I want to be a distributor. Distributor of a foreign company in Russia: how to start a business from scratch. Options for work schemes

Let's start with who a distributor is. Translated, this means "distribution". In reality, the distributor is a legal entity that sells consumer goods, which are acquired through the sale and purchase and a special agreement of any period at its own expense and with the further sale of the goods. Sales can be anything you like: wholesale, network, retail, etc. But in any case, the pricing policy is conducted or based on the recommendations of the manufacturer of the goods.

To understand how well a particular distributor is performing, metrics such as product sales and distribution levels (both in quality and quantity) in the territory entrusted to the distributor are checked. A distributor begins his work as soon as the purchase of a product is made for its further resale. Distributors can distribute the product on a certain territory themselves, or hire intermediaries or their own agents for this.

To become a distributor, you first need to find a manufacturer of the product. Once you find a suitable company, make up for them commercial proposal to cooperation. What must be indicated in this proposal:

1. Important information about your company or business (as you remember, only a legal entity can be a distributor);

2. Field of activity and territorial distribution;

3. Turnover of the company, its mobility;

4. Clientele (it is very important to indicate and tell in detail about your clients in order to attract interest to yourself).

In addition to such a proposal, it is necessary to prepare an overview of the market you are interested in, study its subtleties, collect the sales volumes of the goods, process the territorial regularity, etc. If, for example, you want to work not in a specific region of the city, but want to become a regional representative (a remote city), then you will interest the product manufacturer with your knowledge of the region and the demand for the product in it.

Always ask the manufacturer for the product, even if you yourself have already learned everything. Ask as much as possible, but on the topic, show your interest. Questions can relate to both the product and its quality, delivery and supply, advertising, logistics, competitiveness, loyal conditions and offers. Then comes the most important thing in how to become a distributor: the organization of the initial contact of the product with the clientele. The easiest way to do this is to participate in an exhibition of a similar product. This way you can find out about competitors, show your product and find customers. Let's say you have already established the necessary contact, which means that it is time for negotiations leading to a distribution agreement. The main thing in this moment is not to spoil the connection between you, but to establish contact to an ideal state.

Distribution in the modern world

So, by concluding an agreement with the manufacturer, you become an official distributor of the goods and receive a certificate of conformity. A distributor can be general or exclusive. You can work in two ways. The first is buying goods from the manufacturer with a distributor discount and getting free samples of the goods. The second scheme of work is represented by the establishment of a new enterprise, which becomes a subsidiary of the manufacturer. Equity participation of the distributor is also a popular option today.

Despite the fact that you have free samples of the product, this is not enough to get started. You will need to purchase the first batch of goods from the manufacturer. You also need to offer it to clients. So, wishing to become a distributor, you must have initial capital, at least for the purchase of goods.

Why is distribution so popular in modern society? The fact is that this work does not take much time, it can only be a part of your income, additional earnings or basic. Recently, more and more girls and women selling cosmetics are becoming distributors, which benefits other women and gives pleasure to the workers themselves. A distributor's income depends directly on sales, and sales, accordingly, on how much time you devote to work.

On good product there will always be a buyer, but what if the buyer is domestic, and the goods can only be bought from a foreign manufacturer? Not every potential consumer is ready to go to another country for a product they like, so you can start making money on this desire in Russia. But before you become a distributor of a foreign company in Russia in 2019, you need to make sure there is a steady demand.

Distributor or dealer - work in a chain

Having established contacts with a foreign manufacturer, an enterprising person will need to decide in what capacity he will be ready to work with him. There are two options: dealer and distributor. Unaccustomed to the Russian-speaking ear, words in translation mean: merchant and distributor. Despite some similarity of concepts, there are differences between them that determine their functional difference.

Difference in definitions

Even a superficial knowledge of English will allow you to find a translation for foreign concepts that have quickly taken root in our lexicon since the 90s. And if in the era of the “wild” market no one delved into the details, now the chosen status also determines a set of rights and obligations.

So, a distributor (general or exclusive) is primarily obliged to arrange the distribution of a product or service. This means that a domestic company or individual entrepreneur will be busy forming a network of wholesale or small-scale wholesalers, as well as developing an intensive advertising campaign for greater brand awareness.

Contacts with small retail outlets and end consumers carried out mainly by dealers. It is their responsibilities that include direct direct sales of goods and services.

Difference in rights

If we represent trade relations in the form of a hierarchical chain, then we get a simple sequence: foreign manufacturer - distributor - dealer. Based on the manufacturer's marketing policy, there can be one or several distributors in the country. The number of dealers depends on the intensity of the distributor's work. It is clear that the commercial success of work in Russia implies the most developed network of those who work directly with the buyer.

How to organize an individual entrepreneur in Russia for a foreigner

It may happen that a citizen of another country, confident that his products will be of interest to Russians, will express a desire to develop a potential market. If you start big business a foreigner does not want, and may wish to launch a trial balloon, then the option of registering an individual entrepreneur in his own name is suitable for him.

Russian legislation does not exclude the possibility of an official commercial activities foreign citizen... To register, he only needs his own and.

A foreigner can quickly and without hassle open an IP online through the proven service "Moe Delo". It is enough to register, enter the necessary data, and the system will give you ready-made documents, which you just have to print and submit to the tax office.

Becoming a Supplier: The Distributor Path

Having chosen a foreign manufacturer, whose goods will be, in the opinion of the future distributor, interesting for the Russian buyer, the main thing is to correctly conduct presentation work and negotiations. A well-designed business plan and forecast data on purchases and sales will help to successfully present your company to foreigners.

Many foreign brands have their own set of requirements for potential partners. They can cover more than financial indicators about the minimum sales.

Among the requirements for the future distributor may be wishes for the location, the availability of warehouses and industrial premises, equipment, personnel and retail space. Demographic and economic indicators of the region can also play an important role.

In addition, before becoming a dealer of a foreign company in Russia, it will be necessary to prove to the manufacturer that the company is able to establish and further develop a partner network.

Options for work schemes

The form of cooperation between the manufacturer and the official distributor may have several options. A foreign company can choose a Russian distributor as the only one that has the right to import their goods and sell them on the territory of the Russian Federation. The broadest and sometimes exclusive rights for the development and expansion of the sales network can be transferred to him. There is a scheme in which for different groups a distributor is selected. Division by region is also possible.

Under an agreement with foreign businessmen, a distributor may be obliged to independently organize a network of representative offices and service centers and set up direct sales.

However, most often there are contracts under which a distributor can delegate authority to work with customers to smaller dealers, while he himself will be engaged in product promotion and expansion. partner network... With such a scheme of work, the distributor will need not only an intensive search for new sales markets, but also information support for dealers, the organization of seminars and entertainment events.

Documentation of cooperation

After preliminary negotiations and receiving positive reviews of the proposal for cooperation, it is time to discuss the draft agreement. According to established practice, a contract with a foreign company stipulates in detail many even small details. Most often it is compiled in two languages \u200b\u200b(Russian and English).

The main pitfall of such agreements can be considered the fact that in any dispute, the text in a foreign language will be taken as the basis. On top of that, lawyers often add a clause on foreign jurisdiction for cases under this document.

A positive aspect of such rigor can be considered a detailed description of all procedures and requirements, a listing of information support information and an attachment to the contract of a list of responsible contact persons.

Work on the basis of a dealer agreement

In addition to obtaining the status of a distributor, a domestic entrepreneur can try to conclude an agreement with a foreign legal entity about working as a dealer. Such cooperation is suitable for those who are ready to work independently in the field of direct sales of imported products, without advertising support and service departments.

This is acceptable in cases where the manufacturer itself already has its own branch in the Russian Federation and is interested in developing a partner network. Most often, a dealership agreement involves prepaid work. If we are talking about the possibility of payment for the goods after their sale and allows you to return illiquid assets, then the manufacturer in most cases reserves the right to set maximum prices and return times.

For an optimal approach to making an informed decision about the form of cooperation, it will be useful to get acquainted with the information about.

How much working capital will require such a business

The answer to the question about the costs of product promotion, the purchase of several starting and presentation batches of goods, the development of a sales network should be announced at the stage of presenting a business plan and negotiating. A scrupulous approach to the preliminary calculation of financial investments is not only useful for ensuring a positive response from a foreign partner, but also advisable for the potential distributor himself.

The amount of capital investment largely depends on the product being sold and on the expected territory of distribution and ramification of the dealer network. It is clear that high-tech gadgets or unique highly specialized equipment cannot be cheap, but the segment of the non-premium clothing brand will be more affordable in terms of material costs and the rate of capital turnover.

Ways to do business with foreigners without investment

If the preliminary miscalculation of capital investments before becoming a representative of a foreign company does not correspond to the available savings, it is possible to offer draft contracts with the distribution of the financial burden between the parties.

To reduce the size of the initial investment, you can try to agree on a free delivery of at least a trial batch of products. Despite the riskiness of such a transaction, the contract can provide for some methods of insurance (for example, financial guarantees from a bank or insurance). Moreover, this option may become the only opportunity for foreigners to penetrate new markets.

Another way to promote a product without buying it out is through an agency agreement. In this case, the ownership of the goods does not pass to the distributor, he will only receive the commission specified in the contract.

Usually the agent's profit is less, but in conditions of a shortage working capital this output seems to be optimal.

Pros and cons of working on behalf of a foreign partner

The indisputable advantage of working on the basis of an official representative office is that the distributor is guaranteed the support of the manufacturer. In the case of cooperation with a global brand, marketing is much easier.

The disadvantage can be considered stiffness in decision-making. In the overwhelming majority of cases, the manufacturer strictly controls the implementation of the image requirements of the contract, insists on increasing the minimum sales volumes, sometimes it comes to applying a system of fines or reducing the amount of remuneration based on the results of the sent inspection.

The term distributor is familiar to many professional entrepreneurs and ordinary citizens, and the latter is often associated with myths and misconceptions, which we will try to dispel in this article.

What is a distributor?

A distributor is an intermediate link between the manufacturer of a certain product and its end consumer, whose activity is to sell goods in a certain territory. Distributors are the official representatives of companies and are entitled to trademark protection or brand.

These representatives are divided into:

General - get the right to sell products using their own infrastructure and resources;
Exclusive - as a rule, they act as representatives of foreign companies and sell goods through an established network of dealers and retailers.

What does a distributor do?

A distributor is an official representative of a product manufacturer, who sells it to wholesalers and retailers, less often to end consumers.

The complete sales chain for goods is as follows: manufacturer-distributor-dealer-retailer-consumer. Among other things, some companies independently change this systemremoving some elements.

The list of responsibilities of a distributor depends on the nature of the products sold. The sale of small batches of expensive goods can be carried out by one person, if he is able to find a sales market, has the right to conclude contracts, and has some knowledge in the field of marketing. However, the distribution of a mass product requires a whole staff of employees and representative offices in several regions of the country, connected by logistics chains of transportation and supply.

The activities of the dealer and the distributor are in many ways similar, but the latter makes a profit by buying the manufacturer's product at a discount and selling it at full price. The dealer's income is formed from the margin, which in the conditions market economy limited only by the demand for the product.

Responsibilities of the distributor:

Product marketing promotion;
Transportation and delivery of goods with the return of the barracks and containers;
Formation of a distribution network and establishment of transport logistics;
Control of commodity supply and stocks of products;
Warehousing and storage of purchased goods, as well as ensuring their protection;
Compliance with the implementation of the manufacturer's quality standards;
Conclusion of transactions related to property rights to the products sold;
Formation of the final price per unit of goods.

How difficult is it to become a distributor?

Who is a distributor and what he does, we told, now we will find out how to become a distributor. To distribute the manufacturer's product with him, you need to conclude distribution agreementwhich results in certificate for the right of official representation of a trademark or commercial name. Distributor Agreement - legal contract, which indicates the procedure and volumes of purchases, the percentage of discounts and the cost of products purchased from the manufacturer, the conditions for the return of surplus stock, responsibility for non-compliance with quality standards and other essential conditions.

Most manufacturers provide a model distribution agreement with standard conditions and prices, which can be found in advance from official documents or publications on the company's Internet resource.

The agreement may also specify the requirements for the distributor, as a rule, they depend on the quantity, cost and features of the products. Popular commercial name with an established production system may require the distributor:

Availability of transport infrastructure for deliveries;
Warehouses and storage facilities that meet certain standards;
Purchases of large volumes of products (which means the availability of funds);
Competent staff to fulfill the agreement.

To get status exclusive distributor of a foreign company additionally, knowledge of the language of the country of origin is required, the ability to frequently carry out flights / relocations to negotiate and solve other problems, as well as experience in product distribution and good sales performance.

If these requirements are met, the legal or individual can obtain the right to represent a foreign manufacturer and actually become a monopoly on the sale of its products in the territory of its country, which will provide large incomes.

How to become a distributor?

Distribution - professional activity for the distribution of goods, for the implementation of which resources and knowledge are needed. It is extremely difficult to become a distributor without initial capital investments and a developed infrastructure for storing and transporting goods, in particular, it concerns cooperation with foreign companies... However, the sale of the manufacturer's products can bring a good profit in the absence of the need to establish and control the production process.

Let's try to figure it out - who are dealers, what are they for and what is needed in order to become one?

Almost every serious company in its development reaches the level when it is necessary to increase the volume of production and expand the geography of sales to increase profits. And it is at this stage that the search for a person begins who could be engaged in promoting the goods of this company in a certain region of the country or abroad.

So, a dealer is a legal entity or an individual who purchases the company's products at wholesale prices and on special terms and sells them in small wholesale or retail. In other words, it is an intermediary between the manufacturer and the buyer or other intermediaries. Due to the fact that the dealer is the largest wholesale buyer, he has exclusive conditions for the purchase of goods, buying it at the most low prices and with all kinds of discounts.

Similar conditions are beneficial for the manufacturer of products, which, in addition to increasing volumes, also receives representation of its goods in a new region, while shifting the decision of most organizational issues to an intermediary. In addition, when concluding an agreement, an item is stipulated on the regularity of the purchase of goods, thus saving the manufacturer from searching for a sales market for his products.

If you are planning to open an individual entrepreneur, you should know which ones you will have to pay

The qualities necessary for the intermediary.

Not every person is given to reveal himself in the field of trade, for this it is necessary to have certain qualities, without which you should not even start, otherwise you will simply waste your energy, time and money. It is possible to become a representative of one of the most popular cosmetics companies Avon, and earn money without leaving your home, on the official website http://myavon-company.ru<

In order to count on success, you must have the following qualities:

- Stress tolerance;
- Purposefulness;
- Competitiveness;
- Activity;
- Initiative.

This set of qualities will allow you to achieve success in your business and grow in career and financial terms.

Remember, you just have to radiate confidence - "that you are right." Your task is to convince potential customers that the product you offer is the best and highest quality. If you are negotiating with a representative of stores or other retail chains, then try to make them believe that the products you provide will simply be swept off the shelves. You must be very convincing and perfectly know the products you offer in order to persuade them to cooperate with you. Be prepared for the fact that there will be failures, this should not unsettle you, know that somewhere “your” client is waiting for you, you just need to find him. But if you don’t find it, then become a representative of one of the most popular cosmetics companies Avon, and earn money without leaving your home, perhaps on the official website http://myavon-company.ru

Required documents.

To qualify for the position of a company representative, a number of documents are required, because this is an official business that can bring serious money.

As a rule, the supplier usually requires the following conditions to be met in order to sign a cooperation contract:

- You must be a legal entity.
- Mediation agreement.
- Office presence.
- Availability of a certificate.

In order to conclude an agreement, you will need the following documents:

Passport data.
Certificate of registration with government agencies.
Certificate from the tax office.
Bank details.
Memorandum of association.
Dealer charter.

Permission to sell the vehicle from the traffic police (if you decide to work in the automotive business).

You will have to certify contracts and documents with a notary. And we already know our notary office

Premises lease agreement.

When you have collected all the documents, became the official representative of the company and concluded all the necessary contracts, do not think that you will be left to fend for yourself and you will have to cope with the difficulties that arise on your own. Your success as a dealer means increased profits for your partners, so they will support you and assist you in every way.

The first steps.

As soon as you have received an appointment in your region, the question arises before you, what are the first steps to take in this business in order not only not to burn out, but also to make a profit? First of all, monitor the market in the territory entrusted to you and find out how strong the interest in your product is and in what ways you can spur the level of its sales. Study the main competitors and how they work.

Try to build your own customer base and entice customers from your competitors. Using the Internet, make a list of companies that may be interested in your product, before making an appointment, try to inquire as much as possible about your potential client. Based on the data obtained, choose a line of conduct - during negotiations. The wider your client base is, the greater your profit will be, and money, as you know, is a fairly strong motivator.

What are the criteria for choosing a dealer?

If you want to work with a large and serious company, you will have to compete with other job seekers. In order to have an advantage over them, you need to know what the companies pay attention to when choosing a dealer. First of all, this is your experience in this area, the region in which you live is of great importance.

If the company does not have a representative office in this region, they will be more willing to cooperate with you. You will be given preference even if you already have your own established client base. Also, great attention is paid to the business plan provided by you, your reputation, the availability of a technical base, qualified workers and the possibility of warranty customer service. So - the better you prepare, the more likely you are to get the job you want.

How much money needs to be invested.

The majority of those who want to try themselves as a dealer immediately have a question, how much will I have to invest in this business? There is no unequivocal answer to this question, because many factors affect this, moreover, it all depends on the scheme you use. After all, you may be able to agree with the manufacturer on receiving products for sale, in this case you will avoid large investments and pay off the company after you sell the goods, but the price under such a scheme will be slightly higher than if you paid immediately.

If you decide to pay for the goods immediately, then the size of your investment will depend on the type of goods and the volume of the batch you are purchasing. Do not forget to take into account the costs of delivery of goods, rental of warehouse and office space, recruiting employees and legal and accounting support for your activities. Often a scheme is used by which the buyer makes a pre-order and prepays the dealer. By the way, the latter, in turn, having received the money, pays for the goods to the manufacturer, and the amount remaining in addition to the prepayment is the profit that the intermediary received.

In general, if you do not have a sufficient amount, you will have to convince the manufacturer to go to your meeting and choose the option in which you will not need to shell out right away.

This type of activity has many pitfalls, but at the same time it is very interesting and very profitable. But only a competent approach and comprehensive analysis will make it possible to achieve success, because only overcoming difficulties can you get something worthwhile.

Perhaps, after reading this article, you will think about how not to spend your money on dealerships, but just your favorite company.

Our Russian consumers have long been accustomed to imported goods and they are always in good demand. Therefore, the profession of a distributor is in fact in great demand.

Today we decided to talk about how Russian distributors actually work with foreign manufacturers. This area is not often talked about, but this activity is very profitable and the Russian market needs such professionals. Let's talk today in detail about the intricacies of this profession and how to start working in this area.

Main functions of a distributor

In general, the primary task of the distributor is the maximum expansion of the sales regions of any product. Usually, a distributor is an intermediary between the manufacturer and dealers who are already engaged in the direct sale of goods to end customers. Therefore, the function of a distributor usually also includes the creation of a dealer network. One or several distributors can work in the market of the importing country at the same time, it depends on the demand for this particular product from our customers.

Thus, the distributor creates a sales market for the products of a foreign manufacturer in our country, and the greater the capacity of this market, the larger the regional dealer network, the higher the distributor's income.

The distributor himself, after creating a dealer network, may no longer engage in direct sales at all, his main function becomes only to maintain the functioning of the sales chain he has created and to generate income from the total trade turnover of goods sold.

Depending on their intentions and an agreement with a product manufacturer, a distributor can become a general importer for a given foreign manufacturer, develop additional services, or, for example, arrange supplies of components. In this case, the responsibility of the distributor will include the warranty exchange of low-quality goods, components and spare parts.

Usually, manufacturers have standard distribution agreements that contain a set of specific conditions, often with specific requirements related to the legal practice of a given exporting country and the characteristics of the product. Often, the contract with the manufacturer also contains an indication of the volume of products that the distributor needs to sell for a certain period of time. All this must first be clarified and carefully studied all the terms of future contracts.

When creating a dealer network, a distributor must understand that in the future a lot will depend on the partner-dealers selected by him, because then they will represent the foreign manufacturing company before the end buyer.

Therefore, the distributor should take care of carrying out the necessary advertising and marketing campaigns in order to create the image of the manufacturer of the product, and its promotion in the domestic market.

How and where to start - step by step instructions

Where to begin:

First you need to decide in which industry and with which product you would like to work;
Study the current situation with supply and demand for these products in the Russian market;
Choose a foreign manufacturing company for these products;
Then you need to carefully study the conditions of work of this manufacturer with distributors, perhaps request to send a standard contract by e-mail;
If at first glance your project looks profitable and realistic, then you can start drawing up your business plan;
When drawing up a business plan, you need to calculate as accurately and in detail as possible all the main financial components of your future project, calculate the main income and expense items, take into account possible risks;
If the business plan has shown that your project is profitable, then you can safely proceed to its practical implementation - your official registration as a businessman (opening an LLC or individual entrepreneur), concluding agreements with partners, organizing an office and a dealer network.

Some subtleties of distributor work organization

First you need to find a suitable foreign manufacturer. First of all, choose your field of activity, define an approximate list of goods, the sale of which is in demand on the market and can bring good profit. Then, on the Internet, look at the data on sales and manufacturers on business sites (for example, the international all.biz site, the European eurolots.com site, the Chinese aliexpress.com site), also find the suppliers' contacts on the sites.

Additional information about a potential foreign partner can be found on the websites of various websites, for example: www.ved.gov.ru, creditreform.com, europages.com.ru.

Then you need to study the preliminary general conditions of the supplier, compose and send him an e-mail - your preliminary commercial offer "in the most general terms".

Usually, the working conditions of a distributor are determined by its status (general, exclusive) and the terms of an agreement concluded with a foreign manufacturing company. The key responsibility of a distributor under such standard contracts is to organize a scheme for the distribution and sale of the manufacturer's products, and provide related services.

There is a generally accepted organizational scheme: foreign manufacturer - distributor - dealer - buyer.

There are two generally accepted options:

general distributor, this is when the importer sells goods in his country according to his own scheme, independently or by organizing a dealer network;
an exclusive distributor, in this case, the transfer of rights to distribute imported products occurs only within the region specified in the agreement with the manufacturer and without the involvement of third parties. In the case, a distributor can usually already work with only one supplier, a foreign manufacturer.

As a rule, the sale of goods and services to retail outlets and specific retail customers, as well as all the necessary interaction with them, is carried out by a dealer hired by a distributor.

It is the responsibility of the dealer that includes direct sales, not the distributor; it is important to always remember this when organizing and ensuring the effectiveness of the sales scheme. Only a clear delineation of all responsibilities and functions allows you to create and maintain effective business projects.

Based on the specifics of the product and the current situation on the market, a foreign manufacturer may have one or several distributors, this also determines the basic terms of the agreement between the manufacturer and the distributor. The current market situation and the specifics of the goods also determine the conditions for organizing a dealer network and the intensity of the distributor's work.

Some foreign manufacturers already have some kind of representative office or just an office in the importing country, then it is quite easy to establish interaction with the manufacturer-supplier, since the company's representatives are already well acquainted with the peculiarities of the Russian business and it will be easier and faster for you to agree on everything with them. ...

If a foreign company does not have any representatives in our country, then establishing contacts will require much more time and good command of a foreign language. First of all, it will be necessary to study the specifics and basic conditions of work of a foreign company with distributors, as well as familiarize them with the peculiarities of Russian conditions. In this case, you will also need to make several foreign business trips, conduct presentations in a foreign language. Such negotiations and approvals require significant time and additional effort - you will have to independently study a lot of additional information, be ready to explain a lot and convince partners of the economic profitability of the project, and negotiations will have to be conducted at the international level and according to international business standards.

It is very important here to competently prepare and conduct negotiations and presentations in front of foreign potential partners. It is very important to study all the nuances of cooperation, prepare a competent business plan and presentation, present a forecast plan for purchases and sales.

But the complexity of direct preliminary international negotiations with a foreign manufacturer, which does not yet have its representative office in our country, will then pay off, this will allow you in the future to act on his behalf at all events held in our country and exclusively represent his brand.

It is necessary to say a few words about the organizational and legal form of the distributor, foreign partners, partners and buyers in our country are always more willing to interact with legal entities than with individuals.

To engage in distribution activities, it is better to choose the organizational and legal form of a legal entity "LLC" than an individual entrepreneur, this is more familiar to partners and causes more confidence. For dealers, however, both forms of "LLC" and "IP" are quite acceptable.

The legal form of a dealer, rather, depends on the business personal qualities of a businessman, and the regional specifics where he operates.

It is important to know that some foreign companies already have their own list of requirements for potential partners, as well as approximate schedules and volumes of deliveries of their products through export channels, requirements for financial performance, volume of consignments, minimum deliveries and sales.

Sometimes foreign manufacturing companies put forward requirements for distributors in terms of their regional location, availability of warehouse and retail space, technical equipment, and even impose some requirements on personnel.

Some foreign partners make their own forecast plans for the sale of products, use data from Russian statistics on economic activity in a specific selected region, demographic situation, and demand for similar products.

Foreign companies always use well-calculated business models, and therefore, you need to be ready to competently substantiate your position in the negotiations, provide various additional data, provide explanations, and convince of the mutual benefits of the upcoming partnership. During negotiations, it is also important to show that you will be able to organize an effective dealer network, arrange sales of products in the required volumes, maintain and develop a regional network in the future.

A distributor, being an official representative of a manufacturer, can usually count on his commercial support. Let's also note that, often international nonsense is interesting to consumers in itself, it may already be known and has proven itself well, perhaps many consumers would like to purchase such products.

Possible schemes for working with foreign manufacturers

Sometimes a contract with a manufacturer can impose rather strict conditions on a distributor and restrict the freedom to make his independent decisions, it is also possible to impose penalties on the part of the supplier, if the terms of the contract are not met, the minimum level of sales. This must always be taken into account. And sometimes, on the contrary, the distributor is given the broadest authority.

As already noted, sometimes foreign manufacturers prefer to work with only one Russian distributor partner, and sometimes large manufacturing companies choose distributors for each specific group of their products or for regional segments.

Some distribution agreements stipulate that it is the responsibility of the importer-distributor to organize brand representations in their country, as well as service centers and regional points of sale. But usually, nevertheless, distributors work through dealer networks and do not engage in direct sales. In this case, the main functions of a distributor are organization of a dealer network, regional expansion, advertising promotion of products, organization of presentations and other events related to attracting new consumers. All these conditions are negotiated with the foreign partner in advance, even before the conclusion of the contract.

The conclusion of a contract is a very important and responsible event for a distributor, since international contracts usually provide for the statement in the contract of the smallest details of cooperation between business partners. International agreements are usually drawn up in two languages, usually English and Russian.

When various disputes arise, foreign partners usually rely on the text set out in English. In addition, they immediately prescribe in the contract the consideration of all disputes in foreign jurisdictions. You need to know this and be ready for it.

Some domestic entrepreneurs choose a scheme of cooperation with a foreign manufacturer under a dealer agreement. That is, they are ready to combine both dealer and distribution functions, but they enter into a “dealer” agreement, which is usually more “flexible” and gives the entrepreneur more freedom of independent action. But let us note that usually according to this scheme, more attention will need to be paid to direct sales, less opportunities for advertising and service support from a foreign manufacturer. It is also important to note that such contracts provide for the supply of goods on a prepayment basis. There may also be some additional conditions on the timing of the return of defective or illiquid products and other restrictions. In some cases, such a scheme of work may not be very acceptable.

In any case, whatever scheme of work you would not choose for yourself, it is necessary to study in advance, stipulate and spell out all the terms of partnership in the contract.

How much money should be invested and is it possible to do without capital investment

In general, the organization of any business requires at least minimal investment. If you do not have the ability or desire to make the necessary start-up costs, then in this case, then offer your foreign partner the distribution of forthcoming financial costs between the parties or postpone them in time. For example, you can ask to make a trial delivery of goods with a deferred payment or pay-as-you-go, that is, after receiving the proceeds from the sale.

This option is quite acceptable if the contract is concluded with the provision of bank guarantees or additional insurance for the delivery of goods.

If you competently prepare all the necessary papers, then foreign partners may well agree to work according to this scheme.

There is also the option of concluding an agency agreement. If such a scheme of interaction is implemented, the ownership of the goods remains with the manufacturer, and the distributor receives only his agency fee (commission). Perhaps the agent's fee is less than the distributor's estimated income, but it allows you to do without the "start-up" costs.

“Start-up” costs usually include the following costs:

costs of preparing a business plan;
presentation preparation and advertising costs;
travel expenses;
purchase of a trial batch of goods;
fare;
office rental costs;
warehouse rental costs;
other organizational costs.

The amount of "start-up" costs required depends largely on the products you choose and the expected scale of activity.

You can reduce the initial costs if you do most of the work yourself, without attracting additional personnel, as well as carry out the implementation through your own website or websites of online stores, negotiate direct deliveries from the manufacturer at the time you need and self-delivery.

Business plan

A business plan is a very important document that allows you to clearly calculate the main financial indicators of a future project. In addition, another important task of the business plan is the presentation of the business project to potential distributor partners. A competently drawn up and accurately calculated business plan is in many ways the key to the successful implementation of any project.

Any business plan should include the following sections:

Project summary - here it is necessary to give a general description of the project;
Marketing plan - this section should include an assessment of the current market situation for this product, analysis of supply and demand, it is desirable to present an analysis with data on specific regions, target audience. Analytical and statistical information for this section, at the initial stage, can be taken from the Internet;
Organizational plan - in this section it is necessary to outline and calculate the scheme of your upcoming distribution activities;
Risk assessment - in this section of the plan, it is necessary to indicate and assess the possible potential risks for this type of activity, as well as propose ways to minimize them (for example, risk insurance);
Conclusion - here it is necessary to give a general assessment of the economic feasibility of this project, to show its profitability.

In fact, for distribution activities, the main costly section is the “Organizational plan” section.

This is due to the fact that the costs of Marketing, namely marketing analysis, can be done independently using the Internet, and the costs of online advertising are minimal (set yourself any amount that is acceptable for you).

Risk assessment is, as a rule, only approximate calculated amounts. Bank guarantees can be issued. It is possible to conclude insurance contracts with insurance companies, but this will already require some costs.

Purchase of a batch of goods 1 million rubles;
Office rent - 100 thousand rubles;
Payment of utility bills and communications - 12 thousand rubles;
Warehouse rent - 100 thousand rubles;
Transportation costs - 30 thousand rubles;
Salary of employees - 150 thousand rubles. (3-5 people);
Payment of taxes and fees 40 thousand rubles;
General organizational and administrative expenses - 20 thousand rubles;

Thus, we received a very approximate total cost - 2,352 thousand rubles.

Conclusion

As you can see from our brief business plan, the bulk of the cost is spent on purchasing a trial batch of goods. This item of expenditure depends entirely on the type of goods and can vary greatly. In addition, as we said above, there are quite acceptable options for negotiating with the manufacturer on deliveries without making an advance payment.

This is followed by an item of expenses for renting an office, but now most of the work can be done at a home computer or rent an office with a minimal area - this will significantly reduce the cost of this item.

The cost of renting a warehouse can be removed or at least reduced by organizing direct deliveries to retail outlets or dealerships. Transportation costs can also be greatly reduced by shifting these costs onto dealers and building a more careful import schedule. Additionally, you can save a lot on running costs if you do not inflate the staff and effectively build the entire organizational structure and sales chains.

Distribution activity is just such a type of activity where the initial investment and operating costs are largely determined by the businessman himself.

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