Tapped In Sales and Strategy for Beer Distributors

60: Supplier Incentives: How to Waste Money & Confuse Reps


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Welcome back to Tapped In Sales! In this episode, Bud, Data Mike, and Moneyball Ross tackle one of the most frustrating (and expensive) realities in beverage distribution: bad supplier incentives.

Whether you're a supplier trying to move volume or a distributor juggling ten competing programs at once, this one’s for you.


We break down:

🎯 Why complex incentives kill execution

🚫 The hidden danger of house goals and why they backfire

🤷 What actually happens when reps don’t know how (or if) they’ll get paid

❌ Why “pass-pass” incentives are a waste of everyone’s time

🤝 How to negotiate back with suppliers and protect your business

💰 A reminder that just because money is on the table… doesn’t mean you should pick it up


Plus, a quick breakdown of RNDC’s California exit and what it means for franchise protection, brand value, and wine & spirits chaos heading into Q4.

If you've ever asked yourself, "Why is this so complicated?"—this episode was made for you.


Chapters

00:00 Incentives and Supplier Strategies

01:13 Complexity in Supplier Incentives

04:13 Simplicity vs. Complexity in Incentives

07:17 Understanding Supplier Incentives

10:30 The Impact of Complexity on Sales Reps

13:17 Distributor Perspectives on Incentives

16:23 Consequences of Poor Incentive Structures

18:58 The Risks of House Goals as Qualifiers

21:32 The Importance of Return on Investment

24:09 Analyzing Achievability of Goals

25:18 Identifying Underperformance Causes

27:15 Asking the Right Questions

28:55 The Role of Suppliers in Distributor Success

34:02 Navigating Supplier-Distributor Relationships

44:35 Impact of RNDC Leaving California

50:41 Franchise Protection and Market Dynamics


🎧 Listen now and follow the show: We're on Spotify, Apple Podcasts, YouTube, and everywhere else. Got questions or reactions? Email us at [email protected]

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About Tapped In Sales:  

Tapped In Sales is a podcast dedicated to beer distributors and beverage industry professionals who are looking to elevate their sales strategies and drive profitability. Hosted by industry experts Bud Dunn and Mike Hall, we dive deep into real-world stories, actionable insights, and the latest trends to help sales teams and managers unlock their full potential. Each episode blends data, strategy, and motivation, making complex topics easy to understand and implement.

This podcast is powered by VXP Tech – the leading Sales Strategy Management system designed for beer distributors. VXP simplifies the complexities of goal setting, variable compensation, and sales team performance, helping you master your market and grow profits, case by case.

Stay tuned for expert advice, fresh perspectives, and tools to sharpen your sales approach!

If you enjoyed the episode, don’t forget to subscribe, leave a review, and share it with a friend!

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