Innovating Dealer'S Profit Mode: Changing The Way Of Thinking

Changing the way of thinking in distribution

The key solution is to change the way of thinking of dealers, recognize the current market situation, take a rational view of the operation of their businesses, adjust their profit models according to their own conditions, and the important thing is to make money.

As a dealer, it is natural to earn money from downstream customers. In fact, expanding the way of thinking, dealers can not only earn money from downstream customers, but also earn money from peers and earn money from upstream manufacturers. Here we focus on how dealers can make money from manufacturers.

There is a precondition for the manufacturers to earn money. There is a reverse trade between the manufacturers and the dealers. That is, only the manufacturers sell products to dealers, and the dealers receive money. No distributor can sell the products to the manufacturers and collect the manufacturers' money.

Before that, many dealers were also making money from manufacturers, which was only realized through the way of keeping goose feathers and withholding. Some dealers have been immersed in the profit mode of making the manufacturer's market expenses. This is a bit like some stores have put the source of profits in the collection of suppliers' fees rather than the profits of retail businesses themselves, which is a bit of a cart before the horse.

However, making money pays more attention to a sustainable development. The way of retaining factory expenses is to earn money. The question is how long it can earn. Moreover, this enterprising way of management and vision will also hinder the dealer's market operation ability and competitiveness.

But some dealers have a more long-term view. They can bring something under the table to the table to earn the cost of the factory openly.

But the core of this profit model is to earn money from manufacturers by helping manufacturers save money. That is to say, dealers replace some of the market functions of manufacturers, and to a great extent help manufacturers save relevant investment costs, and dealers rely on dealers' knowledge of local market, and on this basis, they can design more reasonable or more targeted marketing activities than manufacturers, and dealers can fully invoke their existing resources. Therefore, some of the market activities undertaken by dealers are much higher than that of their manufacturers.

After this idea is launched, we can find that there are many factories and marketing expenses for many manufacturers, such as new product marketing activities, terminal propaganda and packaging activities, customer relationship network maintenance, sales channel construction, etc., distributors can often get more profits than manufacturers, and at the same time, they also bring new profit models to dealers, and help them to gain profits by saving market costs.

Try to earn money from peers.

From the manufacturer's point of view, the fundamental purpose is to ensure sustained and stable sales. If we can reduce the cost to a certain extent under the premise of ensuring the same effect, it is possible to consider contracting some market activities to dealers. Of course, there must be a link here, that is, manufacturers must have a system for evaluating the effectiveness of the market activities undertaken by dealers, so as to ensure that the way dealers adopt is within the framework of the manufacturers. The overall cost is within the budget. However, generally speaking, supervising others is always much easier than doing things themselves.

Similarly, with this idea, the money of the peers can also be made. Dealers understand dealers best, and they can also find that as distributors, they have problems and needs, and try to meet the needs of these peers, that is, there is profit. If the solution of dealer problems is formed into a system, the industry can achieve sustained profits.

Moreover, they can earn money from their employees, go beyond the simple employee employment relationship, and turn their employees into bosses to a certain extent (for example, encourage employees to contract projects or develop their employees into their own offline customers), or turn employees into resource supply providers (for example, recommending their employees to factories for work).