Article
How to Best Manage Channel Conflict (and How to Prevent It)
thegood.com
Quoted on this wiki
Every place a page here uses this source, in the order the words come in it.
It’s good for the customer. We often speak with clients whose primary concern is sales. Others are worried about offending their distributors. But those aren’t the best way to frame your channel approach. Our philosophy is that every decision should begin with concern for the customer. When customers are pleased, demand is high and sales are good. Never lose sight of who really provides paychecks for your staff and employees. By developing that mindset in all you do – including your agreements with retailers and others in your distribution system – you’ll all have the same goal in mind. When the customer is happy, every part of every channel works better. “Make sure that’s a trade you’re willing to make.” You have a strong DTC brand. The stronger your brand and customer base, the more leverage you’ll have when you negotiate contracts. Think of it this way: When a retailer partners with you, they’re placing a bet that your product will sell. If you can minimize how risky that bet is, you can secure better terms for your brand. And the best way to minimize that risk is to have an established presence with strong sales.
One added Amazon as a channel, dropped it, and experienced more success sticking with DTC. Another started on eBay and added DTC later, along with a myriad of other channels. And the third built a notable DTC presence then added Target. “there’s rarely a one size fits all solution to big questions like these.” BeardBrand stopped selling on Amazon — and increased business 20%
However, store owners looking to expand the ways they distribute can minimize potential conflicts by: “Assessing whether new channels are a good fit for your brand before adding them” Understanding the types of channel conflicts and why they occur
Instead of authorizing a price reduction for retailers, offer a gift with purchase or some other add-on. For example, a free pair of socks with shoe purchase. “Your fans will love it, and your entire sales channel will benefit from the added exposure and marketplace chatter.” It’s a win-win-win: The customer, the manufacturer, and the rest of the sales team all benefit.