How Can We Reduce The "Two Batches" Of Agents?

Terminal is king, the two batch is irreplaceable.

80% of terminal services and coverage must rely on two batches of agents. This shows that its role is difficult to replace.

The distribution process of traditional channels is the manufacturer -- agents -- the two batch.

Under the influence of the marketing concept of "terminal is king", agents have stepped into the terminal. Following the trend, they find that it is very difficult to snatch the limited terminal resources under the situation of excessive competition, and the growth of profits is also difficult to offset the increase of expenses.

So, in recent years, agents have reclaimed the "two batch".

Why do agents need to rely on the "two batches"? Because no agent can completely cover and serve all the terminals in the market under their jurisdiction. The terminal that can cover and serve is only a terminal with a certain scale, influence and geographical location, which accounts for only about 20% of the total retail terminal.

So, what is the solution to the remaining 80% of terminal services and coverage? Agents are obviously powerless, because they need to spend a lot of human resources and material resources.

At present, no agent in China has the ability to integrate the above resources.

At this time, the role and significance of the "two batches" are highlighted.

The "two installment" is the fact that agents or manufacturers can not be extended because of their own management and services. As long as there are lots of terminals in the market, there is a need for the "two batches", and the role of the two batches is irreplaceable.

Why do we always hit the price?

In order to return the funds in a short time and make the financial situation return to normal, the two batch of merchants had to carry out "hit price".

The "two batches" can not be compared with agents in terms of financial strength, concept, scale, management and access to information. Moreover, many two batches of agents usually distribute several different product categories in a certain area because they want to maximize profits or meet the needs of downstream terminals.

When the two batch of agents has excessive inventory pressure and the cash flow is not smooth, the first choice is to digest the inventory rotation funds.

Because the two batch of agents can not occupy their limited working capital because of a product category or a brand, so it inevitably has a "hit price".

The two batch of agents broke the price in order to return the funds in a short time, so that their financial condition returned to normal.

In addition, due to the extrusion of both ends of the channel, the "two batches" do not have the core advantages, nor do they have the core resources (such as the agency of the product, the strong terminal, etc.), which doomed the group's instability and doomed their short-term profit mentality.

Therefore, it is difficult to eradicate the phenomenon of channeling and smashing prices.

Since agents are inseparable from the "two batches", how should agents manage "two batches" to stop this "price killer" from disrupting the market and channels?

Let the "two batches" keep away from the price.

The two batch of agents is responsible for marketing management or direct distribution of their employees to keep them away from prices, which is an effective management method.

Channel order is particularly important for products in mature stage. A product recognized by the market may be out of order because of the confusion of channel system, and this period is also the best time for "two batches" to flee and smash prices.

For agents, we should pay close attention to the trend of "price killer" in the mature stage of the market.

However, monitoring is only a passive way. How to take the initiative in the management market and eliminate the "price killer" to the maximum extent? Agents may learn from the practices of the following enterprises.

First, change the two batch of agents into distribution providers.

Agents can take advantage of salesmen's "sweeping Street" visits instead of two batches of agents to run orders at the terminals, thus limiting their functions to warehousing and distribution.

This mode, while stripping the price function of the two batch of agents, strengthens the customer relationship and terminal service functions of agents and terminals, and realizes the effective control of the channel system.

However, such control requires agents to have a high-quality sales force and pay higher salaries for them. At the same time, agents need to have higher management ability and strong capital strength.

The two is to pform the two batch of agents into marketing managers.

The "two batches" can be responsible for a series of marketing activities such as entering, promoting, displaying, awarding, and so on. According to the sales of products, we can get the profit sharing of products, but do not meddle in the price management of products, so as to avoid conflicts with the terminals managed by agents.