Cooperation Between Distributors And Manufacturers

How do dealers make manufacturers rely on themselves?

In China, there seems to be a difficult contradiction between manufacturers and distributors.

Manufacturers want dealers to be more loyal, dealers hope manufacturers will provide greater benefits and benefits.

Some manufacturers have begun to have the tendency to merge and retail terminals, such as BMW's acquisition of 4S stores in Europe.

Under such a tendency, how should dealers operate?

Get rid of the simple mentality of making money.

For dealers, customers are their most valuable assets.

Therefore, dealers should rely on brand products and distribution services to meet the needs of consumers.

Through long-term "monopoly" of these consumers, to achieve a win-win situation between themselves and manufacturers.

In this process, we must get rid of the simple psychology of making money, and regard it as our goal to satisfy and manage consumers.

In essence, the intermediate channel provides not the final value, but the indirect value for the ultimate value of the brand enterprise, and the real asset is the customer who is mastered.

The effective management of these assets is not only the common interest of manufacturers and distributors, but also the chips that dealers can win the support of manufacturers.

Therefore, a high standard distributor should know his market well and manage and control it effectively.

At the same time, dealers should have a clear understanding of the total market volume, the potential sales potential of the product, and the state and quantity of the main competitors, so as to ensure the effective completion of sales tasks.

Three abilities for dealers to win

At the same time, dealers must win the dependence of enterprises, and must cultivate three basic abilities.

First, the ability to approach the market.

Dealers should have a very stable customer base, so that manufacturers can greatly reduce the cost of market development.

Many manufacturers have to find distributors because they value their stable market channels and relationships in specific industries.

Second, customer management skills.

Dealers should be able to guarantee the return of funds and effectively control operational risks.

Just like many building materials enterprises need more intermediate channels, because local customers, especially Real Estate Company, often need credit products, and manufacturers do not have the ability to guarantee repayment.

Dealers in the local knowledge of the situation of enterprises, and even to a certain extent, can provide loans or capital support capabilities, and therefore will inevitably rely on manufacturers.

Third, brand building and promotion.

Dealers often need to operate independently, like in the automotive industry, they need cash to purchase and bear logistics costs, and in fact bear the market risk of product sales.

For automobile manufacturers, they also rely mainly on channel sales rather than self built networks.

On the one hand, it is more convenient for dealers to manage nearby. On the other hand, dealers are paying their own risk. The level of risk management and control must be far stronger than that of manufacturers.

Therefore, if dealers have the ability of brand building and even exceed their own analysis and prediction, they will surely give manufacturers a sense of dependence.

Establish strategic alliance with manufacturers

It is natural that dealers want to distribute products with higher profits.

However, this profit seeking mentality may destroy the brand strategy and operation mode of the manufacturer.

Therefore, if we want to make channels for manufacturers, we must establish strategic alliance with them.

Distributors should maximize profits by assisting manufacturers to enhance their brands, expand sales scale and achieve sales of single brand products.

Therefore, dealers should also learn to choose manufacturers.

First of all, we should determine whether the manufacturer has the determination and mode to shape the brand and implement the brand strategy. Second, the dealer should take the initiative to put forward the proposal and plan for establishing the brand and shaping the strategic alliance to the manufacturer.

There are three steps to achieve this plan:

In the first step, dealers should inform their manufacturers of their strong brand market's determination according to their market analysis and control ability; the second step is to undertake a sales target exceeding the manufacturer's expectations according to the market conditions, and demonstrate the strategy to achieve this sales goal; and the third step, put forward the supporting content that requires manufacturers to provide.

This set of operation mode based on establishing a win-win strategy between manufacturers and distributors will enable manufacturers to see that it can not be achieved without relying on distributors.