As a manufacturer's salesperson, winning over distributors is a complex project that requires considerable effort and strategy. However, for a distributor, it is extremely simple to give the manufacturer's salesperson a hard time—just say, "I don't have money recently, so I can't make a payment." This is enough to give the salesperson a headache. The distributor may even say, "Your market plan is good, and your purchase policy is good, but I'm temporarily short on cash, so I can't make a payment." They might add phrases like "willing but unable" or "you can't make bricks without straw." The salesperson, left with no choice, reports to the company: "The distributor is very interested in our product or plan, but he is temporarily short on funds and cannot make a payment."
As a distributor with over ten years of experience, I have said such things to manufacturers many times. But these words are often half-truths. Sometimes it's true that there's no money, but more often, it's not about money at all—it's due to other reasons:
Testing whether the manufacturer can provide initial stock or credit terms Distributors constantly strive to shift operating costs and risks to the manufacturer. The best way is to get the manufacturer to provide initial stock (floor stocking) or credit, with the option to return unsold goods. Distributors believe that every manufacturer has the potential to offer such terms, so they persist in testing until they find the limit. Saying "no money" is also a test to see if they can force the manufacturer to offer better terms.
Digging for more favorable policies from the manufacturer Manufacturers' policies have unlimited room for negotiation, but distributors must actively seek them out; otherwise, they won't be offered. Moreover, if they don't fight for better terms, they might lose out, since manufacturers have hundreds of distributors, and it's unlikely they treat all equally. Distributors wonder if others have secured better deals, and whether they are at a disadvantage. The manufacturer's preferential policies are not just requested but forced out. By saying "no money to stock up," the distributor hopes the manufacturer will offer more favorable terms to encourage purchases.
Having money but refusing to pay Sometimes the distributor believes it's not the right time to stock up or accept the manufacturer's promotion, but doesn't want to damage the relationship by being too direct. So they use "no money" as an excuse: "It's not that I don't want to stock up, but I really have no money. Once I have money, I'll definitely buy."
Concern that it's the salesperson's personal behavior Many specific instructions from the manufacturer are conveyed to the distributor by the salesperson. The problem is that distributors may not trust the salesperson. Are the salesperson's words truly from the manufacturer, or are they acting on their own to achieve personal gains, such as forcing the distributor to increase orders to earn more bonuses? Since it's hard for distributors to distinguish between manufacturer policy and the salesperson's personal agenda, they use "no money" as a safe excuse to decline payment requests without offending the salesperson.
No money, but they could borrow However, the distributor may feel that this manufacturer, this plan, or even this salesperson is not worth borrowing for. Borrowing is a basic skill in business—from relatives, employees, peers, or banks. If you can't borrow, you can't do business. The key is whether it's worth borrowing for. In short, the real reason of "no money" is rare. As a manufacturer's salesperson, when you hear a distributor claim "no money," the first thing to do is reflect on yourself. It's likely that your communication style or the thoughts you've conveyed have raised the distributor's suspicion or even offended them, prompting them to use "no money" as a shield.
So, what should a manufacturer's salesperson do when a distributor says "no money"? Besides self-reflection, here are some suggestions:
- Provide official documents from the manufacturer's headquarters to clarify that the instruction is from the company, not a personal action.
- Never argue with the distributor about whether they have money, such as pointing out that they just collected a payment—this will only annoy them further.
- Inform the distributor of other distributors' payment progress, especially those nearby and familiar.
- Help the distributor collect outstanding payments, regardless of whether it's related to your products. The goal is not just to recover money but to show your attitude.
- Prepare a face-saving excuse for the distributor in advance—a way for them to say they now have money. Since they previously claimed to be broke, if they later decide to pay, you need to smooth things over and give them a graceful way out.
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