Strong Distributor Networks 

Discover how everyone can succeed!

By Arnon Amir On Oct 27, 2016

If you’re a business owner, how do you know if you have the right distributors in place? How are you managing these relationships to produce maximum results? Will these distributors enable you to achieve your revenue and profit objectives? What is the road that can be taken to make this happen the best way possible?

The road begins with finding the best distributors for your company. The distributor should have significant expertise and experience in your niche market, substantial sales and service support capabilities, strong relationships with current and potential customers and the commitment to proactively pursue opportunities to sell your products.

After a thorough application and approval process has been completed, a contractual agreement must be established to define the business objectives for the distributor. This should always include:

• Territory coverage area for the distributors
• Revenue goals that will create substantial business growth for both companies
• Pricing structures that allow distributors to compete effectively
• Escalating discount schedules based on performance, to create additional incentive and sense of urgency to generate revenue
• Payment terms
• Additional business terms and conditions

The commitments manufacturers demonstrate to their distributors is invaluable in empowering and motivating distributors to perform at a high level. This commitment should come via:

• Maintaining Contacts and Communication. Ongoing communication between the manufacturer’s and distributor’s management teams will keep the business moving forward. Additionally, the relationships developed with the manufacturer’s customer service and technical support teams will ensure that delivery deadlines are met.
• Marketing and Sales Aids. These will help the distributors to position the manufacturer’s products, services and value proposition in a positive light and create more sales opportunities.
• Collaborating on Sales Calls. Participating in sales calls with the distributors’ sales people will demonstrate the manufacturer’s support and position the company as product knowledge experts to end users.
• Earning Mutual Trust. Manufacturers will earn their distributors’ trust if they respond with on-site assistance to resolve customer problems without hesitation.
• Having an Ongoing Voice. Creating an Advisory Board of key, selected distributors is an ideal way for a manufacturer to demonstrate continuing commitment to their distributors.

About the Author: Arnon Amir is president of GrowthPoint Business Consulting. He has over 30 years of sales leadership and business development experience.

 

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