Question

Topic: Strategy

Setting Goals For A New Distributor

Posted by ilan.abadie on 4/13/2009 at 2:12 AM ET 250 Points
Hello all,
I am about to to start a relationship with a new distributor. This distributor will be exclusive in this territory. I am currently selling in this market to small customers. What would be a reasonable target for this distributor who's responsibility will be the entire market, including these small customers we currently sell to? What is a reasonable growth per year that I can demand from this new distributor?
Thanks you all for your comments.
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RESPONSES

  • Posted by CarolBlaha on 4/13/2009 at 9:21 AM Accepted
    You get the most buy in from your distributor if the two of you make this plan together. What is the BPI of the area for this? What kind of existing biz is in the area? In addition to revenue goals, establish other milestones such as targetted accounts, # of new accounts, promotional events, etc. In sales, activity almost always equals results. Whatever goals you set, constantly review them with your distributor--- inspect what you expect!
  • Posted by Frank Hurtte on 4/13/2009 at 9:35 AM Accepted
    Message me off-line and I will send you a distributor planning sheet. I recommend that you and your distributor review it quarterly.
  • Posted by michael on 4/13/2009 at 12:37 PM Accepted
    Ilan

    It depends. Is it someone who is already selling and has a book of business he/she can move? If that's the case, ad 50% to what they say they can do...cause they're gonna low-ball you and they should. It's business.

    If it's a huge territory (NE corridor, for example) they should be giving you a plan of attack. From that you can determine how much they can move.

    Try to decide upfront if you're taking about market share or revenue.

    Michael
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