Contents
- What is van selling?
- How does van selling work?
- Who needs van selling and why?
- Advantages of van selling
- Disadvantages of van selling
What is van selling?
Van selling (from English "van selling") is a unique model of wholesale trade where products are sold directly from a specially equipped vehicle. This allows suppliers to promptly offer their products to retail outlets without the need for a prior order. This approach is carried out using vehicles similar to minibuses, vans, or small trucks that are equipped with necessary trading devices such as computers and cash registers.
It is important to note that van selling differs from selling from mobile shops, where products are offered to end consumers. Van selling is focused on working with retail stores, making it an ideal tool for wholesalers and distributors.
How does van selling work?
The process of van selling consists of several key stages:
- Territory division: The supplier divides their responsibility area into sections where a separate vehicle operates with a sales representative.
- Loading goods: In the morning, the vehicle is loaded with goods based on its capacity.
- Visiting retail outlets: Supplier employees visit various retail stores, kiosks, and stalls, forming optimal routes based on their experience.
- Closing the deal: On-site, the terms of the deal are discussed, documentation is prepared, payment is accepted, and goods are shipped.
- Return to the warehouse: At the end of the workday, the vehicle returns to the warehouse for inventory and preparation for the next day.
Over time, the supplier adapts the frequency of visits to regular customers, helping to avoid both excess and shortage of goods.
Who needs van selling and why?
Van selling is actively used by wholesale and distribution companies involved in supplying goods to retail outlets. This method is particularly effective in the fast-moving consumer goods (FMCG) sector, including food products, household chemicals, and cosmetics.
The advantages of van selling include:
- Speed of trade: reducing the time from order to receipt of goods.
- Simplification of the sales process: documents are processed on-site, saving time.
- Increased service level: suppliers can quickly respond to customer requests.
Advantages of van selling
Van selling offers numerous advantages for both suppliers and retail outlets. The main ones include:
- Sales automation: Specialized equipment and software are used in vehicles, simplifying the deal-making process.
- Increased sales: Quick customer service allows suppliers to reach more customers.
- Building trust: Convenient and prompt procedures enhance customer loyalty.
Disadvantages of van selling
Despite its advantages, van selling also has a number of drawbacks:
- High costs: Maintaining transport and equipment requires significant expenses.
- Limited capacity: The volume of goods is restricted by the size of the vehicle, which can affect the assortment.
- Staffing challenges: Highly qualified specialists are needed, making recruitment difficult.
- Safety issues: Sales representatives risk facing criminal attacks.
- Management concerns: Clear organization of work is necessary to avoid losses.
Thus, van selling is an effective model of wholesale trade that, despite its drawbacks, can significantly enhance the speed and quality of service in the FMCG sector.