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Sales channels to reach your customers

Selling through retailers, wholesalers and other distributors
Selling through an intermediary may be a more cost-effective way of reaching your end-customers than selling to them directly.

If you are targeting business customers who prefer to deal with large suppliers, selling directly to them may not be a realistic option. Instead, you might aim to supply wholesalers who have existing relationships with those businesses.

If individual consumers buy low value quantities of your products, the best option might be to target retailers that sell similar products. Or you might choose to focus your efforts on a relatively small number of wholesalers who can in turn supply your products to many retailers.

Other distribution channels may also reach your end-customers. For example, technology suppliers often sell to resellers who can configure and install the technology to suit end-users’ particular needs.

Managing your distributors
You need distributors who will value your product. If they sell competing products, what will make them push yours?

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Think about how you set your prices. Distributors will be more enthusiastic if they can make a large profit – but setting too low a price will eat into your own margins.

Effective advertising and promotions can be vital. As well as marketing to the distributor, you can promote your products directly to end-customers. Distributors will be keener to stock and sell products that their customers are asking for.

The key terms of the supply relationship should be covered in a written contract. Key issues might include:

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how much stock the distributor will hold
what the distributor will do to promote your products
how quickly you can resupply and minimum order levels
whether the distributor has exclusive rights to your product (for example, in a particular territory)
what happens if either you or the distributor want to end the relationship

 

Business ideas, Marketing and sales , promotions and advertising ideas , articles 

 

What Determines People to Buy Your Products?

Home » Business Model » What Determines People to Buy Your Products?
September 11, 2017 Frank Bullock Business Model
There are many aspects that can influence a person to buy one product or another. From budget and personal psychology, to carefully designed brand reinforcement, everything has an effect on the buying habits of various people. Many business owners think that there is a clear recipe for success, but the ingredients vary from one situation to another.

Needs

This is probably the most important aspect that determines people to buy anything. The challenge is to make your customers feel like they need to buy your particular products. Say someone saw a pair of running shoes in a commercial, but since they do not go jogging, they would not feel the need to buy them. However, if they were to read an article about how running shoes offer excellent support to those who walk a lot and increase the chances to feel rested at the end of the day, that person might actually consider buying the running shoes from the commercial. But for this managers need to have vision and groom potential customers to appreciate even the products they do not actually need.

One way to create the demands for your products is to invest in detailed leads. For example, if you own a b2b business, consider buying a list of business leads that contains valuable lead information. Lead list providers like sales ripe offer a lot of detailed information on each list. From company size, to volume of sales, and technological preferences, their business leads come with all the information that you need to create the need for your product and close the deal.

Appealing the visual memory

There is a reason why many companies choose to spread various T-shirts, caps, pens and other products and that is because it offers customers the chance to have a visual of the company logo at all times. In addition, by wearing a T-shirt with your company logo on it, people will actually offer you free publicity and even inspire their friends to ask about your brand. So the next time they are in the shopping isle and do not know what to choose, they will remember their t-shirt and choose your company. The same goes for those who want to eat out and have no idea of where to go, you can count on the fact that at least half of them will choose your restaurant.

Price

There are various marketing strategies involving the price and every company is free to choose its own, but experts recommend business owners not to start with a very low price from the beginning, as the price will determine the perceived value of your product. If your prices are too low or you offer a large discount from the beginning, people will be more reluctant to buy your full-priced products. The prices should be carefully considered and designed so that they enhance the perceived value of the product and yet determine people to buy the products.

When you take into account all of these factors, you start to understand the customer and thus you are able to create a strategy that will work for your business and help you to increase your sales considerably.

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