Why do top brands hate experienced consultants?

Top brands may be apprehensive about experienced consultants assisting their new distributors since they can level the playing field and advocate for the distributors' best interests. Here's why this relationship might cause tension:

1. Balanced Negotiations

Experienced advisors like Takedistributorship.com add knowledge to new distributors, allowing them to negotiate more favorable conditions. This can challenge the customary power imbalance, in which brands frequently impose terms with little opposition.

Brands may be concerned about losing leverage in important areas such as credit terms, margin structures, and exclusivity restrictions.

2. Accountability Pressure

Consultants guarantee that businesses fulfill their agreements, such as timely supply, marketing support, or exclusivity. This additional layer of accountability may feel restrictive to brands that are used to a more one-sided approach.

3. Increased Distributor Expectations

With consultants assisting them, distributors may demand greater standards in training, operational support, or growth initiatives, thus raising the brand's duties and resources.

4. Risk of Exposure

Consultants frequently have deep knowledge of industry procedures and may reveal inefficiencies, inconsistencies, or unfair practices of the brand, thereby harming its reputation.

5. Promotion of Competitive Thinking

If the brand fails to generate the desired value, consultants may push distributors to look into alternatives. This heightens the risk of distributor attrition or competition.

6. Knowledge Empowerment

New distributors, when educated by consultants, become less reliant on brands for guidance and may operate more independently, which could dilute the brand's influence over them.

7. Conflict with Established Policies

Consultants frequently argue for more flexible or distributor-friendly conditions, which may contrast with company's tight standards to standardize operations across areas.

8. Profit Margins Under Threat

By empowering distributors to ask for better margins or rebates, consultants can challenge the profitability of the brand-distributor relationship from the brand's perspective.

While competent advisors assist secure a mutually beneficial relationship between distributors and brands, they can alter established relationships, making businesses uneasy. However, for long-term success, top brands must know that collaborating with consultants may eventually boost their distribution networks by creating trust and transparency.

If you are looking for an expert to find top distributorship opportunities based on your budget, area, and product categories, visit Takedistributorship.com. Since 2017, they have been helping distributors, super stockists, and C&F agents connect with the right profitable brands.