Interest game in the relationship between mahogany furniture manufacturers and distributors

The mahogany furniture industry has two major events every year - the Guangdong Zhongshan Dayong dealer conference in March and the Zhejiang Dongyang dealer conference in September. The total number of dealers at each of these two events can exceed 1,000. The two major dealer conferences are located in the important mahogany furniture production base, which also shows the importance of dealers to most mahogany furniture manufacturers and mahogany furniture industry.

If dealers and manufacturers are seen as fish-water relations, it would be too simple. Dealers and manufacturers, first of all, are interests, which determines that their relationship is not simple. In the interaction between the two, they always play multiple roles. Once the balance of interest is tilted, between the roles and roles, various contradictions begin to emerge.

Contradiction: Are you scornful or am I arrogant?

Dealers: Most mahogany furniture companies are very welcome to dealers, each new dealer to get goods, service and hospitality will definitely do. However, once the dealer picks up the goods, it is difficult for the manufacturer to provide after-sales service and support to the dealer. In addition, the price of the manufacturer's sales staff to the dealer is not uniform, so the price must be bargained when ordering.

Manufacturer: The market has been good for the first two years, and dealers are easy to recruit. But in the past two years, there have been more manufacturers, and the competition for dealers has become fierce, and dealers have become arrogant. They came, not only to entertain, but also to shop around, pick and choose, the bargaining is very bad, and the profits of the manufacturers are very low. Now the manufacturers are actually very passive.

Contradiction: Do you not protect or I don't maintain?

Dealer: Now the manufacturer has very little service and support to dealers, and most mahogany furniture products are similar. Dealer marketing can't find highlights, so we don't want to use the manufacturer's brand, because after using the brand, we can't get it. Support, but also subject to many restrictions on the manufacturer. In addition, most of the mahogany furniture factories are also doing direct sales for retail. Consumers have seen advertisements. In order to get a lower price and directly call the manufacturers, the manufacturers will sell them directly to consumers at a lower price. The interests of local dealers.

Manufacturers: Most dealers get goods from many mahogany factories, and the quality of the products is uneven. Therefore, we are afraid to give their own brands to them. Otherwise, consumers may find us here. Some of the larger and more stable dealers are reluctant to use our brand. They generally make a brand of their own. The source of supply is also from multiple manufacturers, similar to OEM. Such dealers, with a large volume of goods, manufacturers want to do their business, but manufacturers are often very passive when facing them.

Contradiction: Do you not pay or I don't cooperate?

Dealers: In the past few years, mahogany furniture was sold very well, and it was generally in short supply, so we felt that there was no need to advertise, and most of the manufacturers would not subsidize the advertisements we invested. Now the market is not good, our dealers are the most difficult, the company has no support policy, and we don't have the funds to do advertising. Besides, many mahogany furniture manufacturers do not have a complete franchise and protection system. We push the brand of the manufacturer up, but we have no guarantee. The manufacturer wants to take back the brand and take it back. There are also many restrictions on getting the goods. Instead, we don't advertise, the manufacturer's brand is not so famous, and we are free.

Manufacturers: We also require dealers in the region to advertise, but dealers in some regions are always reluctant to invest, and the manufacturers are not on the unified front. We are not willing to invest too much in dealers now, on the one hand because some dealers are not honest. Some time ago, a well-known dealer of mahogany manufacturers in Dongyang sold the goods to the consumers a few days later, and the people were gone. As a result, the furniture bought back a few days and the problem was solved. The consumers found the manufacturers and the media. The factory did not look at its own goods at first glance, but the incident was also exposed to the media and brought a very bad influence on the corporate brand.

Contradiction: Do you have no system or I am not up?

Dealers: Most mahogany furniture companies do not have a dealer training system. We have not received basic training from joining the mahogany companies. We have no understanding of this industry and mahogany furniture, and we have encountered many problems in sales. Some technical problems we can't operate, we want manufacturers to send people to be responsible, but manufacturers are generally difficult to do technical support.

Manufacturer: Many dealers know nothing about mahogany, just look at the industry to make money, come to join. There is no relevant knowledge about mahogany furniture, exhibition layout, marketing concept, brand, etc., and because of the large capital investment requirements of mahogany furniture, the dealers who just entered the market dare not easily invest in decorating the mahogany exhibition hall, but sell the mahogany furniture. "The ground to spread goods."

Spicy Comments:

——The dealer is not a manufacturer’s money-making tool, and the manufacturer cannot be reduced to the dealer’s processing plant.

The current mahogany furniture industry relies to a large extent on dealer development, so dealers will have a major impact on the development of the entire industry. Dealing with the relationship between dealers and manufacturers is also an important issue in the industry.

The network, manpower and capital of the dealers can bring the benefits of “low-cost products entering the market to create sales and profits”. During this period, the dealers are the “knocking bricks” for the manufacturers to open a new market, and the sales of the manufacturers in this area. manager. For such a partner, comrades-in-arms, manufacturers should naturally not only short-sightedly target the "helping his store to shop once."

But dealers and manufacturers are two independent economic individuals. The interests of everyone are different and the ideas are naturally different. From this perspective, the dealer is the opponent of the manufacturer, and is the party B who sits at the negotiating table. This is also destined to be not a simple "fish-water relationship" between dealers and manufacturers, but a game of wisdom.

It turns out that establishing a long-term strategic partnership with a dealer can help companies achieve stable and long-term benefits. Taking the current downturn in the mahogany furniture industry, many manufacturers bluntly said that "this year as long as they can do the business of old customers." As for dealers, the market is sluggish, consumers are more critical and cautious, and there are enough and more varieties of products to be selected by consumers, which will certainly help sales. However, the sales performance is sluggish and the dealers' funds are tight. Under such circumstances, the relevant support and assistance from manufacturers in terms of price and publicity can be obtained, and the pressure will be reduced. This shows how important it is to have a long-term stable partner to share market risk at a critical moment.

Of course, there are still many problems with mahogany furniture manufacturers and dealers themselves. At present, the general cultural level in the industry is not high, the starting point of the enterprise is low, and the brand starts late. Many enterprises still do not have the ability to formulate and operate a complete dealer franchise system, so that many dealers do not get the franchise training. However, the interests of both the dealers and the manufacturers are not effectively guaranteed, so that the trust between the producers and sellers is low and the cooperation relationship is fragile.

At present, most of the brands in the industry are regional brands, while the terminal market is more concerned with the chain of the company, the status of the industry, etc., focusing on product packaging design and after-sales service, and this part of the information is not provided by most manufacturers. distributor. When many dealers join the dealers, they do not conduct any inspection on the market where the dealers are located, and they agree to the dealers to join. As a result, the product positioning is contrary to the local market, and the dealers quickly "die". In addition, some dealers did not do a risk assessment before the agent joined, resulting in a backlog of products, the capital chain will soon break.

In addition, because there are too many unknown factors, dealers are not willing to make additional investment in the manufacturer's brand, which makes some manufacturers sell their products to the whole country, but they are always only regional brands. And some dealers have less brand constraints, and they are more and more arrogant in the terminal market, smashing the water in the industrial market. These have become the main reasons hindering the development of the branding of the rosewood industry.

Tips:

——To create the best relationship between production and sales

Manufacturers to drive and help dealers not only can obtain sustained and lucrative profits in the region, but also an unshirkable responsibility in the development of enterprises. To establish a cooperative relationship, the two sides must first have an in-depth understanding, form a consensus, and adhere to the principle of mutual benefit, mutual trust, mutual benefit, mutual benefit and mutual benefit.

Learning together, growing together

To reach a consensus, the key is to communicate. Manufacturers should actively organize dealers to learn together and communicate more, so that they can not only fully understand their respective needs, but also establish mutual alliances and increase their stickiness.

At present, many dealers have individualized characteristics, and the overall management of the mahogany furniture industry tends to be personally intimate. These are the places where dealers and manufacturers need to make progress together. The specialization of dealers is to replace the previous extensive operations with refined management. Manufacturers must help dealers to accumulate professional knowledge and finally form execution capabilities.

Improve the mechanism to achieve a win-win situation

Training, networking, symposium and other forms of activities can achieve good communication from both sides and sides. Manufacturers and distributors should use business personnel as a link, more dialogue, less confrontation, enhance mutual understanding, strengthen loyalty, and improve coordination to achieve a win-win situation. In addition, manufacturers have the responsibility to improve the quality of business personnel, improve the mechanism of investment promotion, rational management of dealers, and take into account the overall situation. It is necessary to show sincerity to each other and help each other.

Co-owner brand long-term cooperation

The manufacturer must regard the dealer as a co-growth partner, and talk with the dealers about cooperation and development with a kind of cooperation mentality that is truly from the heart. Dealers need to change their mindsets, and they can no longer rely on the model of husband and wife, but rely on the strength of team operations to develop and operate the path of modern enterprise management. For manufacturers, in the case of increasingly thinner profits, manufacturers should actively change the way, such as providing more attractive rebates or dividends, so that dealers become the "co-owners" of the brand, there are more More protection and a stronger sense of existence. (Source: "Brand Redwood" Magazine Xiao Hwen)

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