---
title: "Winning Over Channels with Psychology: 10 Tactics to Understand Channel Minds"
description: "This article discusses the complex psychology of channel customers in FMCG distribution, offering ten tactics to handle their behaviors and objections, such as seeking discounts, finding faults, and fearing competitors, to improve sales and relationships."
author: "刘传飞"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2014-12-11"
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# Winning Over Channels with Psychology: 10 Tactics to Understand Channel Minds

> This article discusses the complex psychology of channel customers in FMCG distribution, offering ten tactics to handle their behaviors and objections, such as seeking discounts, finding faults, and fearing competitors, to improve sales and relationships.

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**【Introduction】**
When dealing with channel customers, some questions can be quite tricky. For example, during distribution, a customer might ask, "Has the neighboring wholesale department taken it?" If you answer "Yes," the boss says, "If he took it, I won't." If you answer "No," he says, "I'll take it only when he does." What to do? This hides a complex channel psychology issue. Therefore, mastering channel psychology is key to answering the boss's questions correctly.

In marketing practice, we inevitably deal with a large number of channel customers. Many salespeople return from the market exhausted, both physically and mentally. Channels are tough to handle. Some sales managers have said, "After a lifetime in sales, I've never seen a channel satisfied."

This is normal; it's a buyer's world. Channels lack nothing, especially salespeople—there are more salespeople than customers, so why wouldn't they be annoyed? Salespeople and channels are not on equal footing; channels are superior, picky, and always find faults. But even in the "terminal is king" era, we need channels to expand the market; we must face them, not avoid them. Channel members include urban and rural, male and female bosses; some are generous, some stingy; some impulsive, some cunning; some treacherous, some honest; from different customs and ethnicities. Most channel members are highly intelligent; their words to salespeople are purposeful, and the information they convey is processed and filtered. Many salespeople say, "The market is calm, why suddenly stop selling our products?" or "Competition is fierce; competitors are promoting, and many customers don't want to sell our products." This reflects either you're insensitive to the market, not receiving customer information promptly, or you lack market judgment and can't discern the chaotic information. In short, you haven't mastered channel psychology.

So, what are the channel psychologies? Let's summarize:

> **1. Pursuit of Discounts**
Merchants pursue profit; seeking discounts is the most normal and common psychology. But due to Chinese subtlety, no one says it directly; they signal through clever questions. Salespeople must capture the purpose behind these signals.

For example, a boss who usually ignores you greets you warmly today. Be careful—she wants a gift.

A customer says, "A terminal is opening soon with huge potential." This is seeking your support.

When a customer complains, "Business is tough, no profit," if your product is a market leader, this is a dangerous signal. It could mean they want a promotion, or a competitor is contacting them. Check from the side.

When delivering, a customer who could order five cases only orders two—what does that mean? They want a discount.

If your product's prime shelf position is taken by a competitor, don't argue; if you haven't visited for a while, the competitor likely gave the customer more benefits.

When distributing, no matter your price, customers say it's high. They can always name a cheaper product or one with more promotions.

Customers' pursuit of discounts is endless and never satisfied. As salespeople, what should we do? Here are some techniques:

1. When a customer asks for a gift, whether you have it or not, don't be afraid; stay calm inside, but appear apologetic, and promise to bring it next time (remember to keep the promise), because your visits are periodic, giving you time to prepare. Give gifts "multiple times, small amounts," frequently, every now and then. When you have many gifts, keep them separate, don't expose them. Don't dwell on the gift topic; quickly shift to your concerns.

2. When a customer asks for support, don't refuse; propose conditions (e.g., order a certain quantity or sign a short-term sales contract). If they can't meet your conditions, they won't ask again. Also, report to your supervisor and record it internally to avoid inconsistent answers if they ask others.

3. Pay close attention to major competitors' moves; this can be seen in customer language, inventory changes, and display changes. Stay highly sensitive and take decisive action.

4. Believe what customers say is true; don't disbelieve or easily agree; verify one by one. For doubtful information, don't refuse or agree; investigate and reply, and always respond to the customer.

> **2. Finding Faults**
Customers often compare your weaknesses with competitors' strengths, saying your price is high, not famous, no promotions, poor quality, or bad service—always finding faults. This is a strategy many customers use against suppliers: to psychologically attack you and suppress your morale. Because every transaction or communication is a negotiation, if they undermine your confidence, you'll make concessions, and they achieve their goal. It's said Walmart excels at this; suppliers often can't meet them in the first two visits, get only a few minutes on the third, and on the fourth, they criticize your product and service harshly, forcing you to concede and add benefits.

For customers' fault-finding, we should be calm, humble, and composed, neither servile nor overbearing. Never oppose their criticism, but state your advantages and selling points, explain patiently, and compare your strengths with competitors' weaknesses. Learn to use the "Yes, you're right... but" sentence pattern. The more thoroughly you understand the market and competitors, the easier it is to handle customers' pickiness.

> **3. Exclusive Sales**
Many customers want exclusive sales within a certain area, especially in county towns and townships. Because competition is fierce, exclusive sales control prices and profits. But unless you adopt a distribution model, suppliers generally don't let one customer exclusively sell, unless they have enough strength.

For this psychology, first explain: the market must be developed together; one person doing it alone may seem high-profit, but no sales volume, and you'll lose customers. Second, give larger customers more gifts, adopt differentiated policies to allow multiple customers to sell. Or start with small customers, then use exaggerated promotions to create a hot-selling situation, stimulating other customers to order. More often, we let some customers sell first, give up some, and achieve 60-70% distribution coverage. Then slowly find opportunities to expand share.

> **4. Herd Mentality**
Many small and medium customers have strong herd mentality; they don't dare take risks alone. If others stock, they do; if not, they don't.

For this, first find influential customers to stock, even with looser conditions (tell them only they get this treatment, others don't, and ask them to keep it secret). Then, when delivering, make a big show so other customers see it. It's easy then—capture the king first, and all will follow. I once sold instant noodles in a township. I found the most influential boss, Zhang, on the street. No matter what I said, he refused. We tried everything, but he still refused. Finally, I said:

"Brother Zhang, can I put 20 cases at your door?"

"Even if free, no; no room inside."

"Brother Zhang, not for you, just at the door for a while; I'll take them away later."

"Okay, but if they're lost, I'm not responsible."

"Haha, no problem. Who would steal at your door?"

So we stacked 20 cases at Zhang's door, high and visible, then went to other shops on the street:

"Look, even Boss Zhang ordered; it must sell well. How many cases?" Without much effort, almost all ten shops on the street ordered, and over 100 cases were distributed quickly, all for cash.

Finally, we returned to Zhang: "Brother Zhang, everyone ordered; you're the boss, you have to show face. Can we take them back?" Seeing others ordered, he couldn't figure it out and couldn't refuse, so he said, "Okay, okay, leave ten cases."

> **5. Seeking Market Information**
Customers have a strong desire to probe market information. Our minds should be full of various information—macro and micro—and we should occasionally reveal "valuable" information to customers to build trust, and we'll get the information we want, but never spread false information. Sometimes customers deliberately ask, "There's a buy-ten-get-one-free policy now, right? So-and-so said." Never verify with that person. It's a bluff to ensure they get the discount. Sometimes customers say, "Zhang San's business is great; he delivers hundreds of cases a day." This is actually trying to get information about Zhang San from you; don't take it seriously.

> **6. Showing Off**
Many customers like to show off in front of factory personnel that they sell well and fast. The purpose is to gain attention and more benefits. If you're familiar, they'll talk about their kids, dogs (or other pets), cars, and other proud things. This is a good time to build rapport and encourage them; definitely echo their topics and praise appropriately. This way, you not only sell products but also make friends.

> **7. Fear of Opposite and Neighbors**
There's a saying: "A close neighbor is better than a distant relative; an opposite neighbor is better than a close neighbor." But among merchants, it's not so. Over 50% of customers can't get along with adjacent or opposite competitors, and 70% are wary and worried about them. This is due to intense competition. Therefore, when distributing in dense commercial areas, pay attention to this subtle psychology and market reality. Be careful when distributing between adjacent customers to avoid offending them. So if a customer asks, "Did the neighboring wholesale take it?" Don't easily answer "Yes" or "No." Judge based on the situation: if the two are equally strong, they're likely to repel; if one is much stronger, the other is likely to follow. If you can't judge their relationship, these two answers are more appropriate: 1. "I haven't distributed to them yet; you have priority." 2. "He said he wanted it, but I haven't given it to him yet; I'll give it to you first. You decide how to distribute." Generally, after distributing to a larger customer, don't immediately go to their opposite neighbor. Of course, this psychology can be used: if a customer's conditions are too high and you can't get in, distribute to their opposite or neighbor with promotions to split their customers and force them to comply.

> **8. Wariness**
We're always told: "Don't talk to strangers." Customers are the same; they're wary of salespeople. They don't know your background and dare not deal with you. Their concerns: Will I make money? Will it sell? What if it doesn't sell? Until these are answered, they speak cautiously and won't buy.

For example, you ask, "Is the boss in?" They usually look at you and say, "The boss is not in" (though they are the boss). So experienced salespeople always say, "Hello, boss" (whether he is or not), not "Is the boss in?" If he answers, "I'm not the boss," you say, "Liar, I can see you are the boss."

"I'm really not; I'm an employee."

"Then you'll be the boss sooner or later. Where is the boss?" Then he'll tell you. Happy. We often encounter: "Boss, this is a new product with promotions; it's very profitable."

"Never heard of it; no one buys it."

"It's a Chinese famous brand; CCTV is advertising it; everyone knows it."

"The price is too high."

"Not high; it's cheaper than Brand X."

"People here only recognize Brand X; what if it doesn't sell?"

"Our products are returnable and exchangeable."

"Where do I find you?"

"We're at Road X, Number Y."

"Okay, come back another day; I still have stock."

Even with such complete answers, he still didn't buy. Why? Because he doesn't trust you. After you leave, he might check your background and verify what you said. Maybe next time he'll buy because the guard is down. So we must fully introduce our products and company, let customers know us, and dare to promise to eliminate wariness. Also, distribute multiple times; a one-time buy or not doesn't reflect true demand.

> **9. Rejection**
In this buyer's world, customers lack nothing, so their first reaction to sales is rejection (including the wariness above). Therefore, marketing says: sales start from rejection. If customers naturally accept, there's no need to sell; just deliver.

For customers' instinctive rejection, we must use benefits to move them: "good quality, low price, big brand, strong promotions, good service, returnable and exchangeable," etc. There are always several advantages that are also benefit points to move customers. Be sure to introduce all advantages, strive to move customers with benefits, and definitely find a reference brand to compare for more appeal.

> **10. Arrears**
All channel members are the same: they only want to take in money, not pay out. So, when delivering, collecting payment is troublesome. On the first contact, agree on payment terms. For old customers, plan to deliver when the boss is present; otherwise, you won't get paid. Generally, afternoon delivery is most suitable. Sometimes the boss says, "I'm short on cash; come back tomorrow." Then agree on a specific time and place to collect. Generally, don't let customers write IOUs (especially in the north, there's an unwritten rule: an IOU means long-term credit; no IOU means temporary credit). Before leaving, repeat the collection time.

Sometimes, to distribute, if customers won't pay cash, set different distribution policies: different promotions for cash and credit, encouraging cash purchases. Sometimes, to achieve distribution, let them pay half. Be sure to dispel customers' concerns, promise returns and exchanges; otherwise, they won't pay.

**Conclusion:** Facing various channel members and their myriad questions, we find that "eight-step visits" and "three-step negotiations" don't work well. It's not that textbook methods are useless, but you haven't flexibly applied them with channel psychology, like a mosquito-repellent charm that only works inside a mosquito net. Channel psychology is the net. The author believes that although channels are complex and changeable, there are traces to follow. We must understand the psychology of channel members from different backgrounds, personalities, ages, and even environments. Only by grasping their inner thoughts can we respond flexibly. A Qing Sao in "Shajiabang" could "build a seven-star stove and brew tea from three rivers" by observing each customer's psychology. Therefore, winning hearts is the top strategy.

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