Bad Management Can't Make Money.

Some dealers think that as long as the registration, shipment, purchase and inventory are all the contents of inventory management. In terms of purchase, people agree with others and see that others sell well, but they also want to buy goods, but do not consider whether products meet their own needs. For inventory management requirements, some dealers still stay on the inventory check, as long as no less goods do not lose the goods on the line.

You are all OUT! Inventory management is not a simple matter. How can we manage it in order to manage profits?

Classification of existing products

　 The product of the agent must be identified.

Star products refer to products with high profit margins and high market share. The strategic brand of an enterprise often has such characteristics when it is just introduced into the market. Because, on the one hand, the profit margins of new products are relatively large; on the other hand, dealers can get good sales volume with the help of large scale brand communication.

Mature products, characterized by small profits and quick turnover, refer to products with low profit margins and high market share. Generally speaking, with the continuous development of channel drive, sales volume is growing and profit margins are becoming more and more transparent. The original Star products will gradually change to mature products. Mature products sell well enough to achieve natural sales without additional investment. Moreover, mature products can ensure the cost of running the company, provide cash flow for enterprises, and support the healthy development of other products.

Niche products refer to products with high growth rate and low market share. Dealers have this type of product, not to pursue sales, but to earn profits and maintain customer relationship.

Inventory products, also known as declining products. It is characterized by low profit margin and low market share. Not only can not bring benefits to enterprises, but also bring pressure on capital and inventory.

　 We should adapt ourselves to the situation and seek development.

The actual situation of distributors is different, the specific strategies in product management are also different, but the guiding principles are the same, which is to manage and adjust according to the development direction of various types of products.

The development trend of all kinds of products is summed up. The development direction of star products is to become mature products, which requires dealers and enterprises to control the market price of products and ensure the rationality and stability of the profits of all sectors of the channel. If these two problems are not handled well, the star products will be reduced to stock products because they are not profitable. "Drinking one brand a year" is a true portrayal of the star products in the liquor making industry as an inventory product.

The development direction of mature products is converted into long sales products, so dealers can maintain control over the channel. The key to transforming mature products into growth products is to maintain reasonable channel profits while investing more in consumer cultivation, so that consumers can recognize products and form a sense of purchase.

Niche products are mainly for profit and safeguard customer relationship. If we can enhance brand awareness and create a consumption atmosphere on the basis of ensuring these two points, niche products can also develop into star products. But if niche products ignore the profits of core customers in the pursuit of sales, they may backfire and make products unsalable.

The way to deal with inventory products is to dump goods reasonably, and to sacrifice profits if necessary. Because the cash flow brought by inventory clearance and the cost of saving warehousing can create greater profits.

Based on the above analysis, we will examine the existing product structure of dealers: if there is no star product, then we need to add a strategic leading product of enterprises, clean up inventory products as soon as possible, and use the funds to be used for the cultivation of star products or mature products.