Are you a manufacturer or primary supplier of particular products? If so, you’ll be fully aware how important it is to have a good channel supply chain. You doubtless know how expensive it is to manufacture the products you make. The last thing you want to do is have a surplus of stock that no-one wishes to buy!
It’s the job of your channel partners to buy your stock and sell them on to distributors. They then resell them to retailers and other customers. You might have heard that some manufacturers offer incentives to their channel partners.
But, is that something your business should be doing as well? Or is it just a waste of your time and money? Well, it turns out that such incentives are a brilliant idea. Here’s why:
Your channel partners are like your employees
If you’re selling your products through channel partners, you will have people working for you to do that task. As you are doubtless aware, there is a need to reward your workers on occasion to maintain a high morale in the workforce.
There is no difference with channel partners in that respect. Although you don’t pay them anything as such, they still work for you by taking your products and selling them on. Without them, your firm would soon go out of business.
Selling direct to end users is a risky move if you mass-produce thousands of products each year. It’s more cost-effective to have a channel supply chain. But how good your supply chain is will depend on how well you treat or reward your channel partners.
They are your extended sales force
Another benefit to having a team of channel partners on board is they are, in essence, your extended sales team.
Sure, they buy volumes of stock from you to resell to distributors and other customers.
But, if other manufacturers give them incentives, they’re more likely to work harder for them and their products! That’s why it’s crucial to give out channel partner incentives that reward both you and them in many ways.
The incentives reward your channel partners for reselling high volumes of stock. And, you get rewarded by generating more profit from the extra revenue.
Incentives don’t have to cost the Earth
By now, you are perhaps thinking that the expense of any channel partner incentives is going to be high! The truth is; they need not be expensive! If you do a quick Google search, you’ll see a plethora of firms that package incentive rewards for businesses.
And when you enquire about the prices, they are often much cheaper than you’d expect them to be! Depending on what you make, you could even offer your channel partners free products that you create!
I hope today’s article has given you some insight into the importance of channel partner incentives. If your business doesn’t offer any right now, I highly recommend that you start doing so if you wish your company to grow. Thanks for reading!