The most common failure method for domestic trade factories to attract investment is not that they cannot recruit people, but that they "recruit first and then screen": as long as the other party is willing to make money, they will open a business, and recruit a group of dealers who will only suppress prices, are unwilling to distribute goods, and do not serve as terminals. After three months, the area was occupied, the price was confused, the goods were sleeping in the warehouse, and the factory wanted to change but could not change them-because the contract did not specify the exit conditions. The essence of investment promotion is to set standards first, then give policies, and then leave an observation period. This article gives a set of structures that can be directly implemented.
1. Three root causes of failure in investment promotion
One of the root causes is unclear standards. When the factory invites investment, there are only two questions asked: whether it has money and whether it can get how much goods at one time. As a result, the second-batch merchants were recruited instead of terminal service providers. Even if the goods were moved from the factory to the dealer's warehouse, the sales were completed, and no one was responsible for terminal sales. The second root cause is that the policy was given incorrectly. When regional protection should be given, an accounting period was given, and when tasks should be set, a bunch of gifts and subsidies were given. Policy resources were spent on encouraging hoarding of goods. The third reason is that there is no exit mechanism. The contract is signed for three years and the area is drawn to the end. If problems go wrong, they can only be dealt with by emotion and kindness.
The three root causes all point to the same thing: investment promotion policies should be designed based on "whether the goods can be sold to the terminal", not based on "whether the goods can be sold at a time." Once this judgment criterion is changed, the selection criteria, first order policy, and observation period design will all have a basis.
2. Selection criteria: a five-dimensional scoring table
| dimension | see what | weight |
|---|---|---|
| Funding and payment habits | Cash ratio, longest accounting period in history, whether there are any records of delinquent peers | 25% |
| Channel coverage and terminal structure | Number of terminals directly served, terminal type (retail, engineering, second batch), coverage radius | 30% |
| Agent brand structure | Whether the existing agent brand conflicts with our products, and whether the energy allocation is sufficient | 15% |
| Warehousing and logistics capabilities | Storage area, delivery vehicles, door-to-door delivery capabilities | 15% |
| Business willingness | Are you willing to do terminal promotion, accept quarterly tasks and data feedback | 15% |
Scoring is placed before investment promotion, not after recruitment. There are two simplification techniques when landing: one is to use on-site visits instead of questionnaires, and go to his warehouse and store to take a look, which is more accurate than filling in ten forms; the other is to ask the salesperson to run his existing distribution line first to see whether the terminal structure is real or whether it is on paper. The scoring results are divided into three categories: 75 points or above for key business opening, 60 to 75 points for trial sales first, and less than 60 points for polite decline.
3. How to determine the business opening policy
- First order quantity:Calculated based on 1.2 to 1.5 times the monthly terminal demand in the region, it is enough to store goods but not enough to hoard goods. The higher the quantity of the first order, the better, and the problem of pressing goods will definitely come back in half a year.
- Area protection:Clarify whether the scope of protection is an administrative district or a channel type, and state that the prerequisite of protection is to achieve phased tasks; writing only the area but not the task is equivalent to sending the area out permanently.
- Task volume and rebate:Quarterly tasks are divided into three levels, and rebates are paid according to the level of compliance. The rebate form is preferred to deduct goods rather than cash; the task volume is calculated by the number of regional terminals multiplied by the output of a single store, without the national average.
- Accounting period:All new merchants will be in cash in cash for the first year. After one year of cooperation and zero overdue payment, a 15-day accounting period will be negotiated. The billing period is a reward, not an admission ticket.
- Price system:Give the range from the one-stop price to the terminal guidance price, and write down the lowest retail price and the lowest project price as the basis for subsequent handling of goods fleeing.
4. Three-month observation period: four acceptance certificates
There is a three-month observation period after the new merchant signs the contract. During this period, he will not enjoy task rebates and only four acceptance orders will be issued. The first one is the first order execution order: pay the first order within the agreed date, complete the first goods delivery, and inspect the funds and cooperation degree. The second sheet is the distribution rate list: the terminal distribution within the agreed area reaches the agreed number of homes and agreed number of pieces, and it is checked whether he has a terminal network. The third one is a sales order: the proportion and amount of secondary purchases within three months to check whether the terminal can really sell. The fourth one is a payment receipt: zero overdue, check fund discipline. All four orders were passed, transferred to the official dealer and given the task policy; two orders were not passed, and the observation period was extended for three months; all four orders failed to meet the standards, and the area was recovered according to the terms of the contract.
The most taboo during the observation period is "turning one eye closed". Factory investment promotion teams often have business opening indicators. In order to complete the indicators, the observation period is gone through the formalities. After half a year, the area cannot do it and wants to replace people. The area is already piled with low-priced goods, and new merchants are unwilling to enter. It is better to eliminate one unqualified person three months later than to delay it until a year later to clean up the mess.
5. Handling standards for regular employment, promotion and withdrawal
After becoming a regular employee, the assessment will be conducted quarterly, and the assessment indicators only look at two items: terminal sales and collection. Upgrades that meet the standards for two consecutive quarters will be given to a larger area or a better rebate position; downgrades that fail to meet the standards but have clean returns for two consecutive quarters will narrow the area and reduce rebates; if there are goods fleeing, selling at a low price, or overdue for more than the agreed number of days, the refund process will be initiated directly. The refund must be carried out in accordance with the terms of the contract. A written notice must be given to rectify within a time limit. If the rectification is invalid, the supply will be stopped, the area will be recovered, and the tail goods will be disposed of as agreed. Keep a written record of all actions to avoid verbal confrontation in subsequent disputes.
There is another thing that is easy to overlook: in the contract signed by a newly signed dealer, there must be a price system and goods fleeing clauses. The price system does not restrict dealers from making money, but provides everyone with a predictable business environment; the key to the cross-shipment clause is "verifiability"-each batch of goods is required to have a traceable batch code or regional identification, otherwise the clause will not be enforced no matter how strict it is.
6. Common questions
1. Should I give exclusives to investment promotion?
No exclusivity will be given in the first year, and quarterly tasks will be added to regional protection. Regional exclusivity should be replaced by tasks: first complete two quarters of tasks, and then sign an exclusive agreement and state that exclusivity for unfulfilled tasks will automatically terminate. Using exclusives as bait for investment promotion usually results in either the factory being tied to death or falling apart when due.
2. Old dealers oppose adding new dealers in the same region. What should we do?
First look at his own terminal coverage data. If he does cover more than 80% of the effective terminals in the region and the sales are healthy, he will be given the opportunity to prioritize expanding the category; if he has insufficient coverage and does not agree to increase the business, he will be evaluated and adjusted according to the regional protection premise (task achievement) in the contract. Use data to speak when communicating to avoid turning into human negotiations.
3. The discount required by a new merchant for the first order is very low. Will you give it or not?
No naked discounts are given, conditions are given. Special support can be given to the first order, but it must be support from the "promotion terminal": display materials, opening and promotion expenses, the first batch of samples, or market expenses written off based on the number of shops. Giving discounts directly into the price will only disrupt the price system from the beginning, and all dealers will use this price as a benchmark to negotiate later.
