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As traditional retail is dying and online sales in the retail sector are growing, manufacturers are scrambling to find new sales models. Moreover, they want to achieve better distribution results.<\/p>\n
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Today, there are four general sales models: direct, via a \u201cgeneral price,\u201d a focal or exclusive group. Each of these can be effective under certain conditions. However, none of them will deliver the desired result without constant monitoring<\/a>.<\/p>\n Content List<\/p>\n This method implies direct, personal contact between the manufacturer and the buyer, without intermediaries such as distributors or advertising agencies.<\/p>\n Here, there are only two players: the manufacturer and the buyer. And as the saying goes, a third party would be \u201cone too many.\u201d<\/p>\n For example, suppose you\u2019re a dress manufacturer. To make a direct sale, you\u2019d need to go to places where your target audience is likely to be found. Think of beauty salons\u2014representatives often drop by offering hair dyes, hair care cosmetics, and tools.<\/p>\n The representative could be an individual or a full team of specially trained people.<\/p>\n This model is effective in the following cases:<\/p>\n For this model to be cost-effective and deliver results, you must:<\/p>\n Direct sales can be especially helpful for new manufacturers just entering the market. Later on, it\u2019s usually better to move on to more effective approaches.<\/p>\n If you manage to get into a distributor\u2019s general price list, that distributor will likely be more eager to sell your products. But there\u2019s a key consideration: in reality, the distributor becomes your partner and lays claim to 30\u201340% of the profit.<\/p>\n You also have to remember that not all distributors are the same. Some are \u201cwell-off,\u201d meaning that relatively modest sums\u2014like a few thousand euros\u2014won\u2019t really interest them. Others are \u201ccash-strapped,\u201d jumping at every opportunity but rarely having free funds in circulation.<\/p>\n It\u2019s better to avoid both extremes and look for those who are \u201chungry for growth\u201d\u2014they have some free capital and are evolving at the same time.<\/p>\n On mature markets, a general price list typically accounts for 15\u201320% of total sales volume, on average.<\/p>\n This sales model involves a distributor forming a team that includes several manufacturers. For instance, they might offer an assortment of sweets from both a well-known producer and a lesser-known one.<\/p>\n As a result, the end consumer gets to try products from a relatively unknown supplier. The key here is for the manufacturer to secure favorable terms of cooperation.<\/p>\n In this scenario, the distributor partially acts as a logistics provider\u2014merely delivering the goods. Meanwhile, the supplier\u2019s team manages the actual selling. Such a model can deliver excellent results, but it also requires significant funding.<\/p>\n Through models like these, it\u2019s recommended to keep sales volume at around 7%.<\/p>\n If you take efficiency into account, direct sales and exclusive teams rank last, especially if the manufacturer only has a limited product range.<\/p>\n That leaves focal teams and the general price list. Despite the popularity of the latter, the focal-team approach delivers better results in practice. For example, the general price list often yields about 50% efficiency\u2014decent, but a focal team can reach 65%.<\/p>\n However, every manufacturer needs to find a sales model suited to their specific situation. It\u2019s important to consider how many of your orders are among the distributor\u2019s total orders.<\/p>\n In principle, you can achieve good metrics with any approach, as long as you set clear work metrics and evaluate them. Without proper monitoring, even the most effective sales model can\u2019t deliver results.<\/p>\n It\u2019s great to have sales models for manufacturers. It\u2019s even better to have precise metrics to track performance. Rather than inventing new ways to motivate distributors, you need to address how you\u2019ll monitor your indicators.<\/p>\n You can do this with PriceCop\u2019s tools:<\/p>\n If you\u2019d like to establish effective monitoring in your company, fill out the form:<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" Sorry, this entry is only available in UA.<\/p>\n","protected":false},"author":1,"featured_media":530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/posts\/500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/comments?post=500"}],"version-history":[{"count":2,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/posts\/500\/revisions"}],"predecessor-version":[{"id":2164,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/posts\/500\/revisions\/2164"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/media\/530"}],"wp:attachment":[{"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/media?parent=500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/categories?post=500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pricecop.net\/en\/wp-json\/wp\/v2\/tags?post=500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Direct Sales<\/h2>\n
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Distributor with a \u201cGeneral Price List\u201d<\/h2>\n
Focal Team<\/h2>\n
Exclusive Team<\/h2>\n
Which One to Choose?<\/h2>\n
In Conclusion<\/h2>\n
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