(Business Topic of the Week) Manufacturers VS Distributors: How to Achieve Mutual Benefit and Win-Win?

Some people say that the relationship between dealers and manufacturers is fish and water, spear and shield. Fish and water are said because dealers and manufacturers can't live without each other. Manufacturers need dealers to bring products to market, and dealers need to sell products to realize profits. Both sides are dependent on each other, and their lips are dead and their teeth are cold. Spears and shields are said because both sides keep fighting while using each other. On the one hand, manufacturers are always ambivalent about dealers. The strength of dealers is too weak, which is not conducive to the promotion of manufacturers' products; On the other hand, manufacturers are worried that dealers will betray themselves in turn after they become stronger and bigger, so they have come up with many ways to "control" dealers. But the fact is that in the fierce market competition, dealers or manufacturers have to rely on their own efforts.

Knock on the door of the market, make a lot of money alone, almost daydreaming. Then, under the premise of consistent strategic interests, manufacturers and distributors should choose their own partners in good faith and carefully, seeking common ground while reserving differences. Dealers strive to open up markets and channels for manufacturers, while manufacturers follow the trend, push products to the market, build brands, and finally achieve a win-win situation for dealers and manufacturers.

Several metaphors of the relationship between suppliers and distributors;

The relationship between suppliers and distributors is both complicated and simple. The complexity lies in the impermanence of the market, and the rapid fluctuation of interests leads to the plot of the two directors' separation and integration. Simply, a win-win model can ensure the harmonious coexistence of both sides. As far as the current relationship between suppliers and distributors is concerned, it can generally be compared to the following five relationships: purchasing relationship: it is good to have money, but it doesn't matter if you don't have money.

Marriage: Binding to sign a long-term contract is exclusive from beginning to end.

Cohabitation relationship: that is, in an industrial chain, there may not be financial ties, but no one in the whole industrial chain can do without their relationship. This relationship is different from that of lovers. It's a cohabitation relationship.

Half-breed: cooperation with dealers does not make money, survival is the first need, and the relationship between buying and selling is the pursuit of interests and the need for survival and development. Manufacturers need a relationship of interdependence and support. Many manufacturers have made many dealers.

[Main report] P&G dealers exchange blood.

Recently, there have been frequent reports in the media that P&G has made a big change in its mainland dealers, and dealers in East China and South China have been "kicked out" one after another. Even some dealers who sold P&G products for more than 60 million yuan last year failed to negotiate with P&G.. Some dealers said that at the end of last year, P&G had put forward the requirement of "joining", which was embodied in the rigid stipulation that dealers must operate P&G products independently, set up independent accounts, operate funds independently, salesmen work independently and P&G products have independent warehouses. Most dealers in the daily chemical industry adopt multi-brand operation, operating many brands including Procter & Gamble, Unilever, Kao and Colgate. Many dealers said that they could not meet the requirements put forward by P&G because they felt that giving up the sales of other brands and just doing P&G would not bring more benefits to the dealers. Of course, many dealers have accepted P&G's "franchise" requirement, because the sales ratio of P&G products is very large. At the same time, P&G also began to recruit new dealers on a large scale. It is reported that this recruitment tends to enterprises with strong financial strength and good government relations. For new dealers, P&G requires assets mortgage of not less than 5 million yuan and working capital of not less than 4 million yuan. At the same time, P&G also intends to recruit fewer dealers in the daily chemical industry and accept dealers from various industries, mostly automobiles and real estate. In this regard, some analysts believe that the reason for choosing "amateur" is that P&G hopes to control dealers to a greater extent. (Sarah) [Expert Interpretation] How do manufacturers develop harmoniously with distributors?

Dealers are limited in strength, mercenary, small in network and fragmented. How to effectively manage dealers has always been a headache for domestic enterprises. However, if manufacturers can make rational use of some measures, they can also stimulate the enthusiasm of dealers. With reasonable profit distribution, sound channels and spiritual encouragement, manufacturers and distributors can cooperate and win-win. 1. Reasonable regional division and selection of good dealers. For example, in the process of recommending new dealers by old dealers, a reward system can be adopted to let old dealers recommend good dealers as much as possible. 2. The establishment of rebate system. When implementing the rebate policy, the following factors should be considered: the rebate level of the industry and competitors, the product life cycle, the exchange method and limit of the rebate, and the time of the rebate project. 3. Goods escape management. First of all, we should formulate the punishment procedures and standards for goods smuggling, and sign a market management convention with dealers. Secondly, pay attention to different situations and treat them separately. If it's easy, cut the gordian knot. If it is illegal, it will be expelled. If it's difficult, cut the meat with a rusty knife and take your time. 4. Dealer identification code. It is suggested that the anti-channeling code should be printed on the smallest unit of the product. At the same time, considering the cost, there is no need to call every time a dealer wants goods, such as a dealer who likes to smuggle goods. 5. Establish market supervision department. Directly presided over by the sales director, it mainly checks market violations, including problems complained by dealers, and takes the initiative to deal with problems when found. 6. Establish a dealer association. Guilds must formulate a set of strict and enforceable penalties for violations, including the application procedures for designated membership and withdrawal, the responsibilities and obligations of members, and the dues payable. In order to safeguard the interests of guild members and strictly control the market circulation order. 7. Product quota system. The number of products of dealers should be controlled, such as restricting best-selling products and not restricting non-best-selling products; Restricting circulation links does not restrict terminal sales; Restrict mature products without restricting new products; Restrict smuggled products, not products that are not smuggled. 8. Dealer incentives. For example, incentives for dealers can be carried out by holding conferences, awarding prizes to dealers, and commending senior executives. And if the dealers do a good job, they can have the opportunity to discuss the development of the enterprise with the president and hold a newsletter for dealers.

Comments provided: Mei, the sales director of Meichen Daily Chemical Company, presided over the formulation of the management policy of Meichen Daily Chemical Company's "Qirixiang" brand distributor in 2004, which completely reversed the situation that the enthusiasm of distributors was not high before.

The real big dealer must be an entrepreneurial dealer. Entrepreneurial dealers are usually so big: First, when you start to be a dealer, you must do it yourself-it is impossible to really get familiar with the market without doing it yourself. Second, with the expansion of the scale, we must bring out several right-hand men. Through their own words and deeds, bring out the first batch of teams-the team can only grow when it grows. Third, expand the scale to a certain time, set up corresponding organizations, recruit professionals, and implement the division of responsibilities. Because if everything is left to their right-hand man, they may jump ship and take customers away, and the loss is too great. The advantages of specialized division of labor are: first, everyone only does what they are best at; Second, everyone only cares about some things. Fourth, set up management personnel and supervision institutions. The scale is too large to manage by yourself, so it is necessary to implement hierarchical management. After hierarchical management, you may not feel at ease. You should set up a supervision organization to check the work of managers and corresponding institutions. Fifth, formulate the corresponding system and manage it according to the system. When I was young, I put everything in my head and arranged everything in half an hour. At this point, no system can be more efficient. After the scale is expanded, it must be managed according to the system, and the boss himself must abide by the system.

Comments provided by: Lei Sun [actual voice], CEO and consulting director of Guangzhou Youshi Information System Co., Ltd., lecturer and dealer of Guangzhou Yice Learning Institute: It is very important to look at the brand.

Only by choosing good manufacturers can we make money, so dealers are very cautious in choosing manufacturers. When choosing a manufacturer, the main issues to be considered are the development potential of the brand, product quality, product line and whether it has the conditions and strength of after-sales service. Of course, the dealer should have a certain understanding of the current situation of the other company and the advantages and disadvantages of its products, and know the market of the industry like the back of his hand, so even if his current development situation is not ideal, the manufacturer will be willing to cooperate with him. Before negotiating with manufacturers, dealers should first have a clear understanding of their own sales channels and networks, and fully explain their true strength to suppliers to avoid misunderstanding and distrust between the two sides in the future. Secondly, as a strategic partner of the manufacturer and representing the image of the manufacturer, the distributor should actively cooperate with the marketing activities of the manufacturer, keep abreast of the local market dynamics, feed back the information to the manufacturer, do a good job in regional marketing, and strive to maintain and enhance the brand image to achieve a win-win goal. Dealer: It's very important to look at the brand. Shanghai Anxin Floor Li Factory: Strength is the first condition to attract dealers.