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How to Improve the Core Competitiveness of Automobile Parts Dealers

Datetime: 2019-03-09 07:35:02    Views: 901

There are many auto parts dealers who have been mixing with rivers and lakes for more than ten years. They have maintained a dismal state of operation for three or five people, a small shop with more than 10 square meters. Looking back, many rising stars are already calling for wind and rain and laughing at Aojiang Lake.


The modern society is always full of opportunities and gold everywhere. The key lies in whether everyone has this vision, courage and financial fortune to grasp. The starting point of dealers is mostly relatively low, and the foundation is relatively weak.


Means of operation are much the same, but their destinies are quite different. The fundamental reason is that people"s judgments on the market, the control of sales network, internal management level and the pursuit of future development are very different.


No matter which industry an enterprise is engaged in, if it wants to be in the leading position in the industry, it must enhance its core competitiveness. As a distributor of spare parts, where does its core competitiveness come from?


First, the foothold of auto parts dealers:


Distribution network


The positioning of auto parts dealer market is channel transfer. The main purpose of the factory to set up distributors in various places is to cover its products to the retail terminals of various markets through distributors.


The distribution network controlled by distributors is the first condition for enterprises to choose distributors. The distributor is the link between the manufacturer and the retail terminal. Through the circulation of goods to earn factories decomposed profits.


Therefore, the more complete and systematic the distribution network of distributors in their own business area, the higher their position in the hearts of manufacturers, and the greater their sales probability. When establishing their own distribution network, distributors should avoid the following four misunderstandings:


1. The wider the distribution coverage, the better.


Some distributors have just started, they are eager to locate themselves in the provincial or even provincial scope; they do not consider their economic strength and operational capacity at all. I think the distribution area has been expanded and the sales probability has been increased. Broad planting and thin harvest, can be a little harvested. In fact, the actual effect is not so.


Distribution areas beyond their control can easily cause waste of limited resources and low efficiency. It is also difficult to achieve the target set by the manufacturer, and it is difficult to get the strong support of the manufacturer. With the promotion of the operation of the factory market, it will divide the half-baked market that you operate out and result in making a wedding dress for others.


2. The wider the distribution system, the better.


Distribution system of distributors can generally be divided into four types: modern channel (business super system), traditional channel (circulation system), catering channel and special channel.


Some distributors are accustomed to multi-faceted blooming, all systems do. But the effect is just the opposite.


There are three main reasons:


First, the shortage of liquidity is caused by insufficient capital reserves.


Secondly, the characteristics of product structure determine that some channels have high operating costs, which are not worth the loss.


Thirdly, dealers"social public relations capabilities have their own strengths, and there are insufficient social resources for the operation of some channels.


3. The more distributors, the better.


Some distributors think that if there are more distributors, the market coverage will be high. The operation of distributors can not only accelerate the turnover of funds, but also reduce the tedious work pressure of marketing. So many distributors are willing to develop distributors on a large scale. But don"t forget that there are many distributors who will mine themselves.


One is that distributors are willing to pick up goods from you when they have small quantities of products; once a product becomes larger, they think of an independent portal. Let you lose your sales area for no reason.


Second, the distributor is often the "culprit" of the rush goods, the factory can not punish the distributor, this knife often falls on your head.


4. The thinner the distribution profit, the better.


Many distributors in order to attract distributors, their profits are getting lower and lower, or even flat out, to earn a little rebate from manufacturers.


Its purpose is to:


First of all, the profit is too small to sell, the profit is too small, but the amount is too large to make money.


Secondly, the product is not profitable, but distributors help sell other profitable products.


But in practice, there are still many disadvantages in this mode of operation: dealers should seize the opportunity to make the money. For some products on the rise, how low the distribution profit is, it will miss the opportunity to make money; let the distributor develop the habit of bargaining, it will threaten with price; it will cause manufacturers to slow down. Disturbing the price of products is liable to be punished by manufacturers.


2. The operation of auto parts suppliers:


Cash flow smoothly


In business dealers, distributors have two essential conditions:


One is the network, the other is the fund. The distributor is in the middle between the manufacturer and the retail terminal. At present, the general requirement of the factory is cash spot, with a good line of credit. Most retail terminals have accounts receivable.


Distributors"financial strength often determines their scale of development. In order to maintain the normal operation of business activities, it is necessary to maintain the smooth flow of funds. Distributors should pay attention to the following points in maintaining the smooth flow of cash flow:


Control the quantity of products in operation. Many distributors are corrupt; the more products they handle, the better. Distributors believe that: operating more products, customer resources can be fully utilized, distribution costs will be reduced. It will also increase new sales opportunities. But too many varieties will distract your business capital and attention when your core product strengths are weakened. The Distributor shall deal in the variety of products.