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Distributors, Calculate the Cost of Mobile Sales
Almost every food distributor starts with mobile sales in the early days of entrepreneurship. In a sense, mobile sales is the simplest and most practical sales model, where salespeople visit customers with loaded vehicles, sell and collect payments on the spot, and handle tasks such as advertising material posting, product display, and customer complaints. However, as labor, fuel, and vehicle costs continue to rise, and competition among homogeneous products intensifies, higher demands are placed on distributors' terminal operations. Many distributors complain that mobile sales costs are too high and efficiency is low, leading to thin profits or even losses. But the root cause is often poor management during mobile sales or that the current business situation is no longer suitable for this model. So, how should distributors adjust and improve their sales models to maximize profitability?
New Distribution3 Ways to Remove the Three Big Stones Pressing on Distributors: Inventory, Wages, and Fuel Costs
As market competition intensifies, the FMCG industry has entered an era of thin profits, with downstream costs rising faster than GDP growth. Distributors face declining market capacity and increasing operational costs, but by implementing modern management systems—such as route planning, outlet classification, online management, and standardized visits—they can cut inventory, fuel, and labor costs to improve profitability.
New DistributionTips for Controlling Promotion Costs
Promotions are a powerful sales tool, but they usually cost money. Suppliers naturally want to spend less and achieve more, so how to minimize costs while maximizing promotional effectiveness is a common goal. Since retail promotion resources are scarce, retailers will try to raise the 'threshold' for promotions to extract more benefits from suppliers. Therefore, suppliers should design their promotional plans from the retailer's perspective, using 'limited quantity' to stimulate buyer expectations and 'exchange' methods to reduce their own costs.
New DistributionPitfalls in 'Agency Contracts' That Distributors Must Guard Against!
Disputes between manufacturers and distributors often arise from the manufacturer's failure to fulfill contract terms or exploiting loopholes. Since manufacturers typically provide the contract template, they tend to have the upper hand in disputes. To minimize risks, distributors must carefully negotiate key contract terms before signing.
New DistributionThe Twenty-Character Core of Negotiation Skills
Negotiation skills can be summarized in twenty characters: 'Advance step by step, lure gradually, be polite and measured, neither humble nor pushy, and strike in time.' This article elaborates on these principles, emphasizing careful planning, patience, respect with principles, and seizing opportunities to close deals.
New DistributionRejection: The True Beginning of Sales
After graduating with an environmental protection degree and struggling to find a related job, the author decides to switch careers and applies for a regional sales manager position at a major home appliance company. Despite facing rejection and disdain from the recruiters, he persists in presenting himself, ultimately getting hired and learning that the company intentionally tests candidates' resilience to rejection, as it is a crucial trait for sales.
New DistributionDistributors: There Are Tricks to Distribution and Sales
For many baijiu distributors, product distribution can be done quickly, but market activation after distribution is slow. Once products don't sell, it leaves a bad impression on retail outlets, affecting customer relationships and making it hard to distribute new products later. Terminal sales after distribution is a key indicator of a distributor's performance.
New DistributionHow Should Distributors Handle the Headache of Increasing Sales Targets?
A distributor named Xiao Xu is worried because his renewed contract sets a significantly higher sales target than last year, while market expense support from the manufacturer seems to be shrinking. To cope with annually increasing sales targets, distributors must build their own sales channels and distribution networks to reduce dependence on the manufacturer and gain a stronger position.
New DistributionThe Road to Self-Built Retail Terminals for Distributors
Distributors are increasingly building their own retail terminals to control the market and escape the pressures of traditional channels. This article shares case studies and discusses the challenges and key success factors for such ventures.
朱志明The Manufacturer-Dealer Debate: Who Really Owns the Market?
When a manufacturer partners with a local dealer to operate a regional market, who actually owns that market—the manufacturer or the dealer? This question often lies at the heart of disputes between the two parties, as each believes they are the rightful owner and leader, leading to conflicts and misunderstandings.
潘文富Joe Girard: The '250 Rule' for High-Efficiency Sales
A satisfied customer can bring you 250 potential customers, while a dissatisfied one can create 250 potential enemies. Joe Girard, who became a car salesman after bankruptcy, discovered this simple yet powerful rule and used it to build a successful sales career.
New DistributionPromotional Killer Move: The Dilemma of Product Bundling
Bundling is a common promotional tactic, but it doesn't always work. According to prospect theory, combined payment reduces pain, but when products of different price tiers are bundled, consumers may value the bundle less than the expensive item alone, a phenomenon known as subtractive valuation. To avoid this, retailers should avoid bundling products from different price categories, price items separately, and guide consumers to focus on non-price factors.
New DistributionDistributor Selection Strategy
Many distributors develop external markets by sending a delivery truck to periodically visit several counties/cities to drop off goods, with sales staff earning commissions based on sales. While this approach is quick and simple, it often leads to problems such as price confusion, low sell-through rates, poor display effectiveness, and stockouts. The root cause is the lack of a unified market manager. Selecting a suitable distributor to centralize supply, while the upstream distributor still provides vehicles and personnel for periodic visits to help with distribution and market maintenance, can solve these issues. The distributor is granted local "general agency" rights, making market maintenance directly tied to their interests, thus ensuring dedicated efforts. Choosing the right distributor is crucial for market development success.
New DistributionOpportunities and Threats Facing Traditional Industries
An increasing number of traditional enterprises are planning transformation, yet they face a severe crisis as they lose their bearings in the Internet era. The biggest crisis is not current profits but the ability to clearly grasp the future, as traditional marketing loses its momentum and transformation poses risks.
New DistributionDistributors That Don't Launch New Products Never Grow!
Distributors who only sell mature products won't succeed. Launching new products is key to growth, as it brings manufacturer support, higher margins, better channel utilization, and new channel expansion. Successful new product launches also offer opportunities for second-time entrepreneurship and enhance a distributor's reputation.
New DistributionHow Should Second-Tier Distributors Transform?
This article discusses the historical evolution and current challenges of second-tier distributors in China's FMCG industry, and proposes two transformation paths: upgrading to first-tier distributors or controlling rural retail terminals.
New DistributionWhy Do Distributors Misappropriate Manufacturer Funds?
Among the various accusations manufacturers level at distributors, misappropriating manufacturer funds (including materials) often ranks in the top three. There are many ways distributors do this, such as withholding channel promotion resources intended for downstream customers, selling promotional materials as scrap, and inflating entry fees.
New DistributionDealer Employment Principles: Character First, Attitude Second, Ability Third!
In dealer management, cooperation between departments and individuals is inevitable, making the choice of employees and partners a crucial consideration. The article emphasizes that character is the primary principle, attitude is the fundamental second, and ability is the foundational third, advocating for selecting people with integrity and dedication over mere capability.
New DistributionBusiness Undercover: Distributors Launch a 'Talent War'
Sending 'undercover agents' to competitors is not uncommon. Distributor boss Zhao Xin aims to use 'business undercover' as a 'more promising' competitive tactic with upstream and downstream partners.
New DistributionHow Distributors Can Promote New Products at the Terminal
Terminals, distributors, and consumers are not short of new products, but for distributors, a successful new product means a new profit source. However, the survival rate of new products is less than 15%, and in the FMCG industry, it is as low as 5%. This article uses the example of Boss Hu, a distributor in Changsha, to explain how to design an effective new product launch plan and find the connection point between the new product and the terminal, thereby improving the survival rate of new products.
New DistributionMastering 'Discourse Power' in the Channel Chain
Channel strategy is about solving how a company's salespeople and channel partners actively sell products, and how to maximize the integration and utilization of sales resources. The core is to ensure product visibility through distribution and to build base markets that provide cash flow and experience for expansion.
New DistributionThe Road to Distributor Private Brands
In Fuzhou's retail bulk goods area, the 'Changsheng' brand stands out as a distributor's own retail brand, offering a wide range of products from various manufacturers. This article explores how distributors can build successful private brands, using 'Changsheng' and other examples, and provides practical advice on quality control, market positioning, packaging, branding, and channel coordination.
New DistributionThe World Is Changing: How Can Distributors Transform in the New Mobile Internet Environment?
After a year of OTO hype and industry disruption in 2014, Chinese entrepreneurs are pondering how to navigate the future if OTO becomes essential. This article explores redefining business, trade, and marketing in the mobile internet era, and outlines the future role of distributors as operators and service providers.
New DistributionWho Is Disrupting and Eroding the Development Space of Distributors?
Distributors face immense challenges in the product cycle from manufacturers to consumers, including manufacturer-distributor conflicts and terminal demands. However, a more profound force—industry consolidation, cross-sector integration, and e-commerce—is reshaping their future, forcing them to transform or be left behind.
New Distribution