How to effectively motivate dealers (on)
HC360 HC Network 2003-08-15 14:00:51
Moderator: Deng Youge (this column host) special guest: Chen Jun (a company marketing director) He Junhui (a company marketing deputy general) Yang Ronghua (a company sales minister) Li Zebin (a company planning director) ** rebate is also Put the double-edged sword ** modeler: We know how many companies have their own unique incentive policies on how to motivate dealers, but are it very effective? Many companies may not fully understand. Because management is often divided into two aspects: efficiency and effect, most companies use the way dealers to use sales and rebate policies, and encourage dealers to sell, the higher the replacement ratio. Is this too emphasized that the efficiency is overlooked? Please talk about your opinion and experience. Chen Jun: According to my understanding, the rebate refers to the manufacturer's lag reward for dealers in the form of cash or physical forms according to certain evaluation standards. The rebate is characterized by hysteresis, rather than being fulfilled on the spot. If the rebate is generally divided into monthly return, the rebate is generally divided into months, season returns to three; if the rebate is generally divided into two categories, if the reward is classified, the rebate can be Divided into two types of process rebate and sales rebate. I think that the rebate is to put the double-edged sword: First, because the rebate is based on the sales quantity, the dealer must pay more than one to sell products. This approach has its correct side. After all, it is an important purpose of the sales of manufacturers. Especially in the early stages of products entering the market, this policy is not underestimated. Second, the rebate may also become a short-term act of short-term behavior such as the dealer. Especially when the manufacturer's product occupied the market, the focus of manufacturers' sales work turned to a stable market, and the shortcomings of the policy of sales rebate were increasingly obvious. During the limited area, each dealer cannot complete a certain target in a limited time, they naturally conduct cross-regions. The dealer will pay backwards in advance, do not hesitate to sell products at low prices, and it is flat to print and even lower than the price wholesale. As a result, you go to my area, I am going to his area, and finally lead to chaos or even collapsed. In order to illustrate this problem, I have prepared a case here. Case: It is all the rules of the rebate, always a small and medium-sized cosmetic manufacturer's marketing, the sales of products last year is not bad, ready to do this year. In order to achieve this year's sales goal, improve the sales of dealers, and introduce new reward policies, on the basis of last year, further improved sales rebate to dealers. Part is always a three different annual sales indicators, that is, must protect the task, strive for tasks and sprint missions. The higher the annual sales indicator, the greater the percentage of the rebate at the end of the year, and rebate reward is with distribution The absolute value of the sales year sales. For example, if the dealer completes 2 million must-guarantee tasks, strive for the task of 2.5 million and sprint missions 3 million yuan, the rending ratio is 1%, 3% and 5%, respectively, and the corresponding rebate amount is 20,000, 75,000, respectively. 150,000 yuan. From the point of view of the total rebate policy, if the dealer completes only 2 million must-guarantee tasks, only 20,000 yuan sales rebate, but if you complete 3 million sprint missions, you can get 150,000 yuan. Sales rebate. The annual sales of the dealer increased by 50%, and the rebate has been doubled. For dealers, their own profits must be the first. Under the induction of such rebate policies, the dealer is shaking the head to rush, and strive to get the highest rebate reward. So, in order to complete a higher sales task, the dealer did not hesitate to use various means to impact sales.
Some dealers are marking in other regions. Some dealers put down the price to sell, sacrifice a little price profit, as long as you can complete the highest sales indicator, get high rebate. How much is a loss, how much earning, the dealer is clear, this is not a small loss, you can't make big money. What's more, I don't do it, other dealers will do this. In order to stop the fare and low-cost dumping, some of the dealers of some violations will threaten the rebate, but at all, why? Your factory's floor payment is also deducted in my dealer, and is also afraid that your manufacturer does not give rebate? So, the soldiers and low-priced sales are more intensified, continuously upgraded, and some dealers who have been complying with order are also forced to be involved, the price is more low, the dealer's difference profit is getting thinner, less than one year Time, the price is close to "selling". Fang has always been able to focus, the dealer is accused, the complaint is constantly, and the marketing staff under the head will save the fire, fatigue, the marketing staff who "do market" now become "do fire". There is no way, in the case of minimizing the damage of low-priced products on the market order, for those regional markets for low-priced selling, the manufacturers must not have money to buy low-priced products and buy back. But no matter whether you have returned the low-cost products to buy low-priced products, you will continue to flow from the market because the source is not blocked. How to do? The party has always been determined, but I have to take a way to do a way, and have broken the source of dealers with severe low-cost stocks. And the dealers who were discharged were dissatisfied. If not someone else will pick up the farewar, how can I get the goods? It's not my own goods, why do you break my goods? So, in order to retaliate, the dealer of the goods is thrown in the market at a lower price in order to retaliate. ** More use "process" rebate, less selling rebate ** host: indeed, rebate is the double-edged sword, then how to maximize the incentive role of rebate rewards, while trying to suppress rebate rewards Negative impact? He Junhui: I personally think that when the manufacturer is developing rebate policies, it should be rendered more process, and sell less sales. Manufacturers can set up all kinds of rewards for the details of the marketing process, such as the scope of the awards, sales rates, sales of promotion, safety stocks, comply with regional sales, special sales (no competition), active distribution and guard Payment, etc. Process rebate can improve the profits of dealers, thereby expanding sales, but also prevents the unregulated operation of dealers, and also cultivates a healthy market to ensure tomorrow's profit target. I also prepared a case here. Case: Comprehensive Assessment Rebate Standard A food manufacturer is the same as many other manufacturers. The rebate policy for the dealer is to sell as the only rebate standard, and the higher the proportion of sales, the higher the proportion of the rebate, and the dealer is induced. Strict profit, resulting in unregulated operations such as dealers, killing, etc. Later, this food manufacturer learned lessons, and the development of rebate is not the only assessment standard in sales, but according to the management of the marketing process in different stages of the manufacturer, it is comprehensively assessing the return standards. In this way, in addition to the completion of the sales quota, it is also set to reward the dealer, but also set the following rebate rewards: 1. The shop market exhibition award is in the market, manufacturers work together to take the initiative, quickly serve the goods to the terminal. At the same time, the manufacturer is rewarded by the dealer as the appropriate manpower, capacity subsidies, and rewards the dealer to the best position.
2. Channel Maintenance Awards To avoid dealers' goods retention and basic work lag, the sales volume shrinkage, manufacturers incentives in the form of "channel maintenance award" incentive dealers to maintain a suitable product, and have appropriate channel networks. 3. Prices reputation prize In order to prevent dealers from launching adverse behaviors, the dealers have eventually lost their profitable space, and the manufacturer sets the "Price Credit Award" at the time of price design, as the control of the dealer. 4. Reasonable inventory manufacturers take into account factors such as local market capacity, transport cycle, cargo turnover rate and unexpected safety reserves, manufacturers to establish a "rational inventory award" to encourage dealers to maintain their suitable quantity and variety. 5. The Dealer Collaboration Award is an effective means of establishing collaborative awards such as policy implementation, advertising and promotion, and information feedback, which strengthen the relationship between manufacturers and distributors, and is a effective means of fade. Of course, all kinds of rewards you don't necessarily use, so you will make your dealers feel that your price policy is too cumbersome, even becoming a name to increase your sales cost. So, you must clarify what questions you want to solve your focus. In this way, you can effectively achieve your own purpose by rebateing this lever. Yang Ronghua: It is true that the manufacturer should pay attention to the focus of the rebate in different market stages in different market stages. With rebate to motivate dealers, manufacturers must first figure out what the specific goals you have to reach at this stage, only the specific goals are clear, can be targeted to formulate targeted rebate programs according to goals. In addition to the improvement of indicators such as vivid (exhibition of end product products) and the completion of dealer delivery, the focus of rebate rewards should focus on combating competitive, increased private, municipal feedback, distribution The proportion of projects such as promotion execution effect, while supplemented a certain sales reward; in the maturity of the product, the focus of rebate rewards should pay attention to the maintenance of the channel order, the rebate should be sold in the area, abide by the price, and regulate the shipments and guard The date of payment is mainly, and the sales reward will only serve the aid. Chen Jun: In addition, we should pay attention to the rebate should not be only a reward means, but should be a management tool. The rebate is both to motivate the dealer's role, but also to manage and control the role of the dealer. Because the rebate reward is not honored on the spot but is attacked, that is, some profits of the dealer are deducted in the manufacturer's hand, so the manufacturer has mastered the initiative. If the manufacturer returns well, it can make the rebate into a tool for controlled dealers. For example, a manufacturer's rebate policy is this: 1. The dealer has implemented sales according to the company's price system; 2. Dealer excessively completes the sales volume, 1% of the rebate; 3. Dealer does not have cross-regional sales Returning 0.5%; 4. The dealer has better implementation of the market promotion and promotion plan, and rebates 1%. According to this rebate policy, if the dealer does not have a behavior such as swelling, you can get a rebate of at least 3%. If the dealer rushes to the sales volume through various irregular means, you can only get 1% rebate, sales A major dealer is also not worth it. Of course, if it can exceed the sales volume, there is no more than the prices, the profit of the dealer is the biggest. There are also short-term behaviors that are more stringent, severely crack down on the price of the goods, as long as the dealer has a dealer, the year-end rebate will be canceled, which is also a big deterrent to dealers. In this way, manufacturers not only make the rebate to become a drug-free induce agent, but also use rebate to suppress short-term behavior such as dealers. ** Pepsi Coke uses "darkback" policy ** Moderator: Is it only a domestic enterprise to use rebate reward policy to motivate dealers? Does the foreign companies also have the same incentive policy? Chen Jun: Not only the domestic enterprises use rebate policy to motivate distributors, foreign companies also use rebate policies to improve the enthusiasm of dealers.
