For example, Mr. Wang currently owns three brands that he distributes, all of which are fast-moving consumer goods.
But Mr. Wang's funds are limited.
If we receive a large shipment of Guofei products this month, then we'll have to order less of other brands.
The problem is that other brands are definitely not happy about this. Why should they order less from my factory?
Mr. Wang could say that it sells well.
But don't forget that distributors have contracts with manufacturers, requiring them to order a certain number of boxes each month, or risk having their distributorship revoked.
This is how manufacturers pressure distributors to stock up on goods.
The manufacturers are focused on this; by the end of the month, they're calling all sorts of people asking them to order more stock and push inventory onto the shelves.
That's what manufacturers are thinking. If you buy too much, they'll definitely try to sell it, and then my products will be distributed, right?
Distributors can't afford to watch products expire.
This is how distributors and manufacturers view the issue.
Distributors tend to stock up on whatever sells well, which ties up their capital.
However, other manufacturers dared not do so, demanding that the minimum number of boxes ordered be fulfilled according to the contract.
Distributors won't easily give up on a brand; they'll only buy a token amount when they're truly forced into a corner.
Everyone can save face.
So everyone just turned a blind eye and let it go.
However, if a manufacturer changes its regional manager, these distributors will be on edge for a while.
They were afraid that the regional manager might be incompetent and strictly enforce the contract, causing an awkward situation for both parties.
Generally speaking, regional managers also have sales targets.
If we don't pressure our distributors to buy more stock, we definitely won't be able to meet our sales targets.
Some regional managers have strong connections, so even if they fail to meet their targets, the manufacturer's leaders won't say anything.
What's truly worrisome is regional managers who rise from the bottom, relentlessly pressuring distributors to stock up in order to achieve sales targets.
If an agent fails to purchase goods according to the requirements, the agent will immediately use this as leverage, and may even terminate the agency contract.
The distributors don't want to give up the brand, but they are also afraid that the brand will suddenly rise to prominence and they will lose the opportunity to make money.
Thus began a protracted battle.
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