---
title: "Wei Qing: 14 Models for Increasing Sales through Product and Channel Management!"
description: "This article presents 14 models for increasing sales through product line management and channel profit management, including methods such as reflecting on your own products, comparing with competitors, identifying gaps, managing channel profits, and adjusting product structures."
author: "魏庆"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2014-10-06"
language: "en"
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# Wei Qing: 14 Models for Increasing Sales through Product and Channel Management!

> This article presents 14 models for increasing sales through product line management and channel profit management, including methods such as reflecting on your own products, comparing with competitors, identifying gaps, managing channel profits, and adjusting product structures.

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**Product Line Management Increment Model**
Keywords: Reflect on your own products, compare with competitors, find gaps, focus on channel needs, focus on market characteristics

**1. Reflect on your own products:** Leverage your product advantages. For Master Kong salespeople, if “Fuman Duo” instant noodles are already selling well (mainly the braised beef flavor), would it be faster to launch the “Hao Zi Wei” brand or the “Fuman Duo” spicy flavor? Obviously the latter—expanding flavors and specifications of a strong brand is a shortcut to growth.

Additionally, if a product sells exceptionally well in other regions, does that indicate it has market competitiveness? If you haven't listed this product in your area, should you consider it?

**2. Compare with competitors:** Fill gaps and defend against competitors. Look at competitors' functions and price points; check if your product line has gaps. For example, if you haven't launched a bagged noodle at 1.5 yuan retail in your market, you're ceding that price segment to competitors. Also, if you only offer halal flavors, but competitors' pork rib flavor sells well, that's a gap.

If competitors launch a main product at 3 yuan and you have no mature product at that price, or several products that haven't taken off, you need to find a defensive product at that price point—either launch a new one or select a promising existing product to cultivate.

**3. Find gaps:** Look for market gaps. For instance, if the local market mainly sells beer at 3 and 5 yuan retail, the 4 yuan price point might be a gap and opportunity.

**4. Focus on channels:** Metro wants bulk-pack products, Carrefour wants five-pack bundles, group buying wants products with low price transparency, and small entertainment venues want high-margin products. You must prepare products suitable for each channel you enter.

**5. Focus on market characteristics:** If locals drink 8-degree beer, launching a 10-degree product won't work. Launching a product that fits the market is crucial for sales.

Review sales curves by region; often a single well-matched product creates an inflection point. Using these five methods, can you find and promote a product that fits the local market and target channels, leverages your strengths, and hits competitors' gaps? Will that increase sales?

**Channel Profit Management Increment Model**
Keywords: Channel profit = Distributor price order × Channel bonus × Sales volume × Product mix × Channel structure × Price difference × Rewards × Shortening channel levels

Have you seen this: In the wholesale market, wholesalers complain about distributors: “That guy Wang is a jerk—he sells juice to retail stores at 38.5 yuan per case, and to us wholesalers at the same price. We can't make any money!” Or distributors maliciously raise supply prices, making 3 yuan per case while township sub-distributors only earn 0.5 yuan?

Does wholesaler lack of profit affect sales? Of course! If you communicate with distributors to leave wholesale-retail margins and activate the wholesale channel to help sell, will sales grow? Similarly, any channel—supermarkets, retail stores, sub-distributors—that lacks profit is hurting your sales!

What to do when channel profits are unreasonable?

The habitual approach is promotions. Poor regional managers only know channel bonuses—“buy 100 cases get 5 free” or “buy 100 get 10”—but eventually they'll “break through the bottom line and kill themselves.” Better ones try variations like order meetings, sales contests, or point cards. These methods provide immediate results and boost channel profits, but they risk creating bad inventory, price erosion, and promotion dependency.

Improving channel profits isn't just about bonuses. Here's a model formula:

Channel profit = Distributor price order × Channel bonus × Sales volume × Product mix × Channel structure × Price difference × Rewards × Shortening channel levels

**6. Distributor price order:** Distributors should have price differences across channel levels: direct supply to hypermarkets, large restaurants, and nightclubs should be higher (to cover costs); direct supply to small retailers should be higher (to reserve margins for second-tier wholesalers); wholesale prices to distributors' direct wholesalers should be lower (so wholesalers can profit when supplying retail); prices to large wholesalers in fringe markets and special channel distributors should be even lower (to leverage their coverage); group buying prices should be high and focus on products with low price transparency (to allow for commercial kickbacks). Few distributors have such clear price management thinking. If the distributor's price structure is flawed, the entire market price is chaotic from the source. Managing distributor price structures and helping them establish normal price tiers is your first step in managing channel profits.

**7. Channel bonuses and concessions:** Examples include order meetings, purchase rewards, volume rebates, purchase discount coupons, limited-time purchase rewards, sales contest rewards, point card rewards, box exchange cards, in-box scratch cards, and “every box has a gift.” Note: Match promotional targets with methods. Be clear which channel you intend to boost, then choose the method. Avoid mismatches—e.g., if you want to increase retail store profits but use “every box has a gift,” you'll actually boost wholesaler profits because they'll patiently open boxes, remove gifts, and reseal them.

**Sales volume:** Lower unit profit but higher volume increases total profit. For example, help school outlets with “consumer empty bag exchange” promotions, or beer launches with “open lid, win another,” help distributors expand coverage areas, hold order meetings or wholesale distribution, help township sub-distributors develop market day channels and village networks—all these increase volume while keeping unit profit unchanged.

**Product mix:** If wholesale-retail points aren't profitable because they only sell an old product with thin margins, helping them introduce new products or upgrade old ones can improve their profit.

**Channel structure:** Distributors, wholesalers, and sub-distributors have secondary wholesale functions. Guide them to sell through multiple channels, not just supermarkets and circulation. Blank township van sales, group buying development, train station supply, internet café supply—there are always less “mainstream” but higher-margin channels. A richer channel structure improves distributor and wholesaler profits.

**Price difference:** There are five ways to change unit price differences across channels:

**8. Directly reduce purchase price through promotions or bonuses.**

**9. Raise selling price via promotions:** If historical practices have left distributor-to-wholesaler prices too low to be profitable, distributors can collectively raise prices to wholesalers, initially with high prices and heavy promotions, then gradually reduce promotions to stabilize prices, ultimately improving distributor price differences.

**10. Raise selling price via rebates:** If wholesalers undercut each other until neither wholesalers nor distributors make money, distributors can sign agreements to raise supply prices to wholesalers, requiring them to “buy and sell at the same price,” then rebate at month-end. This raises wholesalers' selling prices and improves unit price differences for both wholesale and distribution channels.

**11. Product upgrades to raise retail prices:** Rename products as “upgraded version” or “second generation,” print “Upgraded!” on packaging and posters, clearly communicate the benefits, and set clear prices (so consumers believe the manufacturer raised prices, helping retail stores stabilize prices). This raises terminal prices and channel selling prices, naturally increasing unit price differences across channels.

**12. Channel product protection:** Restaurants are high-cost, high-margin channels; circulation is low-margin, low-cost; supermarkets are high-cost, low-margin. If these channels share the same product, they may undercut each other. When necessary, differentiate packaging or models between supermarket and circulation products to avoid price erosion and protect unit price differences.

**13. Rewards:** For key channels where short-term product mix adjustments can't increase profits, and immediate channel bonuses are inconvenient due to overall price stability, use “rewards” to boost profits—e.g., wholesale stack display rewards, restaurant table display rewards, name-brand tobacco and liquor store/model store display rewards, exclusive sales rewards, distributor regional distribution contest rewards, and distributor regional no-complaint contest rewards.

**14. Shorten channel levels:** For example, if distributors aren't profitable, give them a product to supply directly to terminals, bypassing wholesalers, to compensate their margins. Or for key wholesalers with low profits, make them sub-distributors to enjoy rebates and increase profits.

Reflect: Previously, distributors' own price structures were unreasonable, plus channel undercutting left wholesalers and retail stores with no money, so they hid your products. Previously, the only way to improve channel profits was bonuses. Now, using the channel profit improvement model, you can manage distributors' tiered selling prices, systematically adjust channel profit structures, and ensure every level makes money. Can that increase sales?

This article is excerpted from Wei Qing's book “Terminal Sales Secret Manual,” published by Peking University Press.

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