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Indirect sales model

 
#1 Indirect sales model
16/03/2016 10:21

robert32

Hi there,

I'm currently gathering requirements for a drinks manufacturer who I met recently. We are looking to deploy a sales and marketing solution, but the approach to their business is one that I have not come across before.

Essentially, they work by visiting resellers (e.g. bars, restaurants and supermarkets) and promote their brand and incentivise the purchase of their product. However, the twist, is that they do not sell the product direct to the reseller. That is purchased through wholesalers who sell both their drinks and that of their competitors. So the profit is essentially second-hand from the sales/marketing engagement they are having with the reseller.

Is anyone familiar with this business process? If so, please can someone direct me to some further reading; so I can understand this in more detail?

Regards,

R.

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#2 RE: Indirect sales model
16/03/2016 10:37

Frio to robert32 (#1)

This sounds very similar to the way that Pharm Sales Reps sell to Drs. Maybe have a look at that.

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#3 RE: Indirect sales model
16/03/2016 11:08

robert32 to Frio (#2)

Thanks. Have you got any specific links I can look at?

R.

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#4 RE: Indirect sales model
16/03/2016 11:10

Frio to robert32 (#3)

No I don't - everything I know about this area is about 10 years old. I'm sure google can help.

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#5 RE: Indirect sales model
16/03/2016 11:15

marsday to Frio (#2)

This sounds very similar to the way that Pharm Sales Reps sell to Drs. Maybe have a look at that.

+1

The out-licence pharma model comes to mind also.

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#6 RE: Indirect sales model
16/03/2016 12:19

detoilet Consultant to marsday (#5)

Actually, I think this is common in the IT Industry too, especially with System Integrators etc.

Think of SAP, Oracle and Microsoft. They will turn up at big trade shows and have sales teams showing enterprise solutions etc. Try and buy an Oracle ERP solution it probably would come from a reseller - i.e Accenture or Capgemini etc.

I know with the likes of a Microsoft you can meet their salesman and they'll then advise you on a good / preferred partner - i.e Software Integration ltd to act as a commercial reseller and implementer of their solution.

Thing to remember is the reseller also has in their portfolio Oracle and SAP not just Microsoft.

Ok more complex than a drink but principle is the same.

DC

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#7 RE: Indirect sales model
16/03/2016 13:20

Mr Cool to detoilet Consultant (#6)

DC is entirely correct. I ran a practice in a niche consultancy on these lines. It could occasionally get a bit awkward , e.g. IBM sales manager convinces a client to build a new online business on their technology. As the tech sale is contingent on successful project initiation, IBM introduce client to expert consultancy who are approved IBM resellers.

Said consultancy analyses the requirement and concludes that the solution would be better/cheaper on Microsoft.

Oops.

What to do?

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