Practical business strategies in consumer goods distribution

Starting a distribution business is exciting as profit from turnover and circulation of your consumer goods is very rewarding. The retail world is just full of opportunities to introduce and grow your distribution. If you believe that your consumer goods are really that good, then the question is what distribution strategies do you have to get your consumer goods to customers who would benefit from it?

1. Survey your Market

Before you pack, load merchandise, and set off selling everywhere, you need to know what channels (outlets) are out there and how to go about selling them your product. Like if your product falls under the fast-moving consumer goods group, the best channels that are likely to get hold of your consumer goods would be grocery and convenience stores.

 Selling to the wrong kind of channels would be a waste of time and only add up to operational costs. In the end, the result will be loss of sales or worse, negative profitability. So map out your potential consumer goods clients and create a database of information by simply asking what their retail distribution business strategies are.

Always remember that every outlet wants to outdo the other in consumer goods distribution. So, if it does not have your product, it is not a complete store. Consumers like going to the complete store. And to ask an outlet a probing question if it sells consumer goods, is already leverage for selling in your merchandise.

2. Have the four basic forms of Capital

Any business needs operating capital. In the consumer goods distribution business, capital is in the form of delivery vehicles, revolving fund, storage and most important of all, workers.

It is important to note that having the right kind of vehicles is a reason to the success of the consumer goods distribution. Load capacity should compromise with mobility. Like, what good is it to have a big truck carrying half of the storage’s inventory if it were to deliver to outlets along a narrow road? Selecting the right logistical tools for the different peculiarities on the field counts.

Revolving fund is also  monetary capital. It is the money set aside  used for payment in all necessary expenses. From payment of suppliers of the consumer goods to the salaries of employees, every business has monthly expenses. You may need to apply for a loan to start with.But in the long run, any well-managed consumer goods distribution can draw this fund from its gross income and still have plenty left as profit. So start the  consumer goods distribution business right and its guaranteed exponential income.

Storage or Warehouse is where our consumer goods or “inventory “are kept. In finding a warehouse, there are other requirements you might want to consider as “musts”. First, It must pass your suppliers specifications. A supplier keen to upholding their brand image will never allow their consumer goods stored in a substandard storage. Because this goes with the promotion and marketing of the products.

 Second is proximity. Set it up in the middle of the targeted area. The nearer you are to your customers discourages your consumer goods  distribution competitor and increases turnover rate or frequency of your consumer goods  sold. And best of all, it will lower your fleet’s fuel consumption.

 Lastly, have it covered with an insurance policy. The bulk of your capital is in the consumer goods. Theft, fire, flood and pests could ruin your consumer goods distribution business. If there is no such insurance policy having all of these covered, then have a contingency plan ready.

Manpower is your most valuable resource in the consumer goods distribution. Because your employees can either make or break your business. Whether a highly qualified educated employee or a simple dedicated worker, always look out for their welfare. Company policies in place will always safeguard the interest of your business. But it will take retention of experienced, proactive and productive employees to grow the consumer goods distribution business. Because as the saying goes, “A happy worker is a productive worker”.

3. Have an actual route design

Once you have completed your survey of your customers, draw out a track and test it for time and motion of an eight-hour real consumer goods route selling. It determines the total outlet visits daily, the kind of vehicle suited for the route,  fuel consumption, and the target sales volume of the consumer goods distribution.

 Having this simple feasibility study gives you an idea of what the profit figures for your consumer goods distribution will be. It will also gives you an edge over your salesmen. Monitoring sales people requires an exchange of questions and answers like that of an interrogation. Because salesmen are experts in whipping and mixing up consumer goods information and serving it cold-blooded.

It is an advantage to experience the consumer goods distribution routine. Because at the end of the day, your intuition lets you know if the excuses are valid or well fabricated fairy tales.

4. Develop a strategy to sell in the product

Selling is a skill and not an inborn talent. A seller in a consumer goods distribution develops this ability through experience, observation of the market, and a step by step procedure in handling customers.Customers expect you to convince them of buying your consumer goods. So going in for the first time and to negotiate to a stranger means you  are ready to talk your way around until you get a yes for an answer. To do that requires more than presenting the consumer goods, prices, and getting an order because many other factors leading to a no response may come into play.

 Second, use your observations to open up a conversation or to bail you out if the situation doesn’t go smoothly. It is in these conversations you get to know more how your consumer goods customer thinks and  how it influences their personal or business decisions. It is also in these conversations that the customer is observing you. So if the customer agrees with you in these neutral topics, they are more inclined to agree with buying your consumer goods at the end.

Lastly, there is no substitute for being sincere to your customer. If you include genuine customer service in your consumer goods distribution business, you will never run out of customers.

TIPS FOR BEGINNERS IN CLOSING A SALE IN THE CONSUMER GOODS INDUSTRY

Today I read a post in an entrepreneur magazine website which gave emphasis on knowing the product to close a sale. As a sales professional in the consumer goods industry and an entrepreneur here is a list of tips to close a sale based on my experience. I am happy to share to all entrepreneurs my experiences. I know these will be helpful strategies as they are practical.

Knowing your product too well will cost you

Imagine getting a number and sitting next to all account executives of different consumer goods suppliers, each waiting to pitch at a scrutinizing buyer of a national retail sales company. If you’re a new sales agent, focus on giving a good impression of yourself, because your consumer goods are already familiar to the buyer.

It is however an opportunity for the buyer to get acquainted with you and test out your nerves. Most buyers are mature and have performed their job for years. They are trained to make life a bit hard for sales agents. Some will deny your consumer goods pitch at the first sign of discontent and move on to the next sales agent. So knowing your consumer goods product description well is a requirement but not a deciding factor.  Product introduction in sales visits are ignored intentionally to play mind games and gain leverage in negotiations against new sales agents.

  

In negotiating of a sale, learn how to bluff

The consumer goods retail industry is run by the multinational and local suppliers of consumer goods companies each trying to compete for market share. Market share in terms of the amount of consumer goods sold in every outlet. A buyer of an outlet understands this on-going competition and uses it to their advantage. You as the sales agent are the referee between buyers and suppliers.

The buyer waits for you as the sales agent to pitch, then maximizes the benefits on terms of the sale. While you as the sales agent also prepares to increase discounts upon agreement of higher sales purchase. Aside from discounts there is a return of consumer goods policy that you can choose to present to a buyer at a right moment to gain priority over competition. A limited stocks pitch also puts pressure on a buyer to take it or leave it. The entire consumer goods sale is almost like an ordeal of playing poker.

Orchestrate the whole consumer goods exchange

Assuming that the sale has been closed by your perfect sales pitch, the real work begins. The sale may be closed but cancellation is still an option for your buyer. Be aware that once the buyer agrees to the terms of the sale, the buyer now plans of disposing the consumer goods and make a profit. It is now up to you as the sales agent to follow through and not ruin the buyer’s plan. you must now make the necessary arrangements.

Make sure you do not to run out of the ordered consumer goods, and process the documentation of the order immediately. If necessary, cut corners to expedite the delivery. Check your consumer goods delivery team from time to time. Your delivery may be important to you and your buyer, but delivery people at times can be unpredictable.

Lastly, be at the delivery site and on schedule. Supervise and show concern for the handling of the consumer goods. Show the buyer that you’re more of a doer than a talker. This extra effort being at their establishment instead of being somewhere else will seal the deal. It will change their perception of you just doing your job and selling consumer goods. Buyers will see you as a reliable and responsible person. Remember that trust is hard to earn in the consumer goods industry because buyers have seen it all.

 Collect your receivables after attending to the goods for return

Each sales agent is different. Each has a unique style of closing a sale. But all are subject to the same return of damaged consumer goods policy. Consumer goods which are not fit for resale are returned to a supplier. In the return, the value of the closed sale is lowered.  Damage goods are often deducted directly to the amount of the recently closed sale. Buyers are always on a look out for the opportunity to return unwanted consumer goods.

But delaying the process to close a better deal is totally up to you as the sales agent. Keep in mind they still have not given you your payment for the sale of your consumer goods. Attending to the buyers difficulty will help pry the payment off their grasp.

In closing a sale, the sales agent represents the product. A buyer will welcome a sales agent that does not only know how to sell but is also a human being. Even if the consumer goods are unreasonably priced, or slow moving, Build credibility in the consumer goods industry by learning the basics and don’t be afraid of doing a little dirty work. In the end you are the image of your consumer goods.