Things You Should Keep in Mind When Choosing a Distributor for Your Business

. 8 min read
Things You Should Keep in Mind When Choosing a Distributor for Your Business

As a manufacturer, you need many additions to the business as business partners such as distributors and suppliers to showcase your product in the market and play around with the competitive products to become the customers first choice. It also means the expansion of your business on a large scale. Everything about the products matter, from branding to packaging: the product should be lovely and valuable to the customer.

As the marketing fundamentals are changing in the market, so are the thought processes of distributors. The product management indicates very much about the manufacturer and makes distributors very selective of their choices. Distributors tend to increase the business and expand geographically to reach every customer. Distributor tries to make a good partnership with the companies with great products.

Get to know your Distributor

If you have any product to sell in the market, then you follow the standard business rules. You can do it in the best way through the right distributor, all about your end-user of products and how you will make your products available quickly and win over their hearts.

The distributor is the way to capture your product's local and target market and become a catch for the customers. Choose the distributor who deals in the same line of products and has a powerful market position. It would be best to keep in mind a few tips while choosing a distributor for your product and business.

1. Area Coverage and Distribution

Make out detailed information about how much area is covered by them or if they have any plans of increasing their territory shortly. Do check on your competitors daily and what strategy they have while selecting a distributor for their product. Disturber should supply well in the target market and contribute to promotion and sales of the products. Distribute products at a high rate of reach to the end consumer. They should provide maximum efforts to sell products in the geographical area. Also, check out the distributors in high profile areas to sell your product significantly and follow the cost-effective protocols.

2. Financial Position

Know the market value of your distributor and how much financial capability he has. A high goodwill distributor creates more market capturing opportunities for the products. You can search online about the various potential distributors who will be an asset to the company.

You can place ads in numerous publications or be a member of trade unions to find the right distributor partner. That way, you can have a better on-ground report of the financial position of the distributor. Please make a report about their credit history and their recent purchases, the soundness of their payment process and quality service—good communication with the right distributors.

3. Professional Employees With High-Quality Marketing Skills  

Distributors must have competent staff for dealing and selling the products to the customers. Should have the correct number of staff for inside and outside sales who can provide market leads in the target market, provide service satisfaction to the customer, and analyse their change in the product's needs.

There are digital platforms to manage your staff by using apps like OkStaff easily to keep a better service record. It gives a smooth transaction of their salaries monthly with one touch on your mobile phone. It removes the hassle of keeping paper records and eventually losing them, which creates a lot of mess. It provides timely details to the staff and clarifies the chances of any false allegations of keeping records.

The staff selection process of distributors should include planning, better communication skills and financial management. Serving staff must know about the products they sell. Well trained staff leads to more business to both distributor and product owner.

Businessman hand touching MARKET VALUE button on virtual screen

4. Market Value and Goodwill

Distributors should have high market value and goodwill, which ultimately implies the services they provide. They better understand consumer needs and have an exceptional capacity to sell your products and give a thorough market review. They can forecast the number of future sales following their distribution and customer demand.

Distributors must have an excellent stock management system and maintain product health and soundness. Owners can easily carry the upside-down of the market and provide regular sales of the products. It will ultimately lead to vast product recognition and growth in sales. They should be committed to achieving the given sales target in time with the required resources and eventually better publicity. Right Distributor is the best marketing and supplying tool for a manufacturing company.      

5. Supply System Through Transport

Distributors keep a good stock in the facilities and keep the market supply speed intact. Full-time supply resources are required to reach the last customer and supply in good condition and on-time deliveries. They should supply through various transporting vehicles and be in the good books of the customer. It will ensure to keep your customers glued with the product requirements, which will make your product stand stronger against competitive market products. This way, the product will always be in the front of customers' eyes, making your product a substitute for other same category products.

6. Liberal Credit Policy for Consistent Supply

Manufacturer provides fixed cash discounts to the distributors to increase the sales, but that is not enough to increase the bulk sales. Companies should appoint distributors with a liberal credit policy for non-stop sales and marketing. They should have liberal financial deals with the customers according to their bond and trust to make endless sales. Manufacturers create an excellent asset for it if they employ these kinds of distributors.

7. Quick Payments

Distributors who have outstanding financial remarks always prefer quick payments via a digital app, cash or cheque. Prompt payments will maintain the working capital of the manufacturer, and regular cash flow will add liquidity to the business. Excellent services formulate a bond of trust and loyalty and emotionally connect customers with the manufacturer's product. Distributors should be technically advanced and use every payment option such as Whatsapp, Phone Pay, Google Pay, Paytm, and credit and debit cards.

woman customer's hand make a quick and easy contactless payment in cafe


Many distributors like to use digital accounting platforms to perform various uses in one place. Such is OkCredit, which records all the transactions online and readily shares the reports and statements to the customer.  

Manufacturers are not the only player in the market; even end-users can change the market game. It is wise to make long-lasting business partners who also build trust between them and sustainability in the market. Distributors present your products efficiently and further increase the supplies with utter customer satisfaction. They will also show growth in the supply and demand charts of the product and increment in the brand value and brand name.

We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
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How to enable GST in tally How to cancel a cheque How to check bank balance online

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Q. How to search for a suitable distributor?

Ans. While searching for a suitable distributor, don't forget to collect the history of distributors kept by your competitors' brands to increase your share in the target market. Collect the references from all over the market and the areas you want to cover. You can reach the personnel online via emails to exchange introductions and showcase the production plan. You must convince the distributor that you are selling a better product than your competition and create benefits and profits.

Q. How to know the financial background of a distributor?

Ans. Collect the annual sales report and assess their financial stability. Know all the products they sell and how many customers they attend daily. Every minute detail will increase the chances of getting a stable position among many. It would be best to have a clear idea about what you want from your distributor and that you are ready to expand your business and marketing your product.

Q. How to make a deal with the distributor?

Ans. Make sure you present the finished products to your distributor and make a good deal while finalising. Both are responsible for the high demand sales and a good business perspective. A well-managed system will ensure a smooth running of the business at a large scale. But you can make accounting easy by using digital accounting apps to record anytime, anywhere as the OkCredit app facilitates your varied services to hassle-free accounting.

It is a safe and secure method to keep your data in the modern age. Create online reminders, records and account statements in one place. You can also safely make a backup online and offline in your system. It also provides multi-language support to deal with your customers, which is why this is the best accounting apps available online.

You can follow the above tips and consider them while searching for a potential distributor for your business. Inserting a distributor will add wings to your growth possibility and make a space for your product in the market. Make a long-lasting market chain for your product and form a sustainable business environment.