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Retailers objection to sales

by Keshava Ram Bonanthaya 17 Nov 2020
Retailers' objections to sales

Recently, we decided to become more active on social media and updated our Facebook cover photos. A subscriber from Mangaluru commented, “Your product is not available anywhere here.” The fact is, Cocoguru coconut oil is available at many outlets across Mangaluru.

However, he had a valid point — it was not available in the few shops where he happened to look. I responded by saying that we are working hard to expand our presence and place our products in more stores. But why is it so hard to place the products? Because of objections from retailers.

Retailers need shelf space, inventory budget, and the intention to promote a product. They prefer to stock only fast-moving brands. Here are some common objections our sales team faces from retailers when trying to introduce our product:

  • No response – The retailer shows no interest and simply ignores the salesman.
  • No consumer demand – Retailers are only willing to stock brands that customers are actively asking for.
  • High price – The retailer feels the product is priced high and worries about earning a decent margin while staying competitive.
  • Low margin or MRP – Retailers want a higher printed MRP so they can offer discounts and still maintain healthy margins.
  • Credit terms – Many are accustomed to buying on credit from local distributors and resist cash-and-carry terms.
  • Yellow oil / Not pure – Retailers often associate clear white coconut oil, especially extracted via Ghani or Chekku, as pure. Anything different, like our roasted coconut oil, is perceived as impure.
  • New brand – Retailers hesitate to stock new brands due to concerns over inconsistent supply and the effort required to promote them.
  • Dictating terms – Some retailers already source the product from others and use new suppliers to demand better discounts or credit terms.

These are just a few common objections, often expressed in various forms. It’s up to the salesman to skillfully address them, build trust, and earn the retailer’s confidence and ultimately, a sale.

In the upcoming posts, we’ll explore how to respond to each of these objections effectively.

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