The Business Philosophy of Grain and Oil Distributors: Winning Steadily

Currently, the entry threshold for the grain and oil industry is relatively low. As long as you have money, you can take on a brand agency, or you can operate as a secondary wholesaler without an agency, or you can even bring in goods from nearby counties and cities or divert goods across regions. The market is huge, and most end retailers go by price rather than recognizing a specific agency. Some might wonder, what about near-expiry products that need returns or exchanges? That is not an issue. Competition in the market is too fierce, and whoever handles returns and exchanges gets the end retailer's business.

On top of that, profit margins in the grain and oil industry are now relatively small, and operating costs are relatively high: the cost of stockpiling goods, credit sales, and various fees in supermarkets. So grain and oil distributors are having a rather tough time these days. Some distributors need manufacturers to increase subsidy costs, but manufacturers have it tough too. Subsidies have standards. There is no free lunch in the world. If you want to gain more, you have to be willing to give up more.

Distributors can calm down and think: can some costs be saved at the end-retail stage? For example, negotiating cash settlement with supermarkets, supermarket sales deductions, promotion management fees, etc. Also, pay more attention to market trends, and judge order quantities based on your actual inventory and sales volume. Manufacturers will roll out some attractive ordering policies. Watch the market more. When it is time to act, act. When you should order more, order more. When you should not order, do not order, to prevent tying up large amounts of capital.

Secondly, at the sales stage, increase investment in blank markets and intensively cultivate township markets. Do not underestimate township markets. Although order quantities are small, there are many end retailers. Nowadays people are unwilling to make wasted trips; they all buy nearby, however is convenient. Some village shops also have considerable sales volumes, and such points cannot be missed.

The distribution stage is also very important. Require sales staff to ensure product placement is in place. When necessary, use DingTalk check-in and location tracking to prevent some sales staff from slacking off and sleeping under a tree. Secondly, increase distribution efficiency and deliver goods promptly, avoiding situations where a customer orders and it cannot be delivered for one or two days. Plan reasonable routes. When it is time to add delivery vehicles, add them, or bring loading and unloading workers along with the vehicle to speed up distribution efficiency.

Finally, there are currently too many edible oil brands in the grain and oil industry. Distributors must strive for quality, not quantity. Do not carry too many brands, two to three brands at most, otherwise stockpiling will crush you. Now you must win steadily, lay out more points, cultivate intensively, combine urban and rural areas, and win through service!