Start Conversations with Distributors like a Pro

Have you ever watched the TV show, Dragon’s Den? The one where prospective entrepreneurs pitch their business ideas to multi-millionaire investors.

If yes, you may have noticed that what distinguishes successful entrepreneurs from the competition in addition to having a high-quality product is having a prepared, clear, concise, confident pitch.

In many cases, the key to success is knowing how to communicate effectively your business with potential business partners. The same approach applies when you have an innovative product and you want to start a conversation with distributors to expand into new markets. 

Building relationships with distributors is essential for any business that wants to grow and scale up fast into new markets. If you want to build a long-term relationship with a distributor, it is important to make a good first impression in your first conversation. Nevertheless, it’s easier said than done. Starting conversations with distributors can be a daunting task, especially if you haven’t done it before. That’s why, we gathered some useful tips that will help you to start conversations with distributors like a pro.

1. Research potential distributors

Before you even think about starting to reach out to distributors, it’s important to find the right distributors for your products. This is a main challenge for many small and medium-sized enterprises as there are thousands of distributors out there and you need to choose wisely who is the best fit for your product. If you want to learn how to find distributors for your product you can read this article, which will guide you through the process of identifying the right distributor for your business. 

2. Show your product’s traction

Once you have identified the right distributor in the market of your interest, you can start preparing your pitch. One of the most important elements you need to consider is to showcase actual numbers of sales that prove your track record and show strong potential for growth. Keep in mind that distributors usually look for innovations with a strong track record to add to their portfolios.

When a product or a product category is in high demand, it is obviously more attractive to distributors and subsequently to retailers. So, if your product is already successful in one market, it is more likely that it will be attractive in other markets as well. 

In addition, distributors may ask you questions related to your production capacity, quality of the materials, consumer feedback and consumer reviews. Their ultimate goal is that each new brand must be able to increase sales and profitability without competing with their existing brands’ portfolios.

3. Be clear about your goals

When you do reach out to a distributor, be clear about your goals. What do you want to accomplish? Do you want to enter a certain retailer? Are you looking for an added-value distributor who does all the marketing and translation or are you just looking for a distributor that sells your products online? Do you want to expand your reach in one specific market or multiple territories? Knowing what you want will help you focus your conversation and make it more productive. As we mentioned in the beginning, a successful pitch has to be clear and concise. Thus, try to include both your short-term and long-term goals in your pitch. 

4. Be Prepared

You never know where a conversation with a distributor might lead, so it’s important to be prepared. First of all, you must have a clear understanding of your products and their unique selling points. Also, try to answer the following questions in advance to be sure that you have a holistic perspective of the market and where you position your brand. Specifically try to address the following questions: Who are your competitors? What does your product provide that is different from your competitors? What is your pricing? Do you work with other distributors? and if yes in which markets? What kind of marketing activities do you use? 

These are some of the most common questions distributors may ask you when they are interested in your company. Last but not least, don’t forget to have the plan to follow up with them after the initial conversation.

5. Ask Open-Ended Questions

One of the best ways to start a conversation with a distributor is to ask open-ended questions. These are questions that require more than a simple “yes” or “no” answer. For example, you might ask, “What types of products are you currently looking to add to your portfolio?” This can lead to a more in-depth discussion about your products and how they might fit with the distributor’s business. 

6. Listen

Finally, it’s important to listen to what the distributor has to say. They may have insights into the market that you haven’t considered, or they may be able to provide valuable feedback on your products. Listening to their perspective, it can help you build a stronger relationship and improve your chances of success. Also, it is a great exercise to learn what are their needs and improve your pitch for your future conversations with other distributors. 

In summary, starting conversations with distributors can be challenging, but it’s an essential part of building a successful business if you want to expand into new markets fast. By following the above steps, you can start conversations like a pro and build strong relationships with distributors. Working with distribution partners is an excellent choice for companies that have market-ready products and want to expand fast.

Now that you have an idea of what a good conversation with distributors should look like, you can start the preparation. To make it easier for you, our team has worked with hundreds of distributors in the past and we have set up a platform to help you find the best pre-vetted distributors globally. You don’t need to search the internet, attend expensive trade shows, do extensive research, or hire expensive sales teams; we do all the work for you. On Tradesnest, you can connect directly with the best distributors in consumer electronics, start conversations like a pro and expand fast in over 80 markets around the world. 

So, if you are an innovative brand in consumer electronics and looking to expand your sales into new markets, we would like to invite you to register for free here and help you find the best distributors around the world for your product.