Servicing micro-retailers – 10 ways distributors can add value to your business

Distributors in emerging markets can add enormous value to your business when servicing micro-retailers. Below are some issues to consider:

    1. Knowledge– they know their customers and distribution area very well and can provide you with valuable customer insights.
    2. Provide credit– many distributors provide credit to smaller outlets and they have the ability to collect regular payments.
    3. Stockholding– they provide warehouse space and it reduces your company warehousing space requirements.
    4. Delivery– delivering bulk to your distributors will reduce transport costs as distributors will deliver smaller quantities to their outlet base.
    5. Frequency– distributors provide regular delivery services and, in some cases, can provide daily delivery upon request.
    6. Trading hours– distributors can provide delivery services after hours and over weekends.
    7. Complementary products and services– distributors provide complementary products and value-added services.
    8. Promotions– dealer initiated promotions can further increase your sales.
    9. Competitor activities– having established a good relationship with your distributor they can also provide you with information about competitor activities.
    10. Feedback– distributor sales team can discuss new ideas and product offerings with their customer base and provide you with valuable feedback.

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