I want to be a distributor. How to open a distribution company. Distributor or Dealer – work in the chain

On the 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 that there is a steady demand.

Distributor or Dealer – work in the 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. The words, unusual for the Russian-speaking ear, 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 of foreign concepts that have quickly taken root in our vocabulary 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.

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

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

Difference in rights

If we imagine trade relations as a hierarchical chain, we get a simple sequence: a foreign manufacturer - a distributor - a dealer. Based on the manufacturer's sales policy, there can be either 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 IP in Russia for a foreigner

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

The legislation of the Russian Federation does not exclude the possibility of 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 My Business service. It is enough to register, enter the necessary data, and the system will give you ready-made documents that you only have to print and submit to the tax office.

Become a Supplier: The Distributor Journey

Having chosen a foreign manufacturer, whose goods, in the opinion of the future distributor, will be of interest to the Russian buyer, the main thing is to properly conduct presentation work and negotiations. A well-written 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 may include not only financial indicators on minimum sales.

Among the requirements for a future distributor may be wishes for the location, the availability of warehouses and industrial premises, equipment, personnel and retail space. The 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 may elect a Russian distributor as the only one entitled 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 different groups goods are selected by their distributor. Regional division 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 work on direct sales.

However, most often there are contracts under which the distributor can delegate the authority to work with clients to smaller dealers, while he himself will be engaged in product promotion and expansion affiliate 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, organization of seminars and representative events.

Documentation of cooperation

After conducting 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 foreign company details even the smallest details. Most often it is compiled in two languages ​​(Russian and English).

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

A positive aspect of such rigor can be considered a detailed description of all procedures and requirements, a listing of data on information support and an appendix to the contract with 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 on 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 territory of the Russian Federation and is interested in developing a partner network. Most often, the dealer agreement implies work on an advance payment. If we are talking about the possibility of paying for 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 periods.

For an optimal approach to making an informed decision on the form of cooperation, it would be useful to familiarize yourself with information about.

How much working capital will such a business require

The answer to the question about the costs of product promotion, the purchase of several starter and presentation batches of goods, the development of a distribution network should be announced at the stage of presenting a business plan and conducting negotiations. 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 expedient 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 the branching of the dealer network. It is clear that high-tech gadgets or unique highly specialized equipment cannot be cheap, but the segment of a 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 investments

If the preliminary calculation of capital investments before becoming a representative of a foreign company does not correspond to the available savings, draft contracts can be proposed with the distribution of the financial burden between the parties.

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

Another way to promote a product without purchasing it is an agency agreement. At the same time, the ownership of the goods does not pass to the distributor, he will receive only the commission specified in the contract.

Usually the agent's profit is less, but under conditions of 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 terms of official representation is that the distributor is guaranteed the support of the manufacturer. In the case of cooperation with a global brand, the establishment of sales is noticeably facilitated.

The disadvantage may be considered stiffness in decision-making. In the vast majority of cases, the manufacturer rather tightly controls the fulfillment 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 verification sent.

Each of us has heard the word “distributor” many times, but not everyone had to think about how to become a distributor. We are all looking for ourselves in this life, and the profession of a distributor implies freedom, including financial freedom.

A distributor is a trading company that purchases their products from manufacturers on favorable terms and sells products on regional markets. The distributor is the second link in the trade chain, it comes right after the manufacturer.

How to become an official distributor?

The secret of the distributor's profit lies in the fact that he works with manufacturers on the most favorable terms, receiving privileges and the maximum possible discount on products.

What are the responsibilities of a distributor? He must conduct active sales according to a well-chosen scheme of work. The key to success will be energy, enterprise, the ability to conduct and conclude profitable deals. Here is the main list of responsibilities of a distributor:

  • active search for clients;
  • conducting product presentations;
  • signing contracts and closing deals.

What does it take to become a distributor?

Every person who has the necessary qualities of nature and a burning desire to earn good money by working for himself can master this profession. If you wish to become a distributor of a particular company and are already individual entrepreneur, you should just apply to the manufacturer. Attention, you should choose companies for cooperation carefully! Give preference to the most well-known companies with extensive experience, work experience, good reputation. Do not be lazy to compare the terms of cooperation, calculate the benefits and economic effect, look for "pitfalls". Choose the best, only in this way you can beat your competitors and offer your potential clients the best quality products at fair prices.

Once your application has been reviewed, you will receive a response. In case of a positive decision, the specialists of the enterprise will contact you, they will clarify all the details of cooperation. Collaboration can be regular or remote. Normal cooperation is within the framework of one locality or county, and remote - within different regions or when searching for customers through a.

Now you know more about how to become a successful distributor. Work hard, move forward, learn and act, and then success, luck and financial well-being will surely become the constant companions of your business!

Business involves the union of the manufacturer, distributors, lenders, retailers and buyers.

There are hints how to become an official distributor:

Get a room for storing goods and accommodating freight transport;
find customers with software logistics management.

Distribution is activities of an enterprise or organization that is responsible for the logistics of storage and transportation of materials.

A distributor may specialize in a wide range of different sectors, depending on local competition, resources and capacity. In the way that become a distributor it is important to determine the target group of customers and purchase the equipment necessary to meet their needs. For example, distributors that deal in perishable food products (dairy, meat or frozen) should have a cold store and trucks.

Depending on the number of warehouses, type of customers, materials, distribution activities need a certain amount of space for storing goods. By becoming a distributor, distribution companies may be solely responsible for moving items around the world, or they may participate in a network of smaller companies that provide access to local resources. Becoming a distributor, the company must trace the entire chain of movement of goods.

The location of storage space is very important for a distributor. Warehouses inside big city are very expensive if they are privately owned or rented. . As a distributor, your best bet is to look for a central location close to a major highway, airport, or waterfront. It can be bought for a reasonable price, assuming it is outside the main city limits.

As a distributor, you need to have a reliable way to transport materials. There are two options: purchase your own fleet of vehicles, or use a courier service. For those who want become an official distributor It is important to remember that there are benefits and risks associated with each option.

A distributor who invests in trucks must hire staff, pay for insurance and fuel. Courier firms take full responsibility for maintaining the equipment, but courier fees represent a significant detriment to the distributor. When you decide become an official distributor, it is important to be able to adjust as the business climate changes. Thus, distributorship is the responsibility for the movement of goods from the manufacturer to the client.

By becoming a distributor, the company is responsible for the safety of the production of retail customers. The firm takes possession of the goods and is responsible for the storage and distribution of these goods to the retail store. In a typical agreement, a manufacturer sells their product directly from a distributor.

If, after becoming a distributor, the firm is unable to find a retailer, it must determine other methods of selling the product. Accurate tracking of shipments, purchase orders, location and distribution is a central part of the job. There are several quality software products to assist with key business functions that help you become an official distributor.

We have highlighted some points of the topic " How to become an official distributor". The main thing is to think over the scheme of goods movement. But initially you can take loans, receiving income from a large turnover of goods.

Many people dream of becoming a distributor. This is not surprising, because a person holding such a position usually receives a fairly high salary, works according to a free schedule, travels a lot, does not sit in the office in one place, and even decides for himself how exactly to do his job. As you can see, this profession has many advantages.

There is only one minus, and it lies in the fact that not everyone knows what exactly the job of a distributor is, and most importantly, how to become one.

To begin with, it is worthwhile to understand that the distributor, no matter what company he works for, is building a sales market for this company. Well, becoming a distributor is not difficult.

The following describes what is required for this, and where you can start.

What does it take to become a distributor?

In fact, anyone can become a distributor. All that is needed for this is a desire to work, and at least an approximate understanding of the functioning of the market for goods and services that the company is aimed at. And, of course, it goes without saying that you need to start the path to becoming a distributor with the choice of an organization whose products you want to distribute.

You can choose both direct manufacturers and intermediary companies. For example, you can be a distributor of a specific Lipton tea, or a wholesale tea shop, then you can distribute products from different companies.

In order to choose who to work for, it is simply worth considering what things or services you would most enjoy selling.

Don't know how to become a company distributor? Follow our advice!

When you have chosen a company whose products or services you want to sell, it is worth first of all to find out how things are with distributors in this company.

Sometimes it happens that the company itself hires distributors, and sometimes the recruitment of people for this position is carried out by an intermediary recruiting firm. This information can be found on the Internet, or in extreme cases, you can write a letter directly to the company.

There is usually no limit to the number of distributors, although there are situations where a firm will assign only one wholesale distributor per area.

In any case, it is possible to break into this position, even if not open vacancies. To do this, you can write a letter to the company, or call the phone designated for contacts on cooperation. However, it is very important to prepare in order to be competitive. For this you need:

  • Familiarize yourself with the assortment of the company;
  • To get acquainted with the market and the current situation in the sale of the company's goods;
  • Develop several proposals for increasing sales of the products offered by the company.

How to become a distributor of a foreign company

It is very convenient to work as a distributor in a foreign company, because such companies rarely have a good sales market in our country, therefore, there is a large field of activity, and considerable prospects open up.

In order to become a distributor of any foreign company, one should

  • choose a company first
  • to get acquainted with its assortment,
  • learn about the current situation in the sales of the company's products
  • be ready to offer your solution to improve sales.

When contacting a foreign company, you should describe why you are the perfect fit to be a distributor abroad, that is, in your area, and exactly how you can help this company expand its market.

Step-by-step instructions on how to become a clothing distributor

If you like clothes, becoming a distributor for the company that makes or sells them is a great solution. You can work on both wholesale and retail sales.

After you choose specific company, whose goods you want to distribute, and get a job as a distributor, having shown your familiarity with the market and competitiveness, you can start working according to the following scheme:

  • Assess which category of the population may like the company's clothing;
  • Find stores in the city, including online, that are aimed at selling clothes to a category of people who may be interested in the company's products;
  • Write out the main advantages of your company's clothing, prepare a catalog of it the best goods and with all this go shopping, describing how profitable it will be for them to sell the clothes you offer.

Getting a job as a food distributor is the easiest, as there are a lot of food companies, and they constantly need to expand their sales market.

Follow this plan:

  • Find the right manufacturer or major wholesale store;
  • Check out the range;
  • Propose your candidacy for the role of a distributor by preparing several interesting ideas relatively more effective product sales;
  • Find Retail Stores, where your product is not yet represented, and convince them to distribute it;
  • Walk through the establishments Catering offering to order exactly your grocery items.

Acting as described above, you will become not just a distributor, but a good distributor.

Let's start with what a distributor is. Translated, it means "distribution". In reality, the distributor is entity engaged in the sale of consumer goods, which are acquired through the purchase and sale and a special agreement of any period at its own expense and with the further sale of the goods. Sales can be anything: 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, indicators such as the sales volume of the product and the level of distribution (both in quality and quantity) in the territory assigned to the distributor are checked. The distributor begins its work as soon as the purchase of goods for its further resale is made. Distributors can distribute goods in a certain territory themselves, or hire intermediaries or their own agents for this.

To become a distributor, you must first find a manufacturer of goods. As soon as you find a suitable company, make up for them offer to cooperation. What to include in this proposal:

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

2. Scope 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 sales volumes of the goods, process the territorial pattern, etc. If, for example, you want to work not in a specific region of the city, but want to become a regional representative (remote city), then you will interest the manufacturer of the goods with your knowledge about the region and the demand for goods in it.

Always be interested in the product from the manufacturer, even if you yourself have already learned everything. Ask as much as possible, but on the topic, show your interest. Questions may relate to both the product and its quality, delivery and supply, advertising, logistics, competitiveness, loyal conditions and offers. Next comes the most important thing in how to become a distributor: the organization of the initial contact of the goods with the clientele. The easiest way to do this is to participate in an exhibition of a similar product. So you can learn about competitors, show your product face and find customers. Suppose 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, having concluded an agreement with the manufacturer, you become the official distributor of the product and receive a certificate of conformity. A distributor can be general or exclusive. You can work in two ways. The first is buying a product from a manufacturer at a distributor discount and getting free samples of the product. The second scheme of work is represented by the establishment of a new enterprise, which becomes a subsidiary of the manufacturer. Also a popular option for today is the equity participation of the distributor.

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

Why is distributorship 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, extra income or main. Recently, more and more girls and women involved in the sale of cosmetics have become distributors, which benefits other women and gives pleasure to the workers themselves. The distributor's income depends directly on sales, and sales, respectively, on how much time you devote to work.

 

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