When a manufacturing company or a national supplier makes a sale to a city/state/region distributor, it is known as Primary Sales. But when a distributor invoices the same product to a retailer, the transaction is known as Secondary Sales. In this step, the company decides the landing price(RLP) of the retailer which includes the distributor margin. The company’s Sales Representative (SR) or the Distributor Sales Representative(DSR) books the order and raises the invoice at the time of delivery.
- Popularity and brand equity of the company.
- Availability of stock with the distributors.
- Availability of credit and the effectiveness of trade promotions.
- Awareness of product knowledge and business potential to retailers.
- Visibility and availability of product on shelves.
