Pressure from the trader

Intention and Process

When a trader has been connected, it  is the basic idea that orders are going to increase than the previous time.   basically indicates that this particular area has been covered and a company will be able to deliver with ease. As a company in the initial stage, it will try to cover a large number of areas, rather than to focus and develop a customer base on a single region. Country-wide projects are a big range of  vision-oriented projects. It is only obvious for a company with an adequate budget  to cover as many regions as they can.  if the company in the  initial stage decides to focus on a single region and collect data and see the profits, then decides to move on to another area, then it will only consume a lot of time and the company will be known as a bootstrapped company.

It has greatly proven to be beneficial for a company to cover as many regions as  possible.  The data generated will be huge. Maybe not in depth, but more than enough to get an idea of whether they  can increase the  focus on the region or not. The second benefit is, the company will be widely known in many areas. In their respective domain, companies will start to get the recognition that  they need in the initial stage.

Trader View

To look at  a similar scenario from a trader’s perspective, he is also not wrong to expect  the rise in orders and an increase in sales, as the main intent of connecting is to give traders orders and secure the area and trust of the trader.  Then it leaves no option for the trader than to ask for his own share of commitment. This is where a company can make a bad mistake.

The trader, in order to fulfill the commitment and keep his expectations, is likely to buy more and in bulk. When the company is not delivering any orders, the products are just sitting in the warehouse. Because, the products  have a shelf life or they are perishable,  then they have two options, One is to push the products to the current customers and the other is to dump them. Sometimes, pushing the products can also result in the loss of a customer. This puts a trader in a difficult situation. Whether to continue with the current customer base or leave the agreement with the company.

Tough Love

Now as both the perspectives are clear. The reason why traders put a lot of pressure on the company for orders. Like both of the groups have made a reasonable investment and commitment. No one connects without the intention of growth.  Pressure from the traders is a lot to handle, but it works similar to the concept of “Tough love”.