Question

Topic: Strategy

Sales Increase Strategy

Posted by Anonymous on 250 Points
Our division manufacturers a building material, and they are being sold through multiple distributors throughout the states.

Like most manufacturers, we heavily depend on our distributors. Business has been good, but there are much room for additional sales increase. If I can somehow figure out how to motivate the distributors, it would be terrific!

How can I push distributors further and increase sales without creating a negative sentiment? What are the common strategies companies implement to motivate distributors?

Your insights will be deeply appreciated. Thank you.
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RESPONSES

  • Posted by michael on Accepted
    Travel incentives have worked very well for some of my clients. If it's an individual incentive then they DON'T have to go with the whole group.

    E-mail me offline for contact information on that.

    Michael
  • Posted by wnelson on Member
    John,
    My experience with distributors is that they DO NOT create demand. You can try to get them to do it, but they are good at logistics, inventorying, order fulfillment....that said, you can't teach a pig to whistle (no offense to any distributor members reading this...it's just that we gravitate to what we're good at). Therefore, your demand creation efforts needs to be through your own efforts. This may take marketing activitie
    What is your market?
    Who are your customers?

    What are their needs?
    Who are your competitors?
    How well do they satisfy the customer needs (SWOT)
    How can you satisfy the needs better (Unique selling proposition - USP)
    How do I best reach those customers and best inform them about my USP?
    Put a plan together to reach these customers - media/press releases, trade magazine articles, direct sales, etc.

    This is probably your best method to increase your revenues!

    I hope this helps you, John. Hey, if you need more help, visit my website and/or eMail me!

    Wayde
  • Posted on Member
    Hello john.chong ,
    Your distributors play an important role on your marketing team. Giving incentives to them is great but did you ever tell them how great a job they are doing? Constant motivation comes from acknowledging peoples input in their work. Many workers feel unappreciated because their bosses never tell them how great a job they are doing. A thank you card can go a long way. Some lunch vouchers will help too. Take some time out and congratulate them for a job well do this will help boost their morale.

    Hope this helps.
    Aria
  • Posted by adammjw on Member
    john.chong,

    First of all pls explain what you mean by saying " there is much room for sales increase"? Do you mean your consumetr surveys give you grounds for such opinions or it's only based on your manufacturing capacity? If it's the latter it is irrelevant from the customer's point of view.
    Your dilemma has to be addressed from two relevent points of view:

    1. actual demand which is Wnelson rightly points out is by no means created by your distributors

    2. specific POS buyer's decision where your distributors come in

    It only means that you have to carry out your integrated marketing activities aimed at creating demand on your customers side and work out a good training, consultative sales and incentive program to support your distributors.Then and only then can you expect better sales results.

    Adam

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