Many Australian SMEs find themselves navigating a tricky situation: selling directly to customers while also relying on a network of resellers. It’s a powerful combination, but without careful management, it can quickly lead to channel conflict – where your resellers feel undermined, and your direct sales efforts damage relationships. We’ve seen this play out time and again, and the key is proactive planning, not reactive firefighting.
The goal isn’t to eliminate all potential friction, but to create a system where both direct and reseller sales contribute to overall growth. Here’s how we approach it with our clients:
- Segment your market: Don’t sell the same things in the same way through all channels. Identify customer segments best served by direct sales (perhaps those needing complex solutions or high-touch service) and those better suited to resellers (smaller businesses, geographically dispersed customers).
- Price differentiation is crucial: Avoid undercutting your resellers. Consider offering different product bundles or service levels through direct channels. A slight price premium for direct purchases, reflecting the added convenience, can be effective.
- Lead distribution and registration: Implement a clear system for handling leads. If a lead comes through your website but is located near a reseller, automatically route it to them. Registering all leads, regardless of source, provides valuable visibility and avoids duplication of effort.
- Reseller enablement and support: Invest in your reseller network. Provide them with marketing materials, sales training, and dedicated support. A strong, well-equipped reseller network will be far more effective than trying to do everything yourself.
Beyond these core strategies, transparent communication is paramount. Regularly update your resellers on your direct sales activities and solicit their feedback. Consider a formal channel partner program with clearly defined roles, responsibilities, and incentives. Looking ahead, as customer expectations continue to evolve, a flexible channel strategy will be essential for sustained success.
Ultimately, preventing channel conflict isn’t about choosing between direct and reseller sales; it’s about orchestrating them to work in harmony. The next step is to audit your current sales processes and identify potential areas of friction. A simple channel conflict assessment will highlight where you need to focus your efforts to build a thriving, collaborative ecosystem.
