Manage Distributors For Effective Sales And Growing Profits

Almost every company operates through a wide network of distributors and stockists. One of the major reasons for the same is that companies might not have that strong a potential to manage and handle a wide network of markets, and therefore it makes sense to appoint distributors to offer their products. It is in a way a strategy to secure business in almost every geographical area.

Understanding Distributors

Distributors are people who distribute goods of a company or group of companies in a specific area or zone. A distributor is the only source for dealers and retailers to purchase any specific product or products of a company for sale in that area. In general, a distributor is either appointed by the company or through a known network to sell its product/s on their behalf.

A distributor gets non-competing products or products of a manufacturer and sells them to the end-users or the customers. A distributor in most cases is also responsible to provide a range of related services like warranty service, technical; support, and alike. They are critical to any business that otherwise would find it difficult to reach target markets.

In a way, a distributor is a connecting link between the manufacturers and retailers or customers. The key responsibility of a distributor is to move the product, by enhancing the company’s exposure in the market and provide the business with the edge in terms of efficacy and speed.

How to manage distributors?

A distributor plays a vital role in boosting the production of a company to the targeted market in a big way. Distributors have a big role to play in getting the products of a company onto the shelves of retailers, along with providing exciting opportunities for a business.

Managing distributors is not all that easy as it may seem. But, with certain strategies and motivation, your distributor could be your partner in sales:

  • The Use of Proper Segmentation: The easiest and common segmentation is geographic. The distributor should be allowed the freedom to operate exclusively in a geographic area. This will keep him motivated and he will know that the business that he generates in the area, is the only one to take the profits.
  • Give Set Targets: A distributor is also an entrepreneur, who in general has no targets. It is for the company to set a target for them and ensure they achieve it.
  • Refine Channel Operations: Improper operations could be frustrating for you and as well your channel distributors. Make sure your deliveries to your distributor reach in time and he gets all the support he needs from your end.
  • Support your distributors with schemes and discounts: The money that a distributor earns through channel sales is the single biggest motivating factor for him. Keep your distributor motivated with good money by offering him incentives, schemes, and discounts, so that he sells more and sticks with your brand.
  • The three R’s: The three R’s – Reward, Recognition, and Remuneration, keep your channel distributors motivated and keep your sales moving ahead.

The message here is to effectively manage distributors by working along with them to gain the rewards. Both time and money must be invested and mutual respect and spirit should be high for a successful alliance.

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