Many brand owners treat a deal as a success once the distributor pays the first invoice. But the invoice measures what the distributor bought from you, not what consumers bought from the distributor. Without that distinction you may discover six months later that stock is sitting in their warehouse and the second order is never coming.
This guide covers the indicators that are enough to judge a distributor, how to collect them, and how to read them without turning into a nuisance.
Sell-in versus sell-out
Sell-in is what the distributor buys from you. Sell-out is what actually leaves stock to reach customers. The first shows up in your books; the second only appears if you ask for it, and it is the one that predicts reorders. Write a minimum periodic report into the agreement. Our article on exclusive versus open distribution explains why exclusivity strengthens your right to ask for this data.
The six indicators worth tracking
| KPI | What it shows | How to calculate |
|---|---|---|
| Sell-out | What actually left stock | Bottles sold per month, by size |
| Weeks of cover | How long current stock lasts | Stock ÷ average weekly sales |
| Reorder rhythm | Whether the distributor comes back | Interval and size of orders |
| Active points of sale | Breadth of distribution | Outlets that sold this month |
| Price compliance | Agreed price or discounting | Sample of shelf and online prices |
| Complaints and returns | Customer experience and storage | Count per batch number |
Sell-out
This is the most important figure. Ask for it by size and channel. It may show that the small size moves while the large one stalls, which directly shapes your next production run.
Weeks of cover
A purely illustrative example: 600 bottles in stock and 50 sold per week means 12 weeks of cover. Too long and the distributor will not reorder soon; too short and you risk a stock-out before your next shipment lands. Because argan oil has a shelf life, dormant stock is also a quality problem. See our piece on FEFO stock rotation.
Reorders, outlets and pricing
Watch the gap between orders rather than size alone: small regular orders beat one large order followed by silence. Count outlets that actually sold, not just those that received product. Check shelf prices yourself; a distributor discounting to clear stock damages the brand and irritates other partners.
Complaints
Require a batch number on every complaint. Without it you cannot trace an issue back to production. See argan oil traceability and batch records.
Collecting data without friction
- Put a monthly report in the contract, due within ten days of month end.
- Use one six-column template rather than dozens of questions.
- Give something back: seasonal demand forecasts and batch arrival dates.
- Cross-check quarterly against shelf prices and actual orders.
Reading the signals
| What you see | Likely meaning | Suggested action |
|---|---|---|
| Long cover, slow sales | Weak marketing or wrong pricing | Review pricing and promotion before another shipment |
| Short cover, fast sales | Strong demand | Book the next order early |
| Complaints from one batch | Storage or batch issue | Check the retained sample and warehouse conditions |
| Prices below agreement | Stock clearance | Talk directly about pricing policy |
Rolling it out in a month
- Fix the six KPIs in a one-page template.
- Agree a set date each month.
- Calculate cover per size and feed it into your production plan.
- Hold a short quarterly review of trends, not single numbers.
- Base the next order on the data, not on goodwill alone.
FAQ
What is the minimum data to request?
Monthly sales by size, current stock and the number of active outlets. Anything more can come later.
What if the distributor refuses to share sales figures?
Refusal is information. First simplify the template and offer something in return; if it persists, revisit the terms, especially where exclusivity has been granted.
How often should I review?
Monthly for the numbers, quarterly for decisions.
Does this apply to a small distributor?
Yes, in a lighter form. Three numbers are enough to decide the next order.
Conclusion
The best distributor is not the one who buys the most, but the one who sells the most and reorders steadily. To plan quantities, packaging and shipping dates around their sales rhythm, request a quote from Assil Ouargane, or read about our way of working first.
