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The first is cooperation in shares. Choose several large dealers with sufficient funds and good reputation, and also attract other agricultural production enterprises to join in, set up joint-stock sales companies, and realize the integration of market resources. Manufacturers and merchants form a community of interests, from "you" and "I" The relationship becomes "us". However, distributors must sell according to policies formulated by the manufacturer. The dealer’s source of profit is no longer the wholesale and retail price difference, but the distribution of the company’s after-tax profits according to the number of shares.
The second is chain operations. Take the manufacturer as the main body and join up with the local powerful merchants to establish a joint-stock sales company and implement chain operations. This will eliminate most of the fertilizer manufacturers' concerns about the lack of funds in chain operations, and will also enable sales to directly face the market, communicate information in a timely manner, and better realize the company's sales policies. For manufacturers, chain operations can effectively occupy the terminal; for businesses, they can share higher profits without much investment.
The third is regional buyouts. Regional buyout means that the dealer pays a fee to the manufacturer according to the contract and obtains the exclusive distribution right of the product in a certain area, and is not subject to sales restrictions. The advantage of regional buyouts to manufacturers is that they can focus on production without regard to sales, and at the same time obtain an additional “buyout feeâ€. For distributors, because they have acquired the exclusive distribution rights, they can increase sales efforts to maximize their economic benefits.
The fourth is direct sales. This means that after the factory selects its own partner, it will send the salesperson to the merchant station, rent the warehouse to store the product, and jointly set the sales promotion together with the merchant. The unsold product property belongs to the factory, and the already sold product merchant promptly returns the purchase price to the factory. The factory pays the “profits for joint sales†to the merchant according to the amount of chemical fertilizer actually sold and the purchase price has been paid. The resident direct sales are first created by Anhui Liuguo Chemical Industry Co., Ltd. This model can enable manufacturers to maximize their market share without risk of recovery of goods, and businesses can also obtain stable returns.
Fifth, terminal promotions. In view of the current lack of scientific knowledge about farmer scientific farming and scientific fertilization, production companies can mobilize farmers' buying enthusiasm through product promotion and technology services, thereby stimulating sales by dealers and expanding sales. The main contents of terminal sales promotion are: creating atmosphere, product presentation, rural agricultural technology lectures, field trial demonstration, and counter promotion. When the product sales reach a certain amount, the enthusiasm of the third-tier distributors will be mobilized, and the enthusiasm of the secondary distributors and the general distributors will be mobilized, forming a virtuous circle.
Corporate Perspective: Fertilizer sales model should also improve and imperative
At present, the main sales models of chemical fertilizer companies include agency sales, distribution, joint sales, direct sales and agents. These sales models have their own characteristics, but there are also many problems, such as the low mutual trust of the manufacturers, many conflicts, the level of cooperation is too shallow, the manufacturers have poor control over the market, direct sales have obvious defects and so on. Therefore, it is imperative to establish a new sales model in today's market conditions. The following new modes are available: