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Dealers Should Have Great Wisdom In Dealing With Manufacturers.

2008/5/21 15:13:00 13

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In my opinion, many dealers are rather one-sided on how to choose the agent manufacturers. Most of the distributors are most concerned about product prices, credit and exclusive agency rights.

In fact, I think the distributor chooses the agent manufacturer first to understand: whether the market strategy and goal of the manufacturer are in line with the company's strategy and goal (at least the short term goal or strategy). If so, the cooperation between the two parties has a good beginning, and you can easily get the support of the manufacturers. If there is a gap between the strategies and goals of the two sides, and you can not confirm that the gap can be shortened, it is difficult to get the support that you want, and the final results are mostly dismiss.

Different manufacturers, manufacturers at different stages, different regions of the market strategy and objectives are different.

The core of the market strategy is 4P product strategy, price strategy, channel strategy and promotion strategy, and the different market strategies of the manufacturer decide different objectives, roughly two, 1) market priority: its target is sales volume, growth rate, market share two) profit priority: its objectives are profit, profit margin, sales of key products and sales of key customers.

Or both of the two.

Let's talk about cooperation with the first kind of manufacturers first.

Most of the manufacturers who adopt the market priority strategy are the latecomers of the market. In pursuit of sales growth rate, market share and market leadership, their price strategies are often: price war (discount and high year-end return), credit and loose credit policy; channel strategy is often: the maximum use of local distributor's sales network (at this time, manufacturers tend to be extensive management of the channel), increase the distribution rate of distribution channels, mass advertising promotion, etc.

If dealers are also targeting sales growth and market share, they are ambitious to become leaders in the industry in the region. They will sell over 100 million yuan and are willing to invest in market development and channel construction. Maybe the dealer is not the strongest in the industry at present, but momentum and domineering must be the strongest.

The cooperation between them is not only a combination of strength and strength, but also a match between the two.

The cooperation between dealers and manufacturers will undoubtedly enable them to stand on a higher operating platform. Needless to say, manufacturers will give maximum support in price deduction, credit policy, channel distribution, advertising and sales promotion, and because manufacturers have entered the market at first, they have no ability to control the offline channels, and sometimes even agree with your regional agent.

If businessmen choose the right manufacturers to seize the opportunity, it is likely that in a short span of a few years, from weak to strong, from small to large, become a well-known defective ear wholesalers, such examples are too many.

Of course, we should cooperate with the market priority manufacturers. Besides the goals and strategies that are consistent with the upstream manufacturers, dealers should also pay attention to the following points:

First, cherish the opportunity and seize the day: in fact, there is not much time left for the dealer to grow bigger and stronger. In the next 2-3 years, the dealer can grow bigger quickly. It must be the best combination of time, place and place.

Two) take the lead and get the best idea. Manufacturers choose partners in addition to requiring customers to have a certain scale of business, sales network, credit standing, pportation and warehousing capacity.

Therefore, dealers should win the support from manufacturers.

1) showing a positive desire and attitude to cooperate with manufacturers.

2) change "traders" into "traders" (manufacturers like "businessmen").

3) there is a strong desire to be trained by the manufacturers, and actively request the training support from the manufacturers.

4) provide competitors with reports on market dynamics (preferably written).

5) showing brand loyalty.

Three) establish relationships and get support: maintain good relations with key people in the factory to ensure that the sun and rain are sprinkled on your body from time to time, so that your business can grow fast, but you should also pay attention to good relations with the general sales staff.

Further discussion on cooperation with second kinds of manufacturers

The manufacturers who take the profit priority strategy are always the leaders in the market. In pursuit of profit and growth rate, their product strategies emphasize the importance of products with high profit margins and excellent customers who can also bring high profits; their price strategies are higher than their competitors and tight credit policies; the biggest difference between the former and the previous manufacturers is that the channel strategy has undergone great changes, the sales network tends to be flat and terminal, the control of the manufacturers is strengthening, the profit margins and geographical space of distributors are becoming less and less, and their status is getting lower and lower.

This makes most dealers, especially early distributors who are good at wholesale and large circulation, feel very uncomfortable. There are three ways to cooperate with such manufacturers: 1) follow the trend to become a chess piece in the hands of manufacturers or become a logistics distribution company of the manufacturer 2) and visit the manufacturers of the first category.

3) improve competitiveness and discourse power, but dealers themselves make the following changes:

First, flat management of the distribution network must be carried out first.

The subordinate customer structure of some businesses is unreasonable. The sales of some large customers account for a large proportion of the sales volume of their entire offline customers. Large customers are often the potential development targets of the manufacturers.

The development of a large number of small and medium-sized customers, so that your offline as close as possible to the terminal, manufacturers can not skip you and one hundred small business hawkers direct business, because such a cost of service is all manufacturers can not afford.

Two) change the structure of offline customers and increase the proportion of end-users.

If the wholesale customers account for a large proportion of their sales, the proportion of the final direct user sales is too small, which is also very dangerous.

Wholesale customers mostly appear on the market. It is easy for manufacturers to notice that they are in the clear, and the end users are in the dark, and are closely related to distributors.

Three) establish two-way business relationship with offline customers, such as you are a distributor of A brand, and your offline customers may be the first class agents of B brand.

If it is two products or brands that do not conflict with each other, you will be the two tier agent of your B brand.

The two sides rely on each other's interests to sell their products. It is not easy for manufacturers to jump over your direct customers and become distributors.

Four) strengthen the role of the dealer's capital platform and logistics platform.

The capital platform is the risk of funds borne by the manufacturer, or the cash from the manufacturer and credit to the two level of business, or the guarantee to obtain credit credit from the manufacturer to the two level of business.

Dealers with economic strength, because this has its existing value.

Logistics platform is also the same reason. When manufacturers are restricted by pportation cost and can only rely on mass pportation, the role of logistics platform played by local distributors is even more flat than that of factory networks.