebates and Comprehensive Advertising Support**: Many such offers are castles in the air. Today's manufacturers are extremely shrewd; they demand cash on delivery or payment before shipment (because social trust is poor, especially in recent years), as they must protect themselves from risk. After the distributor pays the full amount, advertising, promotion, and personnel costs are all borne by the distributor. If the market succeeds according to the manufacturer's wishful thinking, these expenses may be reimbursed; but if the market fails to launch, these funds are likely written off, and the manufacturer suffers no loss regardless of your losses.

3. **The Underdog Turnaround Trap of Shifting Flowers and Connecting Trees**: Some manufacturers, lacking local reputation to attract suitable distributors, resort to clever tactics. One distributor told me this story: an obscure Guizhou liquor brand failed to find distributors in their market. In August or September, the manufacturer sent two people and hired local staff to start distribution. A month later, they approached the same distributors with more favorable terms, with the manufacturer bearing all initial distribution risks and continuing to assist in market development. Seeing this tangible effort, many distributors were tempted and signed contracts, paying for shipments. The rest is predictable: the manufacturer withdrew cleanly (the initial distribution goods were already in their budget), while the distributors who took over were left stunned, with the market never truly launching and costs unlikely to be recovered.

4. **The Chain Trap of Free Vehicles and Promotions**: In the past year or two, liquor manufacturers often offered free vehicles and promotions during recruitment. For a payment of 100,000 yuan, they'd send 120,000 yuan worth of goods, plus a delivery van, and promise a certain number of promoters and sales staff, along with over 30% advertising investment for new markets. Any distributor could see that the liquor was essentially free. But remember, there's no such thing as a free lunch. In today's liquor market, which brand can quickly launch a market with just 100,000 yuan? Moreover, with such large operational margins, even if you succeed, you'll be flooded by parallel imports from other markets. A sub-brand of a famous listed liquor company adopted this model in late 2001, and within a year, it vanished from the market.

5. **The Fishing Trap of Recruitment Advertising**: We often see new faces on CCTV's prime time, but they usually last only one to two months, at most three, before disappearing. These brands use the fishing trap. They lack the capability for a national market but want to create the illusion of a national brand. Their advertising aims to support recruitment; once successful, they focus on one or two key markets, while the majority of “fish” markets become mere spectators, left to foot the bill for the recruitment ads.

Of course, manufacturers' tricks are not limited to the above; due to space constraints, I won't elaborate further. How can distributors develop sharp eyes to avoid being tricked?

1. **Improve Overall Competence**: In today's society, those who don't learn fall behind and are eliminated, especially distributors who became wealthy in the 1980s and 1990s. Learning enhances your analytical, judgment, and market-grasping abilities. There's an ad slogan: “Your competitors are reading this book!” Indeed, if the devil rises a foot, you must rise ten feet to overcome it.

2. **Don't Neglect Small Good Deeds, Don't Chase Excessive Profits**: Seeking profit is a distributor's nature; without profit, how can one be a merchant? As the saying goes, “The way of business is the way of humanity.” Wanting to quickly open the door to wealth is like “Sesame, open!” When faced with profit temptations, distributors should be extra cautious.

3. **No Investigation, No Right to Speak**: Whether it's a model market or recruitment ads, don't be stingy with your feet and inspection costs if you're serious about taking on the brand. When visiting model markets, don't notify the other party; run, walk, listen, and observe more, record the most authentic parts, and then communicate with the manufacturer. At that point, they can't fool you, and they'll respect you more; they'll definitely seek you out for strategic market investment.

4. **Build Your Own Brand**: As a distributor, your distribution network, financial strength, character, and business reputation are all components of your brand. Don't be a one-man show; listen to your subordinates' opinions, as they may see things more clearly as outsiders. Brands aren't exclusive to manufacturers; Ye Maozhong is a brand, and “Liquor Marketing” is also a brand. Once your distribution brand is established, more and better brands will seek sincere cooperation with you, greatly reducing your risk of being tricked. As a joke, you might even trick others.

In fact, whether manufacturer or merchant, in this society that increasingly values integrity and in this business environment that emphasizes credit, setting traps harms others and yourself. If you lose your credit and integrity, who will trust you when you launch new products and recruit distributors next time? In this highly information-driven era.

**-END-**

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