What Are the Pros and Cons of a Dealer Market?

Channel distributors are used to guide distributors on how to operate products, assist distributors to establish channels, and act as a bridge for manufacturers to facilitate smooth communication between the two and control the operation behavior of distributors. Channel refers to the sales route of goods, which is the circulation route of goods. It refers to the sale of goods to different areas for manufacturers' products to reach certain social networks or agents. Therefore, a channel (marketing channel) refers to a unit or individual that only has sales or services in a certain area and field. This is the distributor. The distributor has an independent operating agency and owns the ownership of the product (buying out the manufacturer's product Services), to obtain operating profits, multi-variety operations, the process of business activities is not subject to or is rarely limited by suppliers, and is equal to the supplier's responsibility.

Channel Reseller

Channel distributors are to guide distributors on how to operate products and assist distributors to establish

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Corporate values

Speculation, profiteering, and hypocrisy. These behaviors that are not on the table still exist in the development process of domestic IT dealers.

In order to adapt to such an environment, some sales staff will do some flickering things when coordinating and communicating with customers. In fact, it is these self-righteous smart people who have suffered most in the end. Deceive the customer for the first time, and the second time? How much will it cost to make up? This is why many good brands are getting worse in the hands of a dealer.

For dealers, there must be a cultural connotation of upholding integrity, respect for humanity, embodying credibility, and disseminating correct values in corporate management. Gone are the days when a piece of money was caught or a piece of money was announced to declare a business failure. Only when the dealers cultivate the market well, can the development of the enterprise come to fruition, worry and effort. ^[1]

Human Resources

Attaching importance to talents and respecting employees is a very loud slogan uttered by today's dealers, but how many do they really do? In Jiangxi, the sales of household appliances agents such as Siping and Nanfang are 50,000 to 60,000 yuan per year. High ones can get more than 100,000 or even 200,000 yuan, but brain drain often occurs.

For dealers, products, talents, and networks are the foundation of their survival. The instability of talents often causes temporary or partial paralysis of the sales network, which is common in the marketing industry. Hegemonism of individual bosses, individual heroism within the enterprise, and imbalance in management are all reasons for the brain drain.

System Management

The development history of domestic dealers can be summarized in three sentences: the courage in the 1980s, the capital in the 1990s, and the management in the 21st century. Dealers must have their own advanced marketing management system and strictly control the continuity, rationality, institutionality and systemicity of execution.

For example: the financial department must not only be responsible for the operation of funds, but also do a good job in account management and assist sales; the Ministry of Commerce must not only do a good job of customer management, but also order management, item management; the warehousing department must not only do well in selling, Inventory management of slow-moving and damaged products must also be timely summarized and feedback; the logistics department must not only be responsible for distribution, but also understand order planning.

Although on the surface, each department is independent of the others. However, in actual work, it is necessary to communicate and assist each other in a timely manner, so as to have the opportunity to transform from the original transit operator to a marketing operator, provide a professional service system for manufacturers and downstream outlets, and become a market manager and leader.

development plan

Many distributors are eager to represent more good brand products or have larger regional agency rights, but why never consider whether their own funding arrangements and personnel placement can be in place and whether they can meet the requirements of manufacturers?

Some agents may consider the issues of operating costs and profit margins, and find ways to increase the agency rights of the two brands. In their view, this can save more storage, travel, wages, and other costs, and multiple brands and more profits, can be bright in the east and the west. Who knows, the number of warehouses increased, the number of businesses increased, but the benefits did not increase much. Instead, it caused the rapid turnover of funds, the unbalanced inventory backlog, and the best-selling brands had no money to buy, and almost lost the agency qualification. Have to use real estate, cars and other mortgages to maintain capital turnover.

The bigger the stall, the higher the profit. The decline of many well-known companies is precisely because of their crazy extension and expansion, which has caused their main products to be weak and their influence to decline in market competition. Distributors should first refine, refine, strengthen, and enlarge the products they manage, and then plan for greater development.

Product Portfolio

Product marketing methods are used well, which can not only prevent price wars and channeling, but also consolidate the centripetal force of the sales network and strengthen the influence of the terminal. Therefore, among the various products distributed by the merchant, the most important thing is to consider the combination of products. In this way, not only can they pull each other and promote sales, but they can also take advantage of the complementarity between products to adjust the turnover rate of goods and accelerate the return of funds.

The more thorough the distributor's product portfolio, the more capable it will be to strengthen channel operation capabilities, generate economies of scale, save costs, and create profits.

Financial Management

At present, there are still many dealers whose financial management only stays on the simple account of daily advances and sunrises. Operating expenses are arbitrarily expended and the procedures are incomplete, which cannot be reflected in the financial books.

In the minds of many dealers, the money they earn can be freely controlled, and the only approver may be his wife, mother and other relatives. And these approvers only play the role of chief financial officer most of the time. As for the employees' respective salary standards, reimbursement standards, shopping standards, entertainment standards, etc., they are often not considered, and there is no sound procedures and systems to regulate them. As a result, many dealers sometimes wonder: "I usually earn a lot of money. Excluding those miscellaneous expenses, how can I have little money at the end of the year?" Therefore, the dealers must establish and improve their own financial management system. Monthly sales, profit and loss, assets and liabilities must be reflected in detailed data. Only in this way can we know how much we have made and how much we have lost, and in what ways we need to reduce operating costs and turn losses into profits.

Responsibility, right, profit

In the management model of dealers, it is not difficult to find that the phenomenon of one person with multiple functions and one person with multiple positions is the most common. Unclear responsibilities and rights often lead to poor performance and mutual shirk.

In today's increasingly fierce market competition, first of all, we must establish a high-quality marketing team. We must fully clarify the responsibilities, rights, and interests of each person. Who should sell and deliver goods must be implemented. How to evaluate the number of people, and so on, should be fully institutionalized.

In order to effectively motivate sales staff, decentralization of market policies can be tried to give employees more market operating space, implement regional market responsibility and power linking, so that they can truly get rid of the mentality of working people, and operate and manage the market from the perspective of operators. Improve corporate cohesion and combat effectiveness.

Cooperation with manufacturers' ideas

Manufacturers value sales, and dealers value profits. This is the focus of conflict between the two parties. Some dealers often ignore small-scale profits for the sake of small profits, preferring to make a few dollars more than selling small profits.

Manufacturers and merchants complement each other, and will not strip the dealers of too much profit in order to increase sales, let alone do things like kill chickens and eggs for sales. Why do manufacturers introduce sales strategies such as monthly returns and annual returns? This is not only an incentive, but also to protect the profit of the dealer and make the cooperation between the two parties more harmonious.

Upstream and downstream network relationships

Distributors must always maintain the interests of retail customers with outlets, and take care of and operate their own downstream outlets as their own branches. Distributors can try to manage the distribution outlets in the form of equity or franchise. Regardless of the mode of operation, as long as you have this kind of partner-type service consciousness, you can form a community of interests with the distribution network, avoiding open competition between dealers and distribution customers. Distributors must give their greatest support in terms of human, material and resources. The outlets are good, and the profit points of the dealers can be more.

Power of alliance

In a mature commercial wholesale market, in order to avoid the deterioration of competition, special committees are usually set up to exchange information, exchange ideas, draw up a blueprint for development, coordinate internal contradictions, and handle emergencies at critical moments.

And the distributor of a single brand has a weaker market competitive advantage, so we must make full use of the collective power. Cooperate with some partners without conflict of interest to form an inter-brand alliance, which can deal with the problem as a whole team. For example, unified negotiation and entry, free delivery, support for promotional activities, personnel management, etc., the various projects coordinate with each other, help each other, and jointly support the downstream distribution outlets, so that the advantages of resources can be fully gathered in order to generate greater deterrence and more save resources. ^[1]