Improving the comprehensive gross profit margin is a hard work for dealer bosses. When you pay attention to the comprehensive gross profit margin, it means that your operation and management have reached a certain level. To improve the comprehensive gross profit margin, we must rely on the "crowd tactics" to mobilize the strength of all employees of the company, and the dealer boss alone cannot improve the comprehensive gross profit margin. The key to improving the comprehensive gross profit margin is to mobilize the power of salesmen.
So how to do it? Today, Mr. Mei Mingping will introduce you to a few simple and effective methods.
First, the reform of the bonus system for salesmen
To improve the comprehensive gross profit margin, the most important key is in the hands of the salesman. Because all products are sold from the hands of the salesman, what products are sold and what price each product sells are controlled by the salesman. So, under what circumstances, can the salesman take the initiative to improve the comprehensive gross profit margin? This requires the adjustment of the salesman's salary system, the sales commission system to the profit sharing system.
In the past, the vast majority of dealers used the sales commission system when calculating bonuses for salesmen, in this case, the salesmen pursued the level of sales, and did not care about the comprehensive gross profit margin. In order to allow retailers to purchase more, salesmen often apply for promotional policies from dealer bosses, which will further lead to lower and lower comprehensive gross profit margins. Therefore, the only way to mobilize the power of salesmen to improve the comprehensive gross profit margin is to change the calculation method of salesmen's bonuses, from the original sales commission system to the profit sharing system.
Once the dealer adopts the profit sharing system to settle the salary and bonus for the salesman, you will suddenly find that the salesman who has always been lavish is actually more "stingy" than the dealer boss. In the past, dealer owners wanted to do promotional activities, and salesmen were the most welcome. But now, as soon as I heard that the dealer owner was going to do a promotional campaign, he immediately stopped it. If the dealer boss says that he is facing competition now and is worried that the retailer will not buy the goods, what do you think the salesman will say? I guarantee that the salesman will pat his chest and say: Boss, don't worry, I can handle it myself!
It can be seen that employee behavior is the product of the system!
2. Increase product prices
There are two ways to increase the price of a product.
The first way is to increase the price of ancillary products. Raising the price of ancillary products refers to slightly increasing the price of products with small sales volume and high gross profit margin, even if the sales increase is small, the profit will increase significantly. So why is it possible to slightly increase the price of products with small sales and high gross margins? Because consumers are not sensitive to the price of these products.
The second way is to increase the price of a best-selling product. Consumers are very sensitive to the price of best-selling products, and generally do not raise the price of best-selling products, but never sell them at a lower price.
Dealers should not easily reduce or discount best-selling products with low gross profit margins. At the same time, in the process of selling products, dealers should determine the minimum price limit for best-selling products to ensure that the goal of comprehensive gross profit margin is achieved. If you can increase the price of a best-selling product by 1% without affecting sales, it is recommended that dealers can be bold and experimental, after all, best-selling products can increase profits much faster than ancillary products.
3. Increase the sales of single products
There are many categories operated by dealers, and the gross profit margin of each category is different, and the sales volume is also different. The most important task of the dealer is to find out the single products with large profit contributions, which can be called "golden single products", and tell these single products to the salesman, and ask the salesman to continue to increase the sales of these single products, so as to achieve double growth in profits and comprehensive gross profit margin.
Fourth, increase the sales of a single store
Distributors work with hundreds, if not thousands, of stores in both traditional and modern channels, and the profitability of each store is different. Dealers should formulate monthly and annual store profit rankings, find out the stores with the highest profits, and call these stores "gold stores", and vigorously support them in terms of manpower, material and financial resources, arrange the best salesmen to provide support and services, and tilt resources to these gold stores to further increase profits and improve comprehensive gross profit margins.
5. Structural adjustment
Distributors can try to make appropriate adjustments to the product structure and channel structure. For example, the sales of products with high gross margins accounted for 10% and now account for 20%, and the sales of products with high gross margins in sales channels with high gross margins account for 15% and now account for 30%. Best-selling products with low gross margins do not need to be promoted by dealers, and dealers need to spend their energy on products with high gross margins that are not easy to sell. In the same way, low gross margin sales channels do not require dealers to spend energy on maintenance, and dealers need to spend energy on sales channels with high gross margins.
Sixth, get the manufacturer's rebate
Factory rebate refers to the discount reward given by the manufacturer according to the sales situation of the dealer. Dealers should study the manufacturer's rebate policy carefully in order to obtain the manufacturer's maximum rebate and improve the comprehensive gross profit margin. Factory rebates come in the following forms. According to the cycle of rebates, they can be divided into monthly rebates, quarterly rebates and annual rebates. According to the basis of rebates, it can be divided into sales rebates, task completion rebates, single product rebates, new product rebates, exclusive sales rebates, and non-channeling goods rebates. The manufacturer's rebate policy is generally written in the distribution contract signed with the dealer, or in the annex to the contract, and some temporary rebate policies are notified to the dealer by the manufacturer's salesman in a timely manner.
7. Apply for personalized promotion from the manufacturer
Manufacturers have both nationwide promotions and personalized promotions for individual dealers. In the special situation of individual dealers, such as store celebrations, competitors' vigorous promotions, etc., it is difficult to compete with the dealers alone, and they need to obtain strong support from manufacturers. If personalized promotion works well, the manufacturer will give you even more cost support than your own gross profit.