Business negotiations: 7 indicators to prepare before meeting with your distributor

Claire Brunaud
3 days ago
5 min read

The meeting is approaching. The volumes have been finalized, the presentation is almost complete, and the objectives have been validated internally. Yet, one question often remains difficult to resolve: what concrete results should be used to support the discussion with the distributor?

In the foodservice industry, sell-in data provides a first level of insight. It indicates the products sold by the manufacturer to its distributors. However, it doesn't always allow for a precise understanding of what is subsequently sold to end customers. Inventory levels and transfers between warehouses can create a discrepancy between recorded deliveries and actual performance in the field.

Sell-out data complements this view. Based on information provided by each distributor, it allows for the analysis of sales volumes, product references sold, warehouses involved, and end-user profiles. This provides a much stronger foundation for preparing commercial negotiations and moving beyond discussions solely focused on pricing.

Here are seven indicators to examine before meeting with your distributor.

1. The evolution of sales volumes

The overall volume sets the tone, but it must always be placed in its context.

Simply presenting the year-to-date figures is not enough. To understand sales trends, it must be compared to an equivalent period: the same month, the same quarter, or the same year-to-date totals. This comparative perspective allows us to distinguish sustained growth from a one-off event.

An increase in volume can be linked to the arrival of new customers, improved product distribution, or a promotional campaign. A decrease, on the other hand, can mask very different situations: a decline concentrated in a few warehouses, the loss of end customers, or a slowdown in sales of a key product.

Before the meeting, the challenge is therefore to be able to explain the observed change, and not just to note it.

2. The performance of each reference

A product range can grow even when several products are struggling. Conversely, an overall decline can be primarily due to the drop in sales of a single high-volume item.

Product-specific analysis helps identify which products are driving performance, which are gaining ground, and which are experiencing slowdowns in sales. It also provides arguments to defend a product range or to highlight the risk of delisting.

It is particularly useful to compare, for each reference, the volumes of the period with those of the previous year, the number of depots concerned and the number of end customers served.

This analysis avoids reducing an entire product range to an average. It also allows for the preparation of more precise recommendations: developing a product reference in certain warehouses, reviewing the activation of a product, or focusing efforts on the items with the greatest potential.

3. The number of active deposits

A product reference can have a satisfactory volume while remaining concentrated in a limited number of warehouses. It can also theoretically be referenced throughout the network without generating regular outbound shipments everywhere.

The number of active deposits allows us to measure the actual market coverage of a product. By comparing it to the agreements reached or the planned scope, teams can identify discrepancies between the negotiated listing and its operational implementation.

This indicator quickly raises useful questions: Have some warehouses never sold the item? Have others stopped marketing it? Is the potential limited to just a few warehouses?

This analysis must, however, take into account retrocessions, which are common in the foodservice industry. A warehouse may supply another warehouse, making sell-in figures alone insufficient for accurately attributing performance.

4. Performance per deposit

Not all warehouses serve the same markets, customers, or exhibit the same dynamics.

Comparing performance by deposit helps identify those that are progressing, those that are slowing down, and those that appear underutilized. This makes it possible to focus trading efforts on situations that truly require action.

A warehouse experiencing a decline isn't automatically a poor performer. Its customer base may have changed, certain items may be missing from its assortment, or the decrease may be concentrated in a specific product category. Conversely, a growing warehouse may reveal an interesting business practice that could be replicated elsewhere.

For a regional manager, this information helps them better prepare for field meetings. For a key account manager, it provides a more detailed view of contract execution within the network.

5. The number of end users

Two products can generate the same volume without having the same performance profile.

The first can be purchased by a large number of establishments in small quantities. The second may depend on a few major clients. In both cases, the volume is the same, but the level of distribution and the commercial risk are not.

Monitoring the number of end users reveals whether growth is driven by expanding the customer base or increasing purchases from existing customers. A decline in this metric can also be a signal to investigate, even when volumes remain temporarily stable.

This figure should not be interpreted in isolation. Its significance becomes apparent when considered in conjunction with volumes, references, and deposits.

6. The typology of end users

Knowing how many customers buy a product is useful. Understanding who they are is even more so.

Depending on the level of detail provided by the distributor, sell-out data can be used to analyze sales by type, subtype, or sub-subtype of end user. This segmentation helps to understand the markets in which a product truly finds its niche.

A product range might, for example, be well-established with one customer segment but have a limited presence with another. This information opens up concrete avenues for action: adapting the product assortment, targeting a specific activation, or providing more targeted support to the distributor's sales teams.

It also provides valuable information for Category Managers. Rather than solely focusing on total volumes, they can observe the performance of individual products based on the needs of the different markets served.

7. Average monthly sales

Cumulative volumes provide an overview, but they can be influenced by a large order, a promotion, or a seasonal effect.

Average monthly sales allow us to observe the rate at which a product is being sold. Compared to the previous year, it helps to identify acceleration, gradual decline, or inconsistent performance.

This indicator is particularly useful for setting realistic objectives. It allows us to distinguish between a product with consistent sales, which generates regular sales, and a product whose performance depends on a few peaks.

Here again, the analysis is best done by depot and by product. A national average can mask significant local differences.

From indicators to decisions: preparing for your business negotiations

A good meeting is not about the number of charts presented. It's about the ability to draw out a few clear conclusions and turn them into actionable insights.

The preparation can be organized around three questions:

What works?

Dynamic references, growing deposits and the most receptive customer segments.

Where do the risks lie?

Declining products, a decrease in the number of buyers, inactive deposits, or overly concentrated performance.

What can we improve together?

The development of distribution, the adaptation of assortments, the support of certain warehouses or the targeting of an activation.

The distributor and the supplier then have a common basis for discussion. The business negotiation remains commercial, of course, but it can focus more on product performance and how to improve it.

Facilitating access to a shared reading experience

In practice, sell-out information is often transmitted in different files, with varying reference data, formats, and levels of accuracy depending on the distributor. Therefore, its use requires upstream centralization and harmonization efforts.

A management solution like KaryonFood allows you to consolidate this data in a single environment and analyze it by reference, warehouse, or end-user type. Its main advantage during sales negotiations lies in the ability to prepare discussions using consistent, up-to-date indicators shared by all teams.

Because a well-prepared negotiation is not about accumulating figures. It's about selecting those that allow you to understand the situation, defend your decisions, and build the next step with your distributor.