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Advantages and disadvantages of stationery agency

Writer:lps-sationerySource:www.lepusheng.com Date:2013-07-11

So-called agency model, it is a large agent holds the provinces of a brand in a province or several.We have learned,at present 80% of China stationery are be taken to the such agent developing.In the beginning of brand construction,this model can quickly open the market and save a lot of time and cost.

However, the disadvantages of this model is emerging: big agent sell on a specified area,and it caused the confusion of product price in different place.Then to caused the  brand sutainable development into trouble.Ans what about the advantage and disadvantage of stationery agency.

1.The advantage of agency

A,Separate with manufacturing and market.

With the change of channel,more and more traditional agencies began to transition.Some outstanding agents has became a regional brand operators.Enterprises are responsible to build good brand.And provide the sales policy to the agent.Than the agent to do the business including regional brand operation, product distribution, brand promotion, after-sale services, operating market together.

B,Reduce the enterprise risk and cost

Select agents to operat the market together can reduce the repeat setting and channel construction fee.Stationery factory and agent is a community.The slotting fees, terminal building cost, promotion fees,wages and other marketing costs were rose as well as well the more and more intense compeition and the change of the channels.Select agents to do the business together can undertake cost-sharing  then to reduce the marketing development costs.

2.Disadvantage of agency

A,Difficult to synergy

The contradictions always exist between manufacturer and agent.Factories hope angents to puchase more products and strengthen the construction of channels and less the factory cost,And the agents hope the price in the best quality,low price,high profits,big supply and low risk.Due to the weak strength of agents and low loyal to the manufacturer or the different thought will lead to them separation .

B.Not enough profits space

With the further intense competition in the stationery market,it lead to increase market development costs and reduce the profit space.The office supplier and the agent is an independent economic entities.They all in the pursuit of  profit maximization,so than could not take the enough profit distribution.

(This article is provide by Lepusheng,please indicate the source and add link www.lepusheng.com if reprint)

TypeInfo: Stationery Information

Keywords for the information:China stationery  stationery factory  stationery market  office supplier