Tools to stimulate partner sales Author: PriceCop Friday December 7th, 2018 • Category: Blog • Updated: Friday April 4th, 2025 Large manufacturers typically use several sales channels, such as retail, online, and distributors. Each channel brings its own revenue, but the bulk of sales usually come from dealers and distributors. However, it’s not as simple as it seems. Sometimes partners need motivation to deliver better results, which in turn brings higher profits for the manufacturer. Sales promotion is one of the most important parts of marketing. It involves using various techniques to influence partners to increase sales. Content List 3 Important First Steps Price-Based Promotion In-Kind Offers Active Offers Other Methods Don’t Forget What Matters Most 3 Important First Steps One day you wake up and decide, “I need to motivate my dealers to achieve better results” and start brainstorming the methods you need. This approach won’t produce the desired results. It’s crucial to take three simple steps first: Identify your goals. For example, increase sales volume, expand shelf space in retail locations for your products, broaden your advertising partners, or strengthen brand influence. Choose who will be responsible for sales promotion. Typically, this task is assigned to the advertising and sales department. Sometimes, external firms are involved. Develop a plan specifying the budget, terms, necessary resources, duration, and the sequence of actions. The sales promotion process can be short-term or long-term—for example, limited to just one season. Price-Based Promotion In any case, you should focus on the end consumer. If customers see good value, the dealer will be able to sell more. This is why price-based promotions are considered especially effective. Customers respond particularly well to discounted products. In 9 out of 10 cases, they’ll buy a similar product if it’s discounted or cheaper. However, they may think twice if a particular item is on sale too often. The main drawback: the manufacturer doesn’t build a pool of loyal customers, because people only buy during promotions. The advantage: a quick impact. You can literally counter a competitor’s price war in the blink of an eye. This method is especially effective when cost is the deciding factor for the buyer. The key rule is that the discount should be substantial enough for the promotional offer to be attractive, prompting the consumer to tell their friends about it and potentially return for another purchase. In-Kind Offers This also applies to dealers. For example, you could offer a bonus for meeting a specific sales target. Shoppers, on the other hand, might be given a chance to try your products. You often see luxury perfume samples or tastings of expensive new food products. The main goal of this approach is to let buyers experience the quality of the product. At the same time, dealers become motivated to increase sales, knowing they’ll receive a reward at the end, in the form of an agreed-upon sum. Keep in mind that the bonus has to be appealing. Active Offers This requires active involvement from partners—for instance, lotteries, games, and contests. This format is only suitable for manufacturers with a large dealer network and many distributors; otherwise, who’s going to play? For example, you could hold a contest for the best sales results or design an interesting lottery. But it’s crucial that the reward be substantial. Nobody wants to put in extra effort for a prize that doesn’t excite them. Other Methods In principle, every manufacturer can devise its own way of motivating its partners. The key is that it addresses the following objectives: encourage increased sales, incentivize orders for larger batches, and share expertise in sales promotion. Possible methods include: A discount on the product when a specified sales volume is met. For example, sell 100 T-shirts and get a 20% discount on each. Receive N products for free if you purchase a certain quantity. Organize corporate events and off-site meetings where you can share knowledge with dealers and show them how to sell more. Offer marketing support: provide partners with the necessary advertising materials. Manufacturers are increasingly using dealer programs, where partners receive certain rewards at the end of the program. Don’t Forget What Matters Most The most important thing is control. Increasing sales shouldn’t be accompanied by dumping. This requires ongoing monitoring. For instance, in PriceCop, you can access all the necessary tools: price monitoring, availability and promotion monitoring, automatic notifications, price history tracking. To find out exactly how this platform can help your business, fill out the form: