How to increase the profits of the hottest paint d

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How can the profits of paint dealers become regional overlords increase by 50%

How can the profits of paint dealers become regional overlords increase by 50%

June 27, 2013

[although China paint information is not a big guy in the aluminum profile industry] when communicating with dealer friends, I often get the same question: Mr. Bai, how can I quickly and effectively improve my distribution profits? Similarly, I often ask my dealer friends: what do you think should be done to quickly increase profits? Dealers' answers are basically the same, but they seek breakthroughs from two aspects: first, expand the sales of existing products or increase brands and products; Second, increase the sales proportion of high margin products

their answer is right, but it is not comprehensive and specific. It can only be said to be a very general concept. Even we all know two ways: one is to increase profits by expanding sales, the other is to increase profits by adjusting product structure

marketing is not only an art, but also a science. No matter for enterprises or dealers, profits are not just earned by hard work; It comes from the profit module analysis of the marketing management system, which is calculated scientifically and realistically. In short, the profit is calculated; The increase of dealers' profits comes from the strengthening of marketing and management improvement of the following modules

first, there are two ways to increase the profits brought by the effective expansion of sales. The first is to expand the sales of existing products, and the second is to add new brands and products; Many times, the two are mutually beneficial, but poor operation will also form a great contradiction; This is also what many marketing experts or masters often warn dealers: instead of acting well for many brands and products, it is better to choose a few to become bigger and stronger. This theoretical basis is that on the one hand, acting more brands and products will inevitably distract dealers' energy, resulting in nothing; On the other hand, if the brands and products you represent cannot be at the forefront of the manufacturers, you will not be able to get greater support from the manufacturers; Your marginal income will be greatly reduced

this is reasonable, but the premise is that there are many and miscellaneous brands, and there is a lack of planning and complementarity; The future development of dealers and the competitive trend of rotary encoder determine that in order to become a real regional overlord, dealers must do a good job in existing brands and products, and appropriately expand new brands and products, walking on two legs, and can't walk askew; Look at the excellent dealers around us with large sales scale. They are agents of many brands and products, and do relatively well

of course, the expansion and improvement of sales is not simply the accumulation of more products and the development of more terminal networks; Instead, we should analyze the products, find the appropriate terminals, and match them with the appropriate promotion mode, so as to effectively improve and expand sales; On the one hand, we should expand the distribution as much as possible and carry out horizontal distribution; At the same time, we should use the "28 law" principle to find 20% of the key terminals suitable for product sales, carry out intensive cultivation, obtain vertical growth, and expand sales more effectively

Second, the profit increase brought by the structural adjustment of distribution products

we all know that the profit can be increased by expanding the sales of high margin products; At the same time, we are also painstakingly guiding business personnel to promote high margin products; But the result is not ideal, because we simply do not know in which terminals and how to promote high margin products is the most effective; Most of the time, we all know where the problem is or where the breakthrough point of the problem is, but we don't know how to break through

high gross profit or new products are characterized by high prices, large profits and difficult promotion. Dealers are very excited at the beginning when they encounter manufacturers promoting new products; With the cooperation of the manufacturer, formulate a promotion plan, then hold a mobilization meeting, and then start to distribute goods in the whole market and terminal. As a result, the goods are spread, but they can't be sold. After a long time, the terminal starts to return goods; Slowly, the dealers felt that the new torque tester and other laboratory complete sets of instruments were not easy to push, so they stopped pushing

in order to promote high margin products, we must understand the promotion mode of high margin products; The author summarizes a formula of product structure adjustment: high gross profit products + 20% terminal or market + resource focus + appropriate promotion mode = product structure adjustment; In the early stage of the promotion of high margin products, it must be to lock in 20% of the terminals with large sales of existing products or 20% of the markets with good foundation. These markets or terminals are willing to cooperate with the promotion of new products because of the large sales of existing products and their strong relationship with dealers. Therefore, the promotion of new products must first lock in the target terminals and markets, and second, focus on resources and costs. Although the promotion resources of high margin products are large, if the early stage investment is decentralized, If it can't be sold, there will be a lack of sustained investment resources in the later stage. After all, the promotion of high gross profit products is a long-term war; Third, try different promotion modes in key terminals, and finally find a more suitable and effective promotion mode

Third, the improvement of management benefits brought by scientific and standardized management increases profits:

scientific and standardized management includes two levels: one is the standardization of management process, the other is the standardization of marketing team management

the marketing management process must be market-oriented and service-oriented, and strive to be simple and fast; The focus refers to four aspects; The first is the feedback of market information, which aims to let the company grasp the market dynamics in time and step on the market pulse; The second refers to the handling of market problems, with the purpose of providing good services to end customers and consumers; The third refers to the rapid promotion of the company's strategies and programs, with the purpose of strengthening and improving the rapid execution of marketing; Fourth, loan and product management, to avoid more dead accounts and product expiration and waste

the core of process management standardization is to improve efficiency, strengthen services, reduce waste and save operating costs

fourth, the improvement of personnel labor efficiency and the increase of comprehensive profits

Welch said that when the company's employees have the highest income, they must have the lowest management cost; Therefore, the improvement of personnel labor efficiency can strengthen the increase of comprehensive profit, which will be focused on in the next chapter

this article emphasizes one point; Management should not only focus on results, but also on the process. The management of results should be based on incentives, which can most effectively mobilize the enthusiasm of the team and the potential of team members; The management of process and behavior is mainly based on system and punishment; It emphasizes the most basic working attitude and consciousness of employees

fifth, the surplus value profit created by the excess funds pried by the leverage of funds

dealers generally have a big problem, which is the lack of effective fund management: first, when there is no money, it is 1. With good high-temperature performance, find ways to borrow money or loans, and when there is more money, it is in the bank; Second, there is a lack of analysis and plan on how much working capital each brand and product needs; The result is that the utilization efficiency of funds is particularly low, and even the marginal income of funds is loss. On the one hand, the warehouse has a large amount of inventory, on the other hand, it also has to pay interest to lend

dealers should strengthen the management of funds, set the minimum and maximum inventory and annual capital turnover for each brand, and calculate the capital use efficiency of each brand according to the gross profit margin of the product. Then use the remaining funds as other investments to obtain residual value profits. For example, buy land and establish their own standardized warehouses and offices (one is to establish an image, the other is the value-added effect); Invest in shares, support their core backbone employees (those who want to start a business), invest and open up new distribution fields, etc. Later chapters are discussed in detail

the increase of dealers' profits is mainly achieved through the above five aspects. The strengthening and improvement of management in each aspect can easily increase the profit space of dealers by at least 10%. The key lies in the scientific and standardized management of dealers, the formulation of annual business plans and budgets, and the promotion in strict accordance with the business budget and systematic management

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