A new way to explore tire sales in 2013

Recently, news such as “hidden rules for tire sales ” and “secret prices that cannot be described by prices as tire dealers” have appeared in major media. At one time, the opaque tire prices have become the object of criticism.

In an interview with a reporter, a member of the surname Joe's staff of a domestic brand tire agent company attributed this phenomenon to: the relevant system is not perfect, supervision is not in place, and the manufacturer does not publicly guide prices. In addition, he also pointed out another very important factor: lengthy sales channels.

In 2013, the industry competition in China's tire industry will become even fiercer. In order to achieve better sales targets, efforts must be made to improve and upgrade the tire sales model.

The drawbacks of the "pyramid" structure

“The immediate disadvantage of tire sales structure with this kind of 'pyramid' is that it is difficult for manufacturers to control and manage, and the price is of course confused.” The staff member of the name Joe explained this way.

It is understood that at present, the domestic tire company's products are mainly sold through provincial agents (an agent), and then distributed through secondary dealers to the next level of distributors or retail stores. Manufacturers' services and policies are also implemented in this way.

A tire industry analyst at an information site stated that the “pyramid” sales model has powerful radiation capabilities and can play a huge role in the market for tire manufacturers’ products. However, when the market conditions are not good, its drawbacks are gradually emerging. .

According to the analysis, a complex level of sales will lead manufacturers to control the market and make tire manufacturers subject to distributors. Multi-layer structure sales also hinder efficiency, and it is not conducive to the formation of product price competitive advantage. In addition, this one-way, multi-level circulation makes it impossible to provide accurate and timely information feedback; moreover, many sales policies of tire manufacturers cannot be effectively implemented and implemented.

It is reported that some agents have tried the direct sales model, that is, facing the end customers directly. However, this model has not been widely adopted at present.

So, what are the problems faced by the direct sales model in actual operation?

Acting direct sales threshold high

Hebei Province, a brand of tire agents broke the mystery: the threshold for direct sales is too high.

"If you implement direct sales of agents, you will need to open retail and repair shops to counties and townships. The staffing and equipment costs will be enormous," said the agent.

It is understood that a county will generally set up 5-6 tire sales or repair shops. For example, there are currently about 60 county-level administrative regions in Shandong Province, which require more than 300 sales or repair shops to cover. In addition, each store needs to be equipped with tire-removing tires, lifts, small air compressors, balancing machines, and four-wheel aligners.

The investment in these supporting facilities, plus the cost of the staff, will require 300 stores to be built. I am afraid that any agent must weigh the amount.

[next]

Sales channels sink or break

So, is the current multi-level sales model irreplaceable? Is there a better sales model?

"You can sink the sales center into the county." The idea of ​​an industry person is to make some changes to the existing sales channels and explore a new sales model.

In the past, tire manufacturers had given many preferential policies to provincial agents to mobilize their sales enthusiasm. This person believes that these preferential policies can be directly given to existing county and township level distributors, thereby shortening sales channels and increasing the controllability of tire manufacturers to the market.

For some tire industry insiders, although this model is not yet mature, and it is not realistic to replace the existing model, it has brought new ideas to the tire industry sales model.

Head Gasket FORD

Head Gasket,Cylinder Head Gasket,Cylinder Gasket

Gasket Kit Co.,Ltd , http://www.nsgasket.com