Over the last few years the rapid expansion of the market economy has made it necessary for companies to take their products directly to the consumers. In the competitive market no can afford to stay indifferent to the cycle of demand and supply. It is in fact one of the main aspects of market economy that the price of commodities is controlled by the relation between the demand and supply of different products in the market. Hence, it is the priority of most of the business owners nowadays to create a good demand for their product in order to have a good return on their investment. This is where distributors, franchisors and sales agents come in to the scene. The main task of distributors is to take the products from a particular company to the masses in order to facilitate better business prospects. But it is easier said than done. Distributors, franchisors and sales agents have to face a number of problems in courses of their business.
Connecting with the company
The main problem faced by prospective entrepreneurs who want to invest money in the distribution business is to connect with the decision makers of the company. It has been seen that in most of the cases distributors are not able to conduct the business in the desired way due to lack of communication with the company. Even if someone is interested in getting the distributorship of a particular brand the inability to communicate with the decision makers of the company can put a full stop to the initiative. Hence distributors should be able to connect with the company in a proper way in order to conduct the business successfully.
Failure to cover all retailers
Distributors are often faced with the problem of failing to cover all the outlets or retailers they are designated to. It is true that in spite of the fact that distributors try their best to cater to the needs of all the retailers, it is not always possible for them to cover all the outlets either due to lack of manpower or due to less than required supply of products. As a result they are sometimes not able to cater to the demand of the consumers as well as the retailers, thus hampering the business to a large extent.
Financial issues
It has been seen that many distributors suffer from financial problems due to poor money management. Poor cash flow is something that distributors are vulnerable to and hence should be taken care of properly. Lack of experience in managing a business can lead to financial problems in an organization and so new distributors should be careful enough while conducting their business.
It is needless to mention that distributors are the main pillars of the business of a company and so the problems that distributors, franchisee owners and sales agents are faced with should be dealt with properly in order to generate the desired revenue for the company. Once the problems are sorted out and solved, both the distributor and the company can savor the taste of profit.
Connecting with the company
The main problem faced by prospective entrepreneurs who want to invest money in the distribution business is to connect with the decision makers of the company. It has been seen that in most of the cases distributors are not able to conduct the business in the desired way due to lack of communication with the company. Even if someone is interested in getting the distributorship of a particular brand the inability to communicate with the decision makers of the company can put a full stop to the initiative. Hence distributors should be able to connect with the company in a proper way in order to conduct the business successfully.
Failure to cover all retailers
Distributors are often faced with the problem of failing to cover all the outlets or retailers they are designated to. It is true that in spite of the fact that distributors try their best to cater to the needs of all the retailers, it is not always possible for them to cover all the outlets either due to lack of manpower or due to less than required supply of products. As a result they are sometimes not able to cater to the demand of the consumers as well as the retailers, thus hampering the business to a large extent.
Financial issues
It has been seen that many distributors suffer from financial problems due to poor money management. Poor cash flow is something that distributors are vulnerable to and hence should be taken care of properly. Lack of experience in managing a business can lead to financial problems in an organization and so new distributors should be careful enough while conducting their business.
It is needless to mention that distributors are the main pillars of the business of a company and so the problems that distributors, franchisee owners and sales agents are faced with should be dealt with properly in order to generate the desired revenue for the company. Once the problems are sorted out and solved, both the distributor and the company can savor the taste of profit.
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