Product management is a critical component of manufacturers’ and resellers’ roles that is difficult to navigate. After all, product management helps enable manufacturers and resellers to do their jobs more effectively. For example, a few product management strategies encourage manufacturers to know the structure of reseller agreements. This agreement ensures manufacturers and resellers receive a fair deal all the time.
Manufacturers and resellers have a symbiotic relationship. Manufacturers need to be able to produce products in high volumes because resellers need the manufacturers to create a steady supply of products. On the other hand, resellers are manufacturers’ primary point of contact with customers. Manufacturers rely on resellers to spread the word about their products.
The Role of Manufacturers and Resellers
There are plenty of roles that manufacturers and resellers play in today’s market. Before manufacturers can work effectively with various channels, they need to understand how each part is different. That way, manufacturers know what type of customer engagement manufacturers can expect from resellers.
Manufacturers are the ones who design and manufacture products for resellers to sell. They also generally handle logistics such as packaging, shipping, and returns for manufactured goods that end up in a reseller’s warehouse before being sold to customers on their behalf.
On the other hand, resellers often deal with manufacturers directly to negotiate and pay the manufacturers for their products. These resellers include wholesalers, distributors, and retailers who can then sell these goods to consumers on behalf of manufacturers.
Manufacturers and resellers need to work together to ensure profitability and growth. After all, their relationship is mutually beneficial as manufacturers require resellers to sell their products and resellers need manufacturers to have goods to sell to customers.
Creating a Product Management Strategy
A product management strategy is essential to manufacturers and resellers for them to maximize their profitability. The following tips can help manufacturers create an effective product management strategy:
Build a Quality Team
A quality team consists of people with various backgrounds who will make informed decisions regarding the products sold by manufacturers. This includes individuals from sales, customer service, marketing, and product management. Such a diverse team will provide manufacturers with necessary information regarding their reseller’s customers and trends in the industry that manufacturers should consider when creating new products.
Since manufacturers cannot sell their goods directly to end-users, they can increase sales by improving existing reseller relationships. By working closely with resellers, manufacturers can positively impact their customers and build lasting business partnerships. Manufacturers may also increase sales by increasing the efficiency of their distribution channels to ensure that they can meet customer demands.
Inform Resellers about New Product Developments
Manufacturers should keep resellers informed about new product developments. By keeping resellers informed, manufacturers can ensure that their customers are satisfied with their products. They also ensure that these resellers can access relevant information and training materials on new or existing products.
This ensures manufacturers continue to receive sales from resellers even if a customer has switched over to another manufacturer. As a result, manufacturers can also maintain their reputation and avoid potential negative feedback from resellers and customers.
Taking Customer Feedback and Suggestions Seriously
Manufacturers need to take into account any feedback that resellers receive from customers regarding their products. By doing so, manufacturers can make sure they are constantly improving and making changes where necessary. This process ensures customer satisfaction, which will keep the product line profitable for both manufacturers and resellers alike.
Customers are a reliable source of good feedback and suggestions because manufacturers may not always be aware of what is and isn’t working with their product line. Resellers are also a good source for manufacturers. They often regularly contact customers, meaning manufacturers can benefit from resellers’ knowledge regarding which products work best and which do not.
Ensure That the Right People Are Involved
Manufacturers also need to make sure that the right people are involved in conversations about product line profitability. Manufacturers, not resellers, should lead these conversations. However, manufacturers need to include their team members who directly know specific products or product lines.
The best way manufacturers can ensure that these productive conversations occur between themselves and their resellers is by setting up a regular schedule for meetings, which manufacturers should facilitate.
Manufacturers and resellers need to hone and enhance their relationships for the benefit of their customers. After all, manufacturers create products for resellers to sell. Both will only benefit from their relationship if manufacturers can provide resellers with the support they need and vice versa.