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How do Primary, Secondary, and Tertiary Sales Affect Your Business?

Primary, Secondary, and tertiary sales

How do Primary, Secondary, and Tertiary Sales Affect Your Business?

Sales is a foremost important business activity that entirely revolves around exchanging goods or services from a seller to a buyer for an agreed-upon price. In simpler terms, sales is the process of providing services or products to customers to generate revenue for the business. The sales process itself can be broken down into several hierarchies like Primary, Secondary, and tertiary sales.

For any retail brand, it is essential to know the key importance of sales that manufacturing and mass producing a good product, should be delivered to the customers on a large scale. That outcome will create demand and generate more leads.

Every business agreement involves a buyer and a seller, resulting in a mutually beneficial outcome. In reality, sales comprise many levels before a product reaches a consumer, and that’s just the gist of it. Manufacturers, distributors, wholesalers (in some cases), retailers, and of course consumers all have a role to play in the success of a brand. They all contribute to the bottom line of a brand in their way.

What are the types of sales in business?

Sales are further divided into three categories: primary sales, secondary sales, and tertiary sales. Even after the product is manufactured, the journey isn’t over yet. it is very crucial at this stage to bridge the gap between the product and the customer’s needs.

It is a very crucial phase of a business and important to understand what are the different kinds of sales, how they work, and how they are responsible for the success of a brand. All three sales types Primary, Secondary, and Tertiary Sales are necessary to fill the gap between company and customer’s needs.

What is Primary Sales?

Primary sales is the first step that comes after manufacturing a product, it is an agreement between a company/brand and the distributor. In the whole transaction, the distributor is billed for the product purchased from a brand. An invoice is created as per the brand’s pricing and that generates the net revenue for the brand. But, deals don’t happen overnight. There are a lot of key factors that influence primary sales including brand value, popularity, sales performance, and market share.

For example, a product of a renowned beverage Company is shipped to a country or region. Based on the data, they sell their products to the distributors according to the retailer’s demands and customer needs. As the company is collaborating with the distributors, the revenue will be generated based on the predetermined price(deal) made with the distributors and that will be counted as the gross profit of that beverage company.

What is Secondary Sales?

Secondary sales is the step that comes after primary sales when the distributor purchases the product from a company and sells it to the retailers. Now, the distributor will act as a dealer in the market, ready to sell the products. In the whole process, the distributor sets the price limit and gets its margin and profit on the product.

The selling of a product depends on the demand for the product and the popularity of the brand. Secondary sales are more important for a manufacturer than primary sales because if secondary sales are not happening then it will affect the primary sales as well.

For example, huge FMCG brands are selling their products. The market gap is huge and customers are more likely to buy those products because of trust and value as compared to other small companies, who are making their way up in the market. That is where the data on competitor analysis is needed. SFA gives you the analysis of competitor’s performance and provides a better solution to sell your product in the market.

What is Tertiary Sales?

Tertiary sales is the last stage of the whole sales process and it involves the transaction between retailers and customers. After buying the product from a distributor, the retailer is all set to sell the product in the market. However, certain conditions affect the sales:

  • Tertiary sales are unpredictable and rely on a lot of factors in the market like popularity, necessity, demand, brand value, advertising, marketing campaigns, discounts, and many more.
  • Good sales require the authenticity and ingenuity of the product for the customers.
  • Tertiary sales are sold at either MRP(Maximum Retail Price) or MOP (Market Operating Price).

How can you increase Primary, Secondary, and Tertiary sales?

Sales are the most important part of the whole business, good sales performance decides the profit and future of a company. There are several reasons why you should do sales optimization to grow your business and get good sales. Brands need to have a strategy ready to beat the adherence and market needs. A good market share leads to better customer satisfaction and product visibility. This section is solely discussed to optimize Primary, Secondary, and tertiary sales.

Primary sales optimization with distributors

  • Improvement in primary sales needs a strong relationship between the company and the distributor, which leads to trust and integrity in the market.
  • Regular checks on the inventory ensure that the stocks never run out. This guarantees the distributor that the direct source of income from the brand remains unaffected.
  • Pepupsales SFA gives the best collaborative UI to outperform competitors through product availability and efficient distribution.

Secondary sales optimization with retailers

  • It involves a strong connection between distributors and retailers, creating a steady distribution of products. Stocked inventory means the retailers are already prepared to meet consumer demands.
  • Well-optimized secondary sales directly impact the growing business, leading to fewer stock complaints, more trust, and integrity with the brand incorporation of loyalty points and special schemes.
  • Secondary sales can be optimized by providing access to the sales data of retailers, leading to better analysis and driving countermeasures for better performance.

Tertiary sales optimization with customers

  • Optimization of tertiary sales entirely focuses on the sales with end customers. This includes a healthy relationship between a retailer and a consumer.
  • The tertiary sales process can be optimized with the data collected from the sales reps through SFA to ensure that the product meets the needs of a customer.
  • Analysis of tertiary sales with SFA can help get feedback from potential customers. Positive customer experience leads to more demand for the product in the market.


It should be kept in mind, that every sales process demands better performance, integrity, and collaborative sales efforts. Primary, Secondary, and tertiary sales are interlinked and dependent on each other to meet the end customer requirements. Better supply creates demand in the market and also leads to many benefits like product visibility, brand recognition, loyalty, and many more.

Pepupsales SFA offers a platform that allows the brands to stay on top of the market with better supply chain and sales performance. With the modules included in pepupsales SFA gives a better UI environment that ensures everyone is in the loop about what’s happening in the market. It comprises customizable UI, easy communication, smart KPIs and so much more.  We don’t recommend trusting blindly. Try the free demo provided and clear all the doubts related to sales and operations.

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