Question

Topic: Other

How To Obtain Distributor Support, For Direct Ord

Posted by avkurian on 1/5/2017 at 4:52 AM ET 125 Points
Any suggestions on how I can obtain/retain my distributors support when there is a prospect of a very large MNC who wants to place a direct order with us, the manufacturer. Mind you these direct orders are not frequent and hard to predict, but volumes are large when they turn up.
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RESPONSES

  • Posted on 1/5/2017 at 10:23 AM Moderator
    Why would a distributor want to do this? What's the benefit for them?

    They [presumably] work hard to represent your company, and now you want to cut them out of a large sale. It doesn't compute. Can you explain?
  • Posted by avkurian on 1/5/2017 at 10:53 AM Author
    Thank you...because of the size of the order....the large MNC, prefers to buy direct as they expect a better pricing based on the volume rather than go via the local distributor....at the end of the day it comes down to pricing. The MNC will push for larger discount based on the volume of the order, and they bundle our product into their product offering to the end customer. Our product just complements their product and they are not buying our product to sell locally against our distributor. Hope you get my point.
  • Posted on 1/5/2017 at 2:27 PM Accepted
    If I were your distributor and you cut me out of a deal that I thought should have been mine, I'd be very upset (and probably not bust my chops to help you out going forward).

    On the other hand, if you came to me and said, "We have a huge opportunity with MNC, but they are looking for a price that doesn't include your commission/mark-up, but we won't take it unless you agree to take less, the distributor would probably agree AND be forever loyal to you.

    Friends (manufacturers) don't screw friends (distributors) if they want to keep them ... not even for a big order from a MNC.
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