Choosing between pre-sales or prompt delivery is a question that those who plan commercial strategies and input procurement tend to have. That’s because business results and customer satisfaction depend on it.
Both models carry positive and negative points, so choosing what can generate more benefits and less obstacles for your business is essential. In particular, if you want to increase your pet shop product sales, as well as reduce your costs.
To help you make the right decision about these two ways of working, we have separated information about the pros and cons of both, as well as tips for choosing between them. Check out!
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What are the pros and cons of the model for prompt delivery?
In this sales model, the company maintains a stock of products. The customer goes to her and chooses what she wants. Then, the employee delivers the goods and receives the payment in cash or makes an installment in the act. In this way, the customer already left with the product or received it right after the purchase.
Now that you know this, see the strengths and weaknesses of this model:
Pros of prompt delivery
- As mentioned, those who buy already come with the product, that is, they do not need to wait;
- whoever sells does not frustrate the customer looking for a product, as he has it in stock. Sometimes, when we need something and go to a store, but it doesn’t have the goods, we tend to go to another company. Thus, the first store ends up losing the sales opportunity;
- the customer is able to analyze the product at hand, which is important for their shopping experience.
Cons of prompt delivery
- The investment in products is greater, as the distributor will need to purchase a reasonable amount of goods to keep in stock;
- it requires greater planning of the logistics chain, as you will need to buy products in advance to replenish the stock to the desired level and avoid shortages. In addition, you will need to manage it well to avoid losses, losses, expiration dates, etc.
- inventory costs tend to increase the value of the product;
- the processing of the sale, including the issuance of the invoice and other documents, must be agile so that the customer leaves the establishment with the product and these tax procedures are resolved.
What are the pros and cons of the pre-sale model?
In the pre-sale model, salespeople or sales representatives contact potential customers through visits, phone calls, e-mails, etc. to close deals. When this is confirmed, salespeople issue sales orders and begin the process of shipping products.
It is worth mentioning that consumers themselves can contact the sellers or make purchases in the distributor’s e-commerce. After that, they will need to wait for their orders to be received.
Now, see the pros and cons of the pre-order model!
Pros of pre-sale
- Shipping of the product to the pet shop can be done by the distributor as soon as it receives this merchandise from the industry, preventing it from being stored. In certain cases, the industry itself sends the product to the pet shop or final consumer at the distributor’s request;
- there is no need to keep stock in order to save the money that would be spent on maintaining the stored goods;
- sales processing, which includes issuing invoices and other bureaucratic aspects, can be done more slowly. This avoids problems in posting tax document data;
- there are less costs with product storage, as there is no stock. Consequently, it is possible to practice better prices.
- Whoever purchases the goods will have to wait until it is delivered. In some cases, it is still necessary that it be produced and, only afterwards, prepared and transported to the buyer;
- chances of losing sales opportunities to customers who need the product on time or on tight deadlines;
- as vehicles come and go from customers, it is necessary to acquire a good transport fleet and invest in the continuous maintenance of vehicles.
Pre-order or prompt delivery: how to choose the ideal model?
Choosing between pre-sales and prompt delivery will depend on your distributor’s planning and operating mode. This is both to sell products to your customers and to buy them from a supplier.
In this case, it is necessary to evaluate logistical factors, production costs and the quantity of products offered by your company. Some questions can be raised, such as:
- Does your business have a good space for storing goods? If not, the pre-sale model may be better;
- Do customers prefer to go to your distributor to leave with their products? In this case, the prompt delivery model is indicated;
- Does your distributor have adequate vehicles to transport products with great frequency and with good speed? If you choose the pre-sale model, it is important that you have this type of fleet or a good amount of money to invest in the purchase of one like this.
You do not need to choose exclusively one of the two sales models for your pet products distributor. After all, it is possible to work with a mixed model in order to take advantage of the best of both types of sales and mitigate their weaknesses.
This is also true for your purchases. This way, you will be able to purchase goods quickly (prompt delivery) or planned for a future period (pre-sale). In particular, when there will be high demand, in fact, you may be able to get discounts because of the advance in purchases.
In this case, it is important that your distributor looks for a supplier that can meet both ways of working and that is committed to delivery times.
It is also indicated that you have a large mix of products for you to diversify your inventory well and be able to serve many customers. Incidentally, an example of this type of supplier in the pet segment is Matsuda Pet.
Finally, know that when choosing between pre-sales or prompt delivery, choose the model that best suits your distributor’s structure and your goals. In addition, you will be able to implement one type while planning to adopt the other in the future.
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