Relationship Between Manufacturers And Distributors After Flat Channel

Business can not always be smooth sailing, and all kinds of problems emerge in an endless stream.

Cooperation between manufacturers and distributors

After flatting, it seems that subtle changes have taken place.

Finding the right reason is directly to the essence.

When the channel is flat, it is difficult for large dealers to accept the fact that they have been left out. Some condemn the manufacturers for not being moral, ignoring the hardships of the early distributors when they create the market.

In fact, in the commercial field, such sentimental sentimental things can't be used. The so-called company's early cooperation history, even the personal relationship between the boss of the dealer and the senior manufacturer, still can not resist the huge impact brought by the flat channel.

The cooperation between manufacturers and distributors is actually to borrow their capital, team, company platform, social resources, sales network and other hardware and software resources, reduce their own operating costs and operational risks, and enhance the efficiency of market operation and sales work. This is the essence.

Keep up with the market.

In the early days, the relationship between the manufacturers was centered on the product and the profit brought by the product sales as the cooperation link between the two sides. The form of interest was single and the mode of cooperation was simple. The manufacturers attached importance to the sales ability of the distributors. The dealers attached importance to the products, brands and market inputs of the manufacturers. The main work of the manufacturers was centered around the "selling". The specific docking between the two sides was also concentrated on the tactical level, and even the contradictions between the two sides were concentrated on the distribution of interests.

Meanwhile,

The relationship began to change, first of all, the competition for excellent dealers. A good number of distributors are always few. From the previous market share, the manufacturers have extended to the share of excellent dealers. Excellent dealers have become one of the important resources for the current and future development of the manufacturers.

Dispel worries and practice inner strength

There are two problems in the cooperation between manufacturers and distributors: first, because of the competition among many manufacturers for excellent distributors, manufacturers compete with each other, even some of them are spoiled.

At the same time, dealers themselves have begun to compare the policy inputs of different manufacturers, and even begin to make use of the differences in input between manufacturers, and constantly encourage manufacturers to increase investment. Manufacturers will have to consider whether to replace distributors or make straight battalions themselves.

Because of their own development strategy, manufacturers are increasingly demanding the matching degree of distributors. Instead of simply focusing on the strength and sales ability of distributors, they begin to focus on the development direction, planning and deployment, background management status of their dealers, their own market input consciousness and ability, whether they can keep pace with the development speed of manufacturers, whether they can meet the market construction goals of manufacturers, and whether they are competent for the new demands of manufacturers on market performance.

Keep pace with the times and do cost accounts well.

In addition, manufacturers dare to cut off dealers, of course, after careful calculation, on the one hand, economic accounts, on the other hand, safety accounts.

The current economic efficiency of the dealer in terms of cooperation efficiency, management cost, performance return, market construction and so on has not been in line with the new standard of the manufacturer, resulting in a relative increase in the cost of cooperation. On the other hand, it is a safety account, and some dealers are doing business in black and white businesses in the local area, which will bring a lot of trouble to the market operation of the manufacturer and a lot of unsafe factors, which will also lead to an increase in the market operation cost of the manufacturer.

Of course, when dealers can not keep up with the development speed of manufacturers and slow growth of performance, manufacturers also have two choices, one is simply cutting big or small, or directly changing new ones. Now more and more manufacturers are assisting dealers in technical aspects, and from the normal stage of operation to the background management level, this is also the trend of the times.

Therefore, manufacturers need to be clear and helpful.

Upgrading or direct replacement of new distributors is the guiding ideology for future manufacturers to cooperate and develop.