Paint distributors business development five elements

Whether it is a single-brand operation or a multi-brand operation, dealers must distribute a product or build a super product that can build a network, maintain a network, and quickly circulate. Otherwise, no matter how strong your capital is, how strong your team is, or not How advanced it is, it is still lingering in the anxious stagnation.

Whether it is a single-brand operation or a multi-brand operation, dealers must distribute a product or build a super product that can build a network, maintain a network, and quickly circulate. Otherwise, no matter how strong your capital is, how strong your team is, or not How advanced it is, it is still lingering in the anxious stagnation.

First, the product structure

There is no matching product. For dealers, it is difficult to develop more than ever. Matching product lines or brands allow distributors to grow rapidly from weak to strong. Mismatched product lines can also allow distributors to quickly fall into the passive or dilemma of operations.

Whether it is a single-brand operation or a multi-brand operation, dealers must distribute a product or build a super product that can build a network, maintain a network, and quickly circulate. Otherwise, no matter how strong your capital is, how strong your team is, or not How advanced it is, it is still lingering in the anxious stagnation.

Some people say that dealers must use multi-brand or multi-category brands to manage their brands. I am not sure whether or not to deny them. If it is a single-brand operation, we must create a super single product. In terms of the product structure law, we must achieve 1:3:6, that is, the image product can only account for one, and the proportion of high-profit products can not exceed three. The proportion of fast-moving products cannot be lower than 6, so the risk is relatively small. If multi-brand or multi-category operations, the combination rules should basically match the 2:3:5 rule, cultivated products/brands cannot exceed 2, growth products/brands cannot exceed 3, and mature products/brands can not fall below 5. This brand portfolio model is the safest. No matter what kind of changes occur internally or externally, it will not hurt the enterprise.

At present, whether it is a big business or a small business, many distributors and friends do not understand this rule, and take profit products or self-developed products/brands as the lifeblood, causing the products to circulate unfavorably and the brand growing slowly. Only the constant investment/business Ultimately, the profit product is not a profit product but becomes a burden on the company. We see that many large businesses are very bright on the surface. However, from the perspective of the quality of downstream customers, they are very poor. They are constantly looking for business/changing business, increasing the volume of transactions, and killing countless small distribution companies. Business.

Second, channel network

What is the dealer's responsibility? Is to sell their own products to the retail terminals in the market, and serve them well. The sales network controlled by the dealer is the primary condition for the company to choose a dealer. The more complete and systematic the channel network is, the more systematic the dealer is in the area of ​​his or her business, and the higher the position in the mind of the manufacturer, the greater the sales probability.

Dealers should avoid the following four pitfalls when setting up their own channel network:

1. Is the bigger the better?

Many dealers are just starting out, they are eager to position themselves in the total generation; do not consider their own economic strength and operational capabilities. Considering that the distribution area has been expanded, the probability of sales has also increased. Wide variety of thin income, how much can be a bit harvested. In fact, the actual effect is not the case. If the distribution area exceeds the scope that one can control, one is likely to cause the waste of limited resources and the bottom of efficiency. Second, it is difficult to achieve the goals set by the manufacturers and it is difficult to obtain strong support from manufacturers. Third, with the advancement of the factory's market operation, the half-baked market you operate will be divided out and become the result of others' wedding dresses.

2. Is the network as full as possible?

Many dealers are accustomed to flowering in all directions and all systems do. But the effect is counterproductive.

There are three main reasons: First, insufficient capital reserves cause a shortage of liquidity. Second, the characteristics of the product structure determine that some channels and channels are too costly to operate. The third is that the distributors' social public relations capabilities have factories. The operation of certain channels and social resources are not enough.

3, the thinner the better?

Many dealers are trying to win over distributors and make their profits lower and lower, even flat out, earning manufacturers rebates. Its purpose is twofold: First, small profits and oversales, profits are thin, but the amount of money still make money; Second, this product does not make money, but distributors help sell other money-making products. However, in actual operation, there are still many drawbacks to this type of operation: a dealer must seize the opportunity to earn the money. For some products that are on the rise, the distribution of profits will be much lower, it will miss the opportunity to make money. Second, the distributors have developed a habit of bargaining and they will resort to prices. Three will cause manufacturers not to slow down. Disruption of product prices is easily subject to factory penalties.

4. Is it better to control the force?

Whether it is the initial stage of the construction of the network or the later stage of maintenance, the distributor is not the better the ability to control the network, but the firmer the better. Especially in the initial stage of the settlement, it is very important that each point falls there. This requires the dealer to have a big picture. The interval between points is appropriate, and the point-to-point line is connected. The dealer's net is spread out to get it back. This requires a solid partnership with each point of sale.

The control power of the network does not stem from strong binding forces, but from the balanced distribution of outlets, product matching, profit distribution, and the availability of services.

The downstream network is very simple. Whoever has high profits, who's products are easy to sell, and who has a good customer relationship will be able to continue with whom.

Third, capital flows

In terms of business and business, the two essential conditions for dealers are: First, the network and second, capital.

The distributor is located in the intermediate link between the factory and the terminal. Now the general factory requirements are spot cash, and there are few credit lines. Most retail outlets have accounts receivable. The dealer's financial strength often determines its scale of development. In order to maintain the smooth flow of funds in the business, we can maintain the normal operation of business activities. Dealers should pay attention to the following points in keeping the cash flow unblocked:

1. Control the number of operating products. Many dealers suffer from “great greed”; the more products they manage, the better. Dealers believe that: a number of products, customers can make full use of resources. Second, delivery costs will be reduced. Three will increase new sales opportunities. But too many varieties, back to distract your operating capital and attention, when your core product's advantage is weakened. Dealers should do their best to manage their product varieties. Sometimes 1+1 is not necessarily greater than 2.

2. Selectively enter a channel system with a long billing period. From the factory's point of view, it is hoped that its products will enter all the channel systems in the distributor's business area. But dealers must examine it. Inspect the creditworthiness, account period, and business status of the settlement and conduct an effective assessment. The short reconciliation period, good business dealings, and shopping malls can be given priority. The specific number of homes must be determined according to their financial status and risk factors. Leave room for yourself. When there is a problem with your funds, the manufacturer does not consider how many of these factors you have overpressed your business.

3, more cash to operate some cash spot terminal shop. Small and medium sized retail outlets in various regions operate in cash. More operations at these stores may increase transportation costs, but the turnover of funds is fast. As long as the dealers do a good job, such a large number, the monthly sales volume is also very impressive.

4, do inventory management. The operation of dealers is not hoarding, and the rapid turnover of funds is sometimes more profitable than sudden profits. Therefore, if distributors manage inventory, they must reasonably classify inventory. Reasonable stocks are divided into three categories. First, fast-moving products and low profit turnover stocks can be enlarged. The higher the purchase volume is, the higher the profit is. The second is that profit is high, dynamic growth stocks are in stock, and such stocks are fast. Fast-forward, absolutely no pressure on the goods; Third, high-profit, slow-moving long-tailed stocks, such stocks are no matter how good the policy is, and will not resolutely advance.

5. Establish an effective receivable management mechanism, establish a customer credit system, and reduce business risks.

IV. Vendor relations

The development of dealers is inseparable from the enterprises. The dealers and manufacturers establish a good cooperative relationship, which is very beneficial to their own performance improvement, profit return, channel improvement or their own development and improvement.

The relationship between dealers and companies is both a cooperative and a game. Dealers should be good at using this relationship and seek maximum benefits and progress in cooperation with manufacturers.

Manufacturers must understand each other and communication is essential. The dealer's execution at the tactical level must be coordinated with the company's long-term planning, and be good at using and integrating the resources of the upstream manufacturers to enhance their own efforts to establish a terminal network. Under the background of the transformation of new channels, manufacturers hope that the dealer's business ideas and corporate philosophy are highly synergistic, and that they can cooperate with manufacturers in the channels and terminals. Only in this way will manufacturers give distributors more support and investment. Therefore, distributors must maintain a correct attitude and work closely with enterprises to use their advantages in resources to jointly manage and operate networks with manufacturers, bringing a truly win-win situation for both parties.

With the help of manufacturers, dealers also need to be good at making good relations with manufacturers' resident agencies. At present, the remote management adopted by major manufacturers for their resident agencies cannot always be comprehensive. Most manufacturers' monitoring systems are not in place, and it is impossible to check whether all resident agencies are accurately executing the instructions of the manufacturers. However, distributors can take advantage of their familiarity with geography, customs, habits, etc., and form good cooperation and close relationships with personnel of resident agencies. They can give the greatest help and advice in formulating market strategies and closely cooperate in business execution. Since the manufacturers’ policy implementation initiative is basically in the hands of the resident agencies of the manufacturers, the standards of policy scrutiny and the personnel of the resident agencies have the final say. Handling the relationship with the resident agencies can largely avoid the situation of the manufacturers. Contradictions and conflicts, but also get the greatest market return.

Fifth, team management

Management is often a weakness of the dealership, but doing a good job of management can greatly enhance the dealer's ability to resist risks. System management includes terminal planning, terminal visits, terminal promotions, personnel management and assessment, information feedback, and risk warning.

The most important of these is to build a good team, which is the basis for the systematic management of dealers.

Dealer personnel management is a recognized problem. Several problems common to dealers in personnel management are: how to retain and make good use of old employees; how to manage them in place and improve the execution of the team; how to do a good job in management training and supervision , assessment; how to enhance team cohesion and so on. To solve these problems one by one.

First of all, for the old employees to solve their worries, for example, to employees to purchase pension insurance, ****, wages are more or less year-on-year growth, so that employees have new hopes every year;

Second, examine the company's system, formulate practical and feasible systems and processes, and strictly enforce them;

Third, there must be careful planning, after the implementation of the assessment, rewards and punishments, must have careful consideration;

Fourth, to reduce the impact of human factors on the company, use the system administrator. In this way, no matter how large the flow of corporate personnel, it will not affect the development of dealers, while avoiding the impact of internal small teams on management execution.

Finally, we must respect your own employees, be kind to your employees, and be good at listening to your employees' opinions, so that employees will have a sense of belonging and responsibility.