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Keeping distributor motivated to support the principal, especially when markets are tough. Many supplier businesses have trouble getting a handle on their relationships with the companies that distribute their products or services. The first challenge for suppliers that rely on distributors to sell their products is maintaining the integrity of their brand promise across multiple relationships and channels. The second challenge - attracting, recruiting, and retaining strong talent. But again, it's an even bigger problem for supplier companies because they don't have direct control over the distributors that represent their products or services. Here are major challenges below;
Solutions
A one-price-for-all policy can eliminate an important source of arbitrage and allow the supplier to reassert a measure of distributor control and reward the full-service dealers in the network. Plan to have more then one distribution model for different sigment or region. Carefully determine which consumers you want to serve. Be prepared for multiple channel partners. Investment developing the channel and sales team. Always measure performance.
