Monday, December 14, 2009

A powerful incentive for dealers

Corporations that sell through sales channels often ponder on which is the best way to motivate their dealers. How much money? How much hold-back on the product? Should it be a tiered discount system? Should there be sales incentives?

Sure, money is great as an incentive, who can so no to more money? But there is another option if you (the manufacturer) qualifies.

If you have a hero product, the kind that sells itself, the kind that is the one product that the sales channel is begging you to send more of, then use it as an incentive.
If you manufacture five products and you want all five to be represented by the sales channel (not just the hero), then reward the channel with more hero product to sell if it also sells a mix of the other products (you determine the mix). This will force the channel to focus on the other product--they will have to learn about it, be trained on it, and actually generate business for those other products. The channel will make more money and they'll also be able to sell more hero product,too. And by the way, the manufacturer makes more money.

Now all the manufacturer has to do is be able to make more hero products...

Barry LaBov
LaBov & Beyond

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