How Could Tyre Distributors Make Money?

How Could Tyre Distributors Make Money?

With the further intensification of market competition, manufacturers have higher and higher requirements for channels and networks.

With the development trend of intensive development of channels and downward focus of development, tyre distributors' development room is getting smaller and smaller, but manufacturers have more and more requirements for distributors. Funds, transportation capacity, sincerity, management, and contacts are all indispensable. Sales volume, display, promotion, promotion, distribution and other jobs must be done.

How can tyre distributors ensure that they profit when selling agent products?

(1) The right product mix and channel planning

First of all, the distributor should characterize the products of the agent:

The development direction of star products is to become mature products, which requires tyre distributors and enterprises to control the market price of products and ensure reasonable and stable profits in all aspects of the channel. If these two problems are not handled properly, star products will go from unprofitable to stock products.

The development direction of mature products is to become best-selling products, which allows distributors to maintain control of the channel. The key to turning a mature product into a best-selling product is to invest more in consumer accumulation while maintaining a reasonable channel profit, so that consumers can recognize the product and form a purchase awareness.

Niche products are mainly for making profits and maintaining customer relationships. If we can strengthen the brand awareness of tyre manufacturing companies on the basis of ensuring these two points, and create a consumer atmosphere, niche products can also develop into star products.

However, if the profits of core customers in the process of pursuing sales are ignored in terms of niche products, it is likely to backfire and make products unsalable.

Stock products should be handled in a reasonable manner, and tyre distributors can sacrifice profits when necessary. Because the cash flow and warehousing cost savings after clearing inventory can create greater profits.

(2) Identify hidden cost issues

To a large extent, the external management ability is determined and supported by the internal management ability, and the cost control ability is the main manifestation of the management ability.

The cost we are talking about here is divided into two cases: one is called hard cost, and the other is called hidden cost.

(3) Regular business review and management of cost and profit

Now many tyre distributors are doing business in a general way, making products vaguely, without the awareness and habit of regularly sorting out products and taking stock of business conditions.

They think that each business will be done as long as there is a suitable gross profit, but at the end of the year or a quarter, it is found that there is only a large amount of inventory and accounts receivable in hand. This situation naturally greatly reduces the profit of the distributor.

Therefore, distributors should introduce an advanced financial management system and review the operation status of the products regularly. When reviewing the business, tyre distributors should focus on reviewing the "quantity, cost, and profit" of the products they operate. These three indicators are the core of the business. All business behaviors are aimed at rationalizing the quantity, cost, and profit.

Only through the analysis of the data on the volume, cost and profit of each product, can the distributors know the contribution of each product to their own business, the focus of their business and the next steps to take, and finally determine a reasonable product mix.

(4) Reversely urge the manufacturer's salesman to obtain the manufacturer's support

It is necessary for distributors to learn to reversely supervise the salesmen sent by the tyre manufacturing company in order to obtain sufficient resources or policy support.

As a manufacturer's business personnel, in addition to blindly urging the distributors to pay and stock up on products, they should also be able to analyze the local market conditions and distributors' operating conditions, communicate with the manufacturer's executives, and strive for market support, which will naturally help the distributors reduce operating costs and increase profits.

In addition to feedback on market problems and difficulties, competent salesmen can also give their own opinions and solutions for leaders to choose. At the same time, they list the resources that tyre distributors are ready to invest and the support that manufacturers need, the input and output ratio of this program, and the long-term effect of this program on the market and distributors.

Leaders can easily make decisions when they see the value of the input. The distributor and the salesman can summarize the problem and the corresponding solution together, which will bring obvious returns to both parties.

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