The goal of any manufacturing company is to sell at a profit! But this can only be done by expanding your market.
It is for this purpose that contracts are concluded with trading enterprises or entrepreneurs who undertake to sell the products of manufacturing companies outside the location of the manufacturer itself.
And such sellers are called dealers.
Dealer: who is this?
In the understanding of many, a dealer is a simple intermediary who acts on the basis of...
But this is not entirely true: a dealer is a company that, at its own expense and on its own behalf, makes wholesale purchases from the manufacturer of its products and sells them.
A dealer can be either an entrepreneur or a legal entity. In this case, all risks associated with sales are borne by the dealer. However, it has advantages, one of which is complete lack of competitors in a specific city or even region for a specific product. This advantage is given to the dealer by the official representation of the manufacturer.
At the same time, she herself dealer company can:
- engage in both wholesale and retail sales;
- present products from both domestic and foreign manufacturers;
- engage in direct sales and accept applications for the supply of products, having only a showroom.
Despite the fact that the dealer company actually purchases products from the manufacturer, it cannot simply be called a “reseller”, since it works closely with the manufacturer itself, purchases goods directly and has a document from the manufacturer notifying consumers about the supply of the products offered to them from the factory. manufacturer.
By the way, what distinguishes a dealer from companies working on .
- he is not obliged to follow the manufacturer’s recommendations for advertising and promotion;
- can replenish its assortment with products from another manufacturer;
- and does not pay any commission to the manufacturer for the use of its name.
That is why many consider this format of work as an excellent way to start their own business.
A way to start your business from scratch
Yes, becoming a dealer is real profitable.
However, with this way of working there is its own nuances things to consider:
- the dealer is responsible for his actions, decisions made and losses incurred;
- to become a dealer, you will need not only to conclude an agreement with the manufacturer, but also state registration either as a legal entity (more often this is) or an entrepreneur (). Otherwise, no one will enter into an agreement, even if the proposed market is very promising. The fact is that cooperation with a simple individual is fraught with certain tax consequences and obligations that no one wants to shoulder;
- In addition, it is very important to know the product that the dealer will be dealing with. For example, if you are going to sell tools, you need to have an understanding of all their capabilities and technical characteristics in order to be successful.
But there is more one group of nuances that need to be clarified at the stage of concluding an agreement with the manufacturer:
- payment procedure – prepayment, installments, payment after sale and other forms;
- availability of a deposit, i.e. advance payment;
- delivery - who is responsible for the delivery of products to the place of sale and the safety of the cargo for this period;
- return of products in case of damage or defects;
- presence or absence of a dealer in the same territory;
- the presence of restrictions on the trading platform, price, etc.
These are important points that need to be taken into account when starting your own business, which indeed has not only advantages, but also disadvantages.
For an example of a dealer offer from the manufacturer of heating systems Daewoo Enertec, see the following video:
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Advantages and disadvantages of doing business this way
First of all, the dealer, as a rule, has no competitors for this type of product in a specific territory. And such exclusivity expands its sales opportunities and provides access to new products and the entire range of products of this manufacturer before others. In addition, the higher the dealer's turnover, the higher his discount from the manufacturer from the price. This difference provides a solid income for the dealer company.
Despite the fact that the dealer works on his own behalf and at his own expense, the main trump card of his sales is direct deliveries from the manufacturer.
And this for the consumer it means:
- a real factory-made product, not a homemade one;
- the price is recommended by the manufacturer itself (if provided for in the agreement with the dealer), which means it is low;
- availability of warranty and post-warranty service;
- repair using factory components;
- the ability to return the product without problems.
But such closeness to the manufacturer is fraught with its own shortcomings:
- the manufacturer can dictate the price tag, sales procedure, conditions of use;
- the dealer is obliged to buy back a certain volume of products, even if he does not sell that much;
- If the contract provides, the dealer may be limited in adding products from another manufacturer to the assortment.
However, as a rule, all these inconveniences are covered by large discounts, which the manufacturer is obliged to give when increasing the turnover of its products.
How do you become an official dealer?
Of course, to become a dealer, required not only state registration:
- knowledge and experience in sales;
- the ability to analyze demand and the market and know their condition in relation to one’s territory;
- developed by dealer;
- stable financial condition;
- professional accounting and absence. Very often, manufacturers require certified copies of declarations (, etc.);
- availability of those who have the necessary qualifications to work with the manufacturer’s product; or its availability from the entrepreneur himself;
- interest in the product and its knowledge.
In addition, you need to draw up a commercial proposal, attaching your business plan to it, and send it to the manufacturer. However, this proposal must be correct not only from a spelling position, but also from a marketing position. Then it will be able to convince the manufacturer of the competence of the future dealer.
Do you want to become a dealer?
Now there is a large selection of dealer offers made by the manufacturers themselves, and, in any areas. For example:
- auto products represented by such manufacturers as "PROMA wheels made of light alloys", "Expedition", "KAMSKY MOTOR PLANT", "Kurgan trailers", "Auto Technology Group", "Togliatti trailers", "Avtonota", "IRON MANUFACTURE URAL", " VMPAUTO", "Rossvik", "Volga Tire Company", "MOTORFIST", and others;
- interior and entrance doors – “Cardinal”, “Vivo-Porte”, “Pharaoh”, “League of Doors”, “Euro-Doors”, “PROFF”, “Wood Products Plant”, “RosDver”, “Art Deco”, “Dera”, “Kontur” ", "DOOR FACTORY", "Cabinet Doors", "Torex", "LineDor", and others;
- blinds - “Stroy-Life”, “RUPAN”, “Decor - CITY Ural”, “New Blinds”, and others;
- furniture, furniture materials and accessories – “Involux”, “Cozy House”, “Ivanovo Furniture Factory”, “Somovo-Furniture”, “Geniuspark”, “BELKUKHNYA”, “Kadici”, “L-furniture”, “NOVA”, “RONIKON”, “Ikhsan” ", "Furniture Factory 8 March", "Furniture Symphony", and others.
And this is only a small part of the current offers!
An example of dealer cooperation from a car oil manufacturer is given in this video:
Do you offer franchise or affiliate program? Perhaps you have a special offer for your customers, special conditions for the delivery of your goods, exclusive services that will easily interest the business audience? Please inform all interested companies about this in our Partnership section. Your proposal for cooperation in any area will be seen by the entire audience of our site, all you have to do is consider the responses of your potential partners and choose the best offers!
Do you want to start your own business, but don’t know how to start your business from scratch? To open your own business, you suggest ideas, everything else can be found using Finatica!
Hundreds, and maybe thousands of companies and businessmen are looking for business partners every day. Finatica is a unique database of business proposals that you create yourself. The search for it is organized in such a way that you can choose not only the search direction (“looking for” - “offering”), but also a specific category of partnership, industry and region of interest to you. For example, you can select categories such as “Looking for a manufacturer”, “Looking for an agent, representative”, Franchising, “Looking for a distributor, dealer”, “I offer myself as a contractor/work performer”, etc.
For those who have not yet decided on the specific direction of growth for their business, we recommend subscribing to the mailing list of new affiliate programs and offers from companies in your area, or frequently viewing the list of advertisements in the “Partnership” section. Perhaps a particularly advantageous offer awaits you! The section can publish proposals from companies, individual entrepreneurs and individuals.
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Payback period: from 5 months
Estimated net profit: from RUR 150,000
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Dealers are people who take goods in bulk for subsequent resale to sellers or stores individually or in small quantities (and not just drug dealers, as many are accustomed to believe). Most newcomers in this business do not want to make special investments: they are afraid of “burning out” if they suddenly don’t buy the product, there is not enough money to start, or other reasons, it doesn’t matter. For product owners, this desire is often not to their advantage, so there are not many options to implement their plans.
How to become a dealer without investment?
Method one - selling to order
Perhaps you have seen in the price lists of online stores the note “made to order” next to the indicated cost of the product. It means that you must first deposit the full cost of the goods into the seller’s account, and only then, after some time, they will transfer it to you for use. If you look at the situation from a business point of view, it looks like this:
- The dealer enters into an agreement with suppliers for the delivery of goods at the dealer price (in some cases it is possible to work without an agreement).
- The product is offered for sale at the dealer's outlet. More precisely, not the product itself, but the lines in the price list and promotional materials.
- Buyers are charged an advance payment, for which the dealer purchases goods from suppliers.
- The purchased product is transferred to the buyer.
Please note that if you work according to the “made to order” scheme, it is better to cover the market segment of goods in the middle price group (5-20 thousand rubles). It will be easier for customers to buy cheap goods in a nearby supermarket, albeit at a slightly inflated price, but quickly and immediately. If the goods are too expensive, you will have to spend extra money on renting a good office or store. For example, the same car dealers, in order to impress customers, are forced to rent large areas for showrooms.
Method two - goods for sale
Many manufacturers provide for this type of cooperation. The dealer is given a certain time within which he must sell the product. After the established period, you will need to pay for the goods, and the amount will be 1-2% higher than if you paid everything at once, so the risk of “burning out” does not disappear. If you fail to meet the deadline, you will have to compensate suppliers for losses. Only in rare cases can the goods be taken back from you (the terms of return must be specified in the contract).
Method three - free testing
If the manufacturer with whom you are going to cooperate agrees to send free samples of their products so that you can try them “in combat conditions,” then you are very lucky. Most suppliers do not want to work according to this scheme, so the chance to check a product for free is extremely rare.
Method four – become an official representative of the company
By choosing this option, you will receive advertising, information and consulting support, assistance in development, trade organization and, most importantly, a guarantee that the product you are selling will be of interest to the end consumer. In addition, advertising specialists are involved in promoting the product, which saves you from having to do it yourself.
As you can see, it is quite possible to start a career as a dealer without investments, without risking anything (or almost nothing, as in the case of taking goods for sale) and without being obligated to anyone. Of course, you will have to put in a fair amount of effort, which will eventually have to pay off.
Readers' opinions
I read the title of the topic - “How to become a dealer?”, I don’t know about you, but I immediately have associations with drugs.
Qwer, I think that “test in combat conditions” means testing the ability of a product to arouse interest among consumers and its quality, of course, too. If consumers buy the first small batch of goods and speak well of it, then they can safely purchase an even larger batch (this time with their own money) and sell it without any problems. By the way, the dealer, thanks to free samples, can also study the characteristics of the product offered to him for sale.
The idea is good, but there are also a lot of risks. First of all, I think you should study the market and test the quality of the product. In this case, you need to thoroughly study the product you are selling. And only then offer implementation services. In general, it’s a troublesome task, but worth it.
There are risks everywhere. And even more so, dealers, but here usually dealers are not just ordinary people, but those who have been engaged in some kind of art for years. For example, a person who is a fan of paintings can easily become a dealer in this area, since this is his element, and he will not buy low-quality goods for a lot of money.
If you become a company representative, there will be control from the company, which will not have a very good effect on your desire to sell. But less and less is given for the sale of goods every year. If they provided children's goods for sale, I would open a store myself.
Many trading companies offer to become distributors or dealers only to their regular customers who have proven themselves on the positive side on the basis of an agreement concluded with them, but not a single foreign company will give goods for sale to a supplier they do not know; this is very risky for them.
Angelica
For my dacha, I ordered different tools from the factory for cultivating the land. After payment, I was offered to become a dealer in my region. Unfortunately, at that time I could not do this, since I had just bought the product, and it was winter, and I did not test it in operation. Then it was already too late. I checked the markets specifically in the fall and they were already selling their goods with all their might.
Before becoming a dealer (that is, making a good investment financially and organizationally), it is wise to work as a sales agent (that is, the “made to order” option or something similar in essence). Thanks to this, sales tools will be formed and a circle of regular customers will be developed. And in general, you can feel confident in this sales market.
Dara, I was also offered to become a distributor through a company that distributes cosmetics, one of the cosmetic lines, but I was not satisfied with their working conditions. They have a sales plan, and hence bonuses and cash rewards, but this is acceptable for those who are free from other work, and this takes a lot of time.
Angelica
I will be experimenting with different fertilizers this summer. If it works out, I might think about selling it. At the same time, I will conduct an experiment with film and polycarbonate. You can conclude an agreement for the sale of Svetlitsa’s film, this is still rare in our country. But I'm more interested in vermicompost. True, it is expensive and I’m not sure whether they will buy it in the villages.
Dara, why is he so good? It’s just that I also have a problem with flowers, they don’t grow well, they put out leaves, but they don’t bloom. I tried to make different soils, but it didn’t make any sense, they were still capricious. I read a lot of reviews about the HB101 fertilizer, but they don’t send one or two packs, but only a batch.
Angelica
Oh, about the flowers, it’s all chemistry. I bought flowers at the market for planting, they all bloom and are so beautiful and alive. But I planted them from the hypermarket, but they don’t bloom and even grow poorly. I think that initially you need to buy good planting material. Regarding dealership, it’s a good idea, especially since now many products are offered for sale, but it is important to take into account the demand in the region so as not to make a mistake with the niche.
And I have with car dealers. Everyone thinks to the extent of their depravity, as they say. But the “no attachments” label is not entirely appropriate for this topic. You need at least a retail outlet, which is what TS wrote about. And at first, few people will dare to pay you the full amount of the advance payment in the case of “to-order” sales.
Angelica, vermicompost, and specifically even vermicompost contain all the necessary elements for plant nutrition. Plus, this soil is clean from all viral and fungal diseases. No pathogen develops in vermicompost. And now about the flowers. Flowering requires different conditions and the soil and its composition are not always to blame. Sometimes a cold winter is needed for flowering.
Zikam Stone, distributors or dealers, are the same sales workers who have their own property (store, warehouse, outlet), who decide to take a large batch of goods for sale, or purchase it immediately. As for sales agents, their task is to offer manufactured goods, conclude a supply agreement, and control the supply of this type of product. Therefore, in many ways, they have different functions. But both of them are united by the fact that they have a common task, which is to sell goods and find new customers.
Angelica
Don’t think that I’m too picky about the little things, but I’m wondering if there are differences between a dealer and a distributor, I can’t even pronounce this word correctly. Why are the names different if the function is the same? Or is a dealer not a distributor?
I would like to test something for free, a walk-behind tractor for example: rolleyes: .
Dara, this is the same thing, it’s just that now many vacancies are borrowed from other languages, but in fact their meaning and functions do not change, i.e. a wholesale batch of products is taken from the company at one price, and then it is distributed to its clients, but with a preliminary markup . The company encourages those dealers who take an active part in promoting their products and periodically rewards them with a bonus system.
Angelica
The most normal way is to take the goods for sale. Here the profit will depend only on you. If you simply become a representative of the company, you will receive a percentage of sales. He is usually not that tall. And it turns out that you are not running a business, but working for some company.
Dimcha.k, taking goods for sale may be the best way, but no one will simply, without checking you and making sure of your integrity and business viability, dare to entrust you with such a consignment of goods on which you can earn really good money. This is time, and quite a lot. But through a sales office, you can achieve success much faster, even if you don’t have complete freedom of action, especially if you choose the right product niche to work in.