With the increase in market-to-market ratio and the gradual maturity of the market, the shrinking of product profit margin seems to be a trend, but the key issue is that due to the reduction of profit margins, the enthusiasm of distributors is reduced, and it is easy to provide opportunities for other brands. Therefore, during the publication of the Changsha Forum, the reporter specially communicated and exchanged with several dealers who made wine, and found the symptoms of the decline in profits of several products. At the same time, under the guidance of expert teacher Li Youjun, we also concluded Several methods of “seeing the move†are used to improve the enthusiasm of distributors.
Symptom 1: Not making money, but narrowing profit margins
By analyzing the distributors, you will find several aspects that affect the profit of the business: the unit profit space, that is, how much money can be earned for each product sold; the overall profit, that is, how much money can be earned daily, monthly, and yearly; In the network situation, is it possible to establish a large sales network as soon as possible and as smoothly as possible.
Antidote: To understand these points, we can take the following specific measures according to the actual situation:
In the first place, increase the unit profit of the distributor in terms of the product itself. The methods are:
1. Directly reduce the supply price;
2. Indirectly reduce the supply price through promotion;
3. Increase unit profit through regular rebates per box.
Among them, there are four ways to indirect price reduction: one is to give away the product directly; the other is to give other specifications under the same brand or even different types of products, such as large packages to send small packages; the third is to give other brands or even different types. Products, such as a brand of wine to send another brand of wine or beverages; Fourth, non-food products, such as many companies like to give umbrellas, children's toys. There are two ways to return the regular rebates per box: first, regardless of the sales volume, a certain amount of rebate for each box of products will be given upon expiration; second, the sales volume will be set, and different amounts of rebate will be given to each box of products according to the level of the can. .
Second, increase the overall profit of the distributor in terms of the product itself. The methods are:
1. Increase the sales of distributors by promoting promotions for consumers, thereby increasing their overall profit.
2. Increase the overall profit by rebates at the end of the year;
3. Increase distributors' sales by helping distributors expand their sales network to increase their overall profitability.
The rebate at the end of the year is actually a part of the profits that the manufacturer or the first-tier merchants bring to the distributor. And helping distributors expand their sales network is a method that many manufacturers and distributors tend to overlook. In fact, this method can increase the distribution depth of the products while increasing the sales volume of the distributors, and can also increase the loyalty of the distributors. The branch manager of a liquor company found that due to vicious competition, the profit margins of county-level distributors have become very low, but most distributors still have much room for development in network construction. So he used various methods to help and guide distributors to expand their sales channels and establish sales networks as much as possible, such as expanding the distribution of townships and towns, and increasing retail outlets in urban areas. As a result, although the unit profit has not increased, as the sales volume of the distributors has gone up, their overall profits have multiplied accordingly.
Third, increase profit margins by indirectly increasing retail prices
In today's highly competitive market conditions, it is not realistic to directly increase the retail price of a product, but companies can indirectly increase the retail price by introducing new or external packaging specifications, and then allocate some space to the distributor.
Symptom 2: Lack of belonging, whoever is profitable, who will push
The second batch of distributors are generally receiving goods in large quantities, sporadic distribution and wholesale, and earning a limited space profit. Therefore, for the second batch of distributors, whoever has a large profit will push the product, while other products can be sold and sold. If the profit margin is reduced, the enthusiasm will decrease accordingly, and no loyalty will have no sense of belonging.
Antidote: First, the second batch of distributors.
1. In the form of a consortium of agreements. The second batch of distributors will be included in the manufacturer management system. For example, through the distribution of the spreads between the distributors and the second batch of distributors, and the agreement on the distribution of returns, the second batch of distributors will be included in their own management system. The policies are transparent, the promotion is consistent, and the promotional items are decentralized. Not only did the second batch of distributors have a sense of belonging, but also mobilized the enthusiasm of the second batch of distributors.
2. Marketers enter the second batch of distribution channels. That is, through the adjustment of the division of labor of the marketing staff, the marketing staff can go deep into the second batch of distribution channels while assisting the dealers in the second batch of distribution channels, and assist the second batch of distributors in channel promotion, channel dredging, goods diversion and terminal maintenance and management. The narrower profit margin of the products and the increase in sales volume also increased the enthusiasm of the second batch of distributors.
Second, establish a regional protection system.
Through the strict division of the two batches of distribution channels, the formation of an independent and closed marketing area, and according to the market conditions and the requirements of the two batches of distributors, under the principle of consistent promotion, the fine adjustment of spreads and promotions, so that the second batch of distributors Finding the feeling of operating independently is also a way to motivate dealers.
Third, establish a second batch of distributor upgrade system.
In order to establish a different level of upgrade system for the second batch of distributors, the purpose is to give the second batch of distributors a good prospect plan, thus mobilizing their enthusiasm. If based on market conditions, based on sales volume, distribution rate, new product listing rate, sales growth rate, and payment recovery, establish a distributor's upgrade system and assessment methods to enjoy different treatment or return standards.
4. "It is better to teach people to fish than to teach people to fish."
Establish a training system for the second batch of distributors, and provide training opportunities for the second batch of distributors to help the second batch of distributors grow and mobilize the enthusiasm of the second batch of distributors.
5. Improve their enthusiasm through customer relationships.
Although the business is mainly for profit, but people are talking about feelings, usually communicate by telephone, the festival greetings by phone or text message, often go to the distributor to go and chat. Sometimes, talking about business is better than just talking about business. If the manufacturer or dealer can consciously improve the customer relationship, the enthusiasm of the distributor is obvious.
Symptom 3: The lack of planning in the early stage has caused the latter to “do nothingâ€.
In the face of relatively stable consumers, in order to open up the market and to survive, it is easier for the retail terminal to fight the price war. The simpler and more effective weapon is to fight the price war with the best seller. Due to the vicious competition of omni-channel, it is unrealistic for mature products to maintain high profits in a competitive market environment. Due to the lack of market-to-market planning, when the profit of the best-selling products declines, the company does not have enough profit margins to supplement it, so it will cause the company to “do nothing†when it encounters similar problems.
Antidote: In the first place, the marketing objectives of manufacturers and distributors should be consistent. As a manufacturer, the first thing that a general company considers is that the market is selling more and earning profits from scale. Most dealers consider making profits from a single product, which creates a contradiction in market operations. In the early stage of market promotion, manufacturers rely on distributors' distribution and promotion of two batches of channels and terminal retailers, so they will develop a strict and relatively favorable channel profit distribution system for the market, because at this time in the market of dealers and manufacturers. In terms of status, the manufacturer is in a weak position. Once the product is in a strong position in the market, the manufacturer is in a strong position. In order to expand the market share, the manufacturer will consider the profit margin of the channel in exchange for a larger market share, through various promotions. Means or mandatory requirements, the channel profit is reduced to a reasonable range. Therefore, reasonable arrangements should be made in the early market planning.
Second, do a good job in the distribution network layout. Many manufacturers did not make a good layout for the distribution network due to planning problems during product promotion, resulting in price confusion after the channel profit margin was reduced, which in turn affected the stability of the product price system. So pay attention to the following aspects:
1. First of all, we must attach great importance to the planning of channel profit, and we must make a medium- and long-term plan for product profit space.
2. Strengthen channel planning. Reasonable layout of the channel network, that is, to take into account the market coverage, sales volume, and more to consider the stability of the market price, to avoid cross-overlapping of the network.
3. Do a good job in the promotion of promotional activities. Promotional promotion activities should be targeted. According to the characteristics of the channel and the characteristics of the next-level dealers, the promotion activities must have a firm principle. Once the activities are over, immediately restore the original price, and the strength should be properly grasped. It is not enough to be attractive enough to the distribution network. For different channels, different customer division channels to do the promotion of the design of the promotion, the promotion of promotional activities, as long as the manufacturers and first-tier dealers will be determined, the activities are implemented in place, the market will not be chaotic, the market sales price, channel profit is followed by manufacturers The intention to go.
Third, strengthen market management and service work. When the profit margin of the market has been limited and the profit of the dealers is already very thin, in order to maintain the steady growth of sales volume, it is necessary to strengthen the management and service work for the market, and regularly return and communicate with the sales outlets, and timely communicate with the major distributors. Give a certain channel maintenance award, and even let some of the network let it develop, and seize the second batch of large households to seize the basic sales volume of the market. When the market profit margin is insufficient, many markets will strengthen management, and the channels will continue to be kept in constant supply. The short-term promotion will repress the goods and strengthen the service and communication. The market sales volume will not have much twists and turns. (Zhao Chuanping)
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