Market Core · Sales Channels · Module

Channel conflict

Where routes compete for the same customer, and the rule that settles it — written before the collision rather than during it.

The idea

How it works

Two routes serving one segment will collide. The customer discovers they can play both, price erodes, and the partner concludes that the relationship is not what they were told.

The standard remedy is segmentation: routes are assigned distinct customers by size, geography or product. Deal registration and price floors are the mechanisms; the segmentation is the actual answer.

Working with it

In practice

  1. 01

    Assign segments to routes explicitly

    By size, geography or product. Ambiguity is what creates the conflict.

  2. 02

    Register deals

    A first-claim mechanism prevents most disputes and costs a form.

  3. 03

    Hold a price floor across routes

    A customer who finds two prices for the same thing has learned to negotiate against you permanently.

  4. 04

    Name who rules on the exceptions

    They will occur. A named arbiter with a fast turnaround prevents each one becoming a relationship problem.

One level in

The components of channel conflict

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The boundaries

    Which route owns which customers, by an explicit rule.

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  2. The mechanism

    Deal registration, price floors and whatever else enforces the boundary.

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  3. The arbiter

    Who rules on cases the boundary does not cover, and how quickly.

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A customer who finds two prices for the same thing has learned to negotiate against you permanently.