The document provides 17 tips for manufacturers to effectively sell through distributors. It begins by defining symbiosis and explaining that manufacturers sell through distributors because it benefits customers to purchase from distributors, and distributors provide key functions for both customers and manufacturers. These tips include selecting distributors that match the manufacturer's business model, clearly communicating policies, building personal relationships with distributor personnel, conducting joint planning, setting and providing feedback on expectations, soliciting distributor feedback, creating programs for large projects, joint marketing activities, training programs, demonstration centers, field representatives, recognition programs, quick credit decisions, regular communication, simplifying policies, and generating excitement.

1. 17 Tips for Selling Through Distributors Steve Smith Equipment Industry Veteran

2. SymbiosisFrom Webster’s New Collegiate Dictionary - The intimate living together of two dissimilar organisms in a mutually beneficial relationship

3. Manufacturers Sell Through Distributors because: Customers find it in their best interests to buy from distributors The functions distributors perform– for both customers and manufacturers

4. Functions Distributors Perform for Customers include: Product application Supplier recommendations Order processing Expediting New ideas Credit & Financing Final quality check Logistics Local delivery Warranty administration Information Local inventory Customization Engineering & Layout Permitting,compliance Training Create packages . . . .

5. Functions Distributors Perform for Manufacturers include: Local marketing Sales Initial order processing Local compliance Local inventory Customer interface services Credit Provide working capital Warranty administration Service Competitive market intelligence Packaging projects Logistics Final quality check Problem solving Engineering . . . .

6. Tip Number One Select Distributors Matching Your Way of Doing Business --- and Who Can Meet Your Expectations

7. Tip Number Two Be Clear about Channel Distribution Policies; Communicate Changes in a Straightforward Manner, on a Timely Basis

8. Tip Number Three Build and Encourage Personal, Professional Relationships with Key Distributor People

9. Personal, Professional Relationships with…. Principals Sales executives and salespeople Order Processing Technology / IT Accounting Peer to Peer

10. Personal, Professional Relationships: Objectives-- Trust Free, clear communication Commitment to your company Honest feedback Plus . . . .lots of other tangibles and intangibles

11. Tip Number Four Conduct a Joint Planning Process with Key Distributors

12. Potential Areas to Explore for Joint Action Planning Sales forecasting Salespeople – levels, quality Training Branch operation / areas of coverage Target markets New Products Inventory levels and lead times Payment Practices Service / Design issues Service / Other distributor capabilities Warranty administration Technology relationship / requirements

13. Potential Areas to Explore for Joint Action Planning Manufacturer representatives calling on distributor Web strategies / links Joint advertising Catalog / collateral exposure Lead generation activities Trade show participation Customer events Cooperative advertising funds Discount / Rebate programs Focus product programs Large job early warning system

14. Tip Number Five Be Clear about Expectations How will you help distributors achieve these?

15. Tip Number Six Give Regular, Consistent, Clear Feedback on Mutually Agreed Upon Expectations

16. Tip Number Seven Solicit and Listen to Feedback from Distributors

17. Feedback about - - - The market Competition Your customer service Your policies, people, products, pricing , performance. . .

18. Tip Number Eight Create a Big Job Early Warning System

19. Tip Number Nine Create Opportunities for Joint Marketing Activities

20. Special Focus Mutually Supportive Internet / Web Strategies

21. Tip Number Ten Provide Product Training . . . . In a Sales Effective Manner

22. Tip Number Eleven Create a Demonstration Center / Showroom Include a system to encourage / expect its use by distributors with their customers

23. Tip Number Twelve Provide Effective, Professional Field Representatives

24. Tip Number Thirteen Create Distributor and Salesperson Recognition and Acknowledgment Mechanisms

25. Tip Number Fourteen Make and Execute Decisions Involving Credits to Distributors Quickly

26. Tip Number Fifteen Communicate Regularly with Front Line Distributor Salespeople And, Say “Thanks” --- a Lot!!

27. Tip Number Sixteen Simplify Pricing, Discounts and Other Distributor Policies Particularly Those Affecting Front Line Salespeople

28. Tip Number Seventeen Generate Some Fun and Excitement!! A Sense of Forward Motion!!

29. Make your Distributor Relationships work for you!!

30. Steve Smithwww.equipmentfx.comsteve@equipmentfx.com936-499-4644