Do You Have the Right Sales Channels for a Downturn?
Major economic downturns hit most companies. And manufacturers who sell to their customers through channel partners, such as retailers or value-added resellers, face additional challenges. Under-capitalized partners may be unable to get products to customers — or worse, could go bust. With the current pandemic, the situation appears dire, with even more bankruptcies predicted than occurred during the global financial crisis of 2008-2009.
Manufactures that sell their products through channels (such as retailers or value added resellers) must rethink strategy as the recession continues. They may need to rethink the mix of revenues they seek from different channels, the partners they use in each channel, and the incentives and commissions used to drive sales in a particular channel. Ask these questions proactively, instead of simply hoping things return to normal.