I believe that most lamp business friends often feel anxious about the new names proposed by some big shots, and what channels are flattened; What goes to middlemen; What C2M (customer to factory); What is the online and offline competition between Jack Ma and Wang Jianlin, gambling for a hundred million yuan... With the arrival of mobile internet, we have access to various types of information every day, making it even more difficult for lamp merchants who were originally confused in the changing market environment to find an answer. So today we will talk about marketing scams in channels from a retail perspective

I believe most people have seen an advertisement for a used car that says, "No middleman earns price difference, sellers sell more, buyers spend less

I believe many people have been sold by Amway. We sell directly without any dealer markup, and the price is more affordable.

In the first few years, some large stores such as Carrefour also advocated manufacturers to bypass dealers and supply directly to retail terminals, calling for "channel flattening", so that there would be more profits, more resources and so on.

In recent years, e-commerce has emerged, and platforms such as Taobao, Tmall, and JD.com in the lighting and lighting industry are also clamoring for "disintermediation and direct sales from manufacturers" to benefit consumers and increase profits for manufacturers.

Even those who set up stalls on the road are shouting, "The boss of the bastard, Huang He, is eating, drinking, whoring, and gambling, and he ran away with his sister-in-law. What was the original price? Now, it's all 10 yuan, and it's definitely direct sales from the manufacturer

They set the 'distributor' on the opposite side of people, taking advantage of the fact that people only recognize the production cost of a product and do not recognize other costs such as the circulation of the product. The implicit premise is that distributors are "vampires" who only make profits without providing value. Take them away, buyers and sellers meet directly, and both sides take advantage, everyone is happy, "he is good, I am good.

Let's first popularize the basic knowledge about distributors. Master Kotler's marketing management, looking at the economic effect picture of distributors in channel management

The figure shows that utilizing distributors is the main source of achieving economic benefits. Isn't it a bit counterintuitive, but that's marketing common sense.

Part A shows three producers, each using direct sales to reach three customers, and this system requires nine transaction contacts.