Managing channel partner conflict

Managing channel partner conflicts

As with any commercial relationship, conflicts can occasionally arise. Here we look at potential distribution partner conflicts and how to deal with them.

Consider potential distribution partner conflicts, and where appropriate, address these in the terms and conditions. These might include (but are not limited to):

DISTRIBUTION PARTNER BIDDING ON YOUR KEYWORDS/ BRAND NAME

Brand keyword bidding is a tactic a distributor employs when selling online. This may conflict with your direct marketing efforts, and you should consider the pros and cons. Should this be an issue, discuss in initial conversations and during setup to avoid challenges. A solution that can work for both parties is to restrict the distributor to always bid on second place or greater, allowing your brand to take first place in all bidding. Consider restricting the distributor by not agreeing to them bidding on your brand.

DISTRIBUTION PARTNER SELLING YOUR PRODUCT FOR LESS THAN RETAIL PRICE

Sometimes, especially as it pertains to online travel agencies, a distributor employs sales techniques that include selling products below the listed retail price. They eat into their own commission to achieve this. This can be beneficial during high sales periods such as holidays. But it may however, cause conflict with distribution partners (it could violate your terms with other partners) and your own direct customers. Discuss this during initial conversations and include any agreements in your terms and conditions.