For many Indian manufacturers, dealers and distributors are the business. A tile plant, a pump maker or a paint company may have hundreds of dealers, each with its own credit, its own schemes and its own way of ordering on WhatsApp. Running them well is mostly about a few numbers kept current.
01Territories and terms
Write down each dealer's territory, the products they may sell, the price list and the credit term. Overlapping territories cause price wars between your own dealers, which hurt everyone.
02Credit limits that are followed
Set a credit limit for each dealer from their sales and payment history, and hold dispatch when an order would cross it, unless a named person approves. See setting credit limits. Review limits every quarter: raise them for dealers who pay early, and cut them for those who are slipping.
03Schemes without disputes
Quantity discounts, cash discounts, turnover targets and festive offers drive sales, and they cause most of the year-end arguments. Put each scheme in writing with its period, the products included and how it is paid, as a credit note or a free quantity. Track each dealer's progress during the scheme, and settle it within a month of the end.
04Orders and secondary sales
Primary sales are what you sell to the dealer. Secondary sales are what the dealer sells on. A dealer whose stock keeps rising while secondary sales fall will soon stop paying on time. Ask your bigger dealers for a monthly stock and sales statement, or for access to their sales figures, and watch the gap.
05Dealer health in one view
| Measure | What it tells you |
|---|---|
| Sales this month against last year | Growth or loss of share |
| Days of credit used | Payment discipline |
| Overdue above 60 days | Risk |
| Months since last order | Dealers going quiet |
Review the list monthly with each area sales manager. Dealers going quiet need a visit before they move to a competitor.
In MatruOS, dealers are customers with territories, limits and schemes; the Sales executive turns phoned or forwarded orders into draft orders, and dispatch is held when a limit would be crossed until someone approves.