Dealer: How To Advance In The Balance Between "Profit" And "Quantity"

Profit brand or sales brand?

This is a dilemma now faced by many cosmetic dealers, because at present, the two are often Mao Dun's.

There is a widespread phenomenon in the market. It is very difficult for a profitable brand to take the quantity and push it hard. But the brand of the quantity is not profitable. The hard work is to earn the pportation cost. The profit brand and the sales volume brand are all necessary for the general distributor. The key is to focus on the actual situation of oneself, so how can we balance the two among them and earn more profits for development?

First, terminal retail dealers.

For terminal cosmetics dealers, they all know the importance of choosing profit brands, otherwise there will be no profit in the stores.

But the products with high profits are generally relatively low in popularity, the influence of the brand is relatively small, the strength of the manufacturers is not large, or they have not invested much in advertising and advertising, and they give more profit margins to the distributors, trying to make the terminal dealers actively recommend their brands to achieve the purpose of sales.

On the basis of these reasons, these profit brands are also weak in driving customers. In handling such brands, terminal distributors must have rich retail experience and strong sales promotion means, otherwise it will be difficult to sell products. At the same time, operating profit brands have certain requirements for dealers' sales ability and the reputation and strength of stores. If products fail, the products will become a pile of backlog stocks. Once the shelf life is exceeded, the products will be delivered without fear, and no one will dare to, or even put the old books in.

How about distributing low profit brand products?

Profit margins are too small to survive. Such sales brands do not have restrictions on the distribution area. Our dealers are accustomed to calling these brands circulation brands.

Because of its high popularity and great influence, its appeal to customers is stronger. Many customers are buying names at the terminal retail stores. Therefore, manufacturers do not have to give profits to dealers at the terminals. Therefore, such brands are very pparent, and the same brand Lao Li stores sell 50 Fen more than Lao Wang's stores, and customers compare it out, thus judging that everything in Lao Li's store is expensive, so that Lao Li's shop offended customers.

Therefore, the Lao Lao Wang of the terminal, in order to flaunt their own low price, almost dare not to sell the brand or even lose money for the sale of such brands.

According to the author's observation for many years, the retail outlets of the terminal have a relatively appropriate proportion in the profit brand and the quantity brand besides their own differences.

Take the cosmetic cream brand as an example, the general brand name products account for 20% to 40% of the entire cream brand. Such brands attract people's interest. Dealers do not expect them to bring in much profit. They take advantage of the brand's reputation and appeal to attract customers to the store, which is mainly for attracting people's popularity.

When a customer buys these brands by name, the salesperson of the terminal will definitely guide her to buy other products, which is why the customer wants to buy OLAY while the salesperson introduces her to other brands that she has not heard before, and profits are made.

Some brands have great strength, or after many years of development, they can provide good sales service and strict regional protection to the terminals. The brand has larger profit margins, and the customers have a high reputation and great influence. The brands such as CHCEDO, OSM and Ting Mei are also popular brands in the terminal market. They are sought after by the terminal dealers. If such brands can be incorporated into their own stores, the business of the dealers will not be very bad. Some other non famous brands become a supplement to the terminal business varieties, with high profits and relatively small volume, but they can also play a role in filling the gaps and filling the gaps. The profit brand generally accounts for 60% to 80% of the whole store brand, and the proportion of each brand in these profit brands is also different. Among these profit brands, there are also famous brands.

Some retail outlets may also have a higher profit brand ratio, which will reach 90%, or even do not know the volume of well-known brands. There are several shops in Dezhou, Zhangqiu and Yantai in Shandong. Besides washing products, they can see the famous brands of quantity. They are all non famous brands in the cream products.

These stores have such an obvious feature, that is, the local influence is very large. To a certain extent, they surpass the influence of the product brand. The local customers are very trusting to the storefront. They even think that the brand in the store is a famous brand, and what the shop girl introduces is to achieve such a state.

However, such a brand structure is far from being widely adopted by many terminal distributors. The structure of a brand depends on its own business capability.

Analysis two, cosmetics agent dealers (hereinafter referred to as cosmetics agents)

As an agent of cosmetics, the products previously distributed are clear and distinct. The agents who make non famous profit products only do terminal brands with regional protection. They often only make one or more brands, which are generally called terminal units. This is a relatively new team, which has developed since 2000; and the agents who make the famous brand quantity are wholesale, and at the same time manage many products, which can cover almost all the business categories of terminal retailers.

This group has a large number, mostly from the former State Department Store wholesale station. It relies on the variety of business to distribute products for a large number of retail outlets in a certain area.

With the development of the market, the agents who circulated have begun to make a quiet change. First, because many famous brand manufacturers seem to pay no attention to their lives and profits, they have reduced profits to a low level, almost turning them into factory porters, which are hardly enough to maintain, so they are also starting to increase some profit brands. For such agents, increasing profit brands is indeed very necessary, but we should also see that operating profit brands.