I want to be a distributor. How to open a distribution company. Distributor or dealer - work in a chain

There will always be a buyer for a good product, but what if the buyer is domestic, and the product 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 in 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.

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 deploying an intense advertising campaign for greater brand awareness.

Contacts with small retail outlets and the final consumers are mainly dealers. It is their responsibilities that include direct direct sales of goods and services.

Difference in rights

If we imagine 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 a foreigner does not want to start a large business, and may wish to launch a trial balloon, then the option of registering an individual entrepreneur in his own name is suitable for him.

The legislation of the Russian Federation 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 products 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 performance about the minimum sales.

Among the requirements for a future distributor may be wishes for the location, availability of warehouses and industrial premises, equipment, staff 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 schemes of work

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. He can be transferred to the broadest, and sometimes exclusive rights for the development and expansion of the sales network. 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 conducting preliminary negotiations and receiving positive reviews for the proposal for cooperation, it is time to discuss the draft agreement. According to established practice, a contract with foreign company specifies 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 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 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 to work 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 himself 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 its 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 does such a business require?

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 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 investment

If the preliminary miscalculation of capital investments before becoming a representative of a foreign company does not correspond to the available savings, you can 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 enter 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 terms of an official representative office is that the distributor is guaranteed the manufacturer's support. In the case of cooperation with a global brand, marketing is much easier.

The disadvantage can be considered the constraint in making decisions. 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.

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 assumes freedom, including financial freedom.

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

How to become an official distributor?

The secret of a distributor's profit is 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, ability to conduct and conclude profitable deals. Here is a basic list of distributor responsibilities:

  • active search for clients;
  • conducting product presentations;
  • signing contracts and concluding transactions.

What does it take to become a distributor?

Anyone who possesses the necessary qualities of nature and is eager to make good money working for himself can master this profession. If you want to become a distributor of a specific company and are already individual entrepreneuryou just have to apply to the manufacturer. Attention, you should carefully choose companies for cooperation! Give preference to the most famous companies with extensive experience, work experience, and a good reputation. Do not be lazy to compare the terms of cooperation, calculate the benefits and economic effect, look for "pitfalls". Choose the best, the only way you can bypass competitors and offer your to potential customers the highest quality products at loyal prices.

When your application is considered, 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. Conventional cooperation takes place within one settlement or districts, and remote - within different regions or when looking for clients through a.

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

A business involves an alliance of manufacturers, distributors, lenders, retailers and buyers.

There are clues how to become an official distributor:

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

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

A distributor can specialize in a wide variety of different sectors, depending on local competition, resources and potential. In the way that become a distributor it is important to identify the target customer group and purchase the equipment needed to meet your needs. For example, a cold store and trucks should be owned by distributors who deal with perishable food items (dairy, meat or frozen).

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

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

As a distributor, you must have a reliable way of transporting materials. There are two options: purchase your own vehicle fleet, or use a courier service. For those who want become an official distributorIt 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 the maintenance of the equipment, but courier fees represent significant damage to the distributor. When you decide become an official distributor, it is important to be able to adjust as the business climate changes. Thus, distribution is the responsibility for the movement of goods from the manufacturer to the client.

By becoming a distributor, the firm is responsible for the safety of retail customers. The firm takes possession of the goods and is responsible for storing and distributing those goods to the retail store. In a typical agreement, a manufacturer sells its 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 sales is central to the job. There are several quality software products to assist in key business functions that help you become an Authorized Distributor.

We covered 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 about the profession of 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 how exactly he does his job. As you can see, this profession has many advantages.

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

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

Here's what you need to do 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 the desire to work, and at least an approximate understanding of the functioning of the market for goods and services that the company is targeting. 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 manufacturers directly and intermediary companies. For example, you can be a distributor of a specific Lipton tea, or a wholesale tea store, then you can distribute products from different companies.

In order to choose who to work for, it's just worth thinking about what things or services you could sell with the greatest pleasure.

Not sure how to become a company distributor? Follow our advice!

When you have chosen a company whose products or services you want to sell, you should first 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 as a last resort, you can write a letter directly to the company.

Usually the number of distributors is not limited, although there are situations when a firm assigns only one wholesale distributor for a specific area.

In any case, you can get through to this position, even if there are no open vacancies. To do this, you can write a letter to the company, or call the phone designated for contacts on cooperation issues. However, it is very important to prepare in order to be competitive. For this you need:

  • Get acquainted with the assortment of the company;
  • Get acquainted with the market and the current situation in the sale of the company's goods;
  • Develop several proposals for increasing the sales of 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, consequently, there is a large field of activity, considerable prospects open up.

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

  • choose a company first,
  • familiarize yourself with its assortment,
  • find out 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 ideally suited for the role of a distributor abroad, that is, in your region, and how you can help this company expand its sales market.

Step by step instructions on how to become a clothing distributor

If you like clothes, becoming a distributor for a manufacturing or selling company is a great solution. You can work on both wholesale and retail sales.

After you choose specific company, whose products you want to distribute, and get a job as a distributor, showing your familiarity with the market and competitiveness, you can start working as follows:

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

It is easiest to get a job as a distributor of food products, since there are a lot of food companies, and they constantly need to expand their sales market.

Follow this plan:

  • Find a suitable manufacturer or large wholesale store;
  • Check out the assortment;
  • Propose your candidacy for the role of distributor by preparing several interesting ideas relatively more efficient sales of products;
  • Find retail Storeswhere your product is not yet on display and convince them to distribute it;
  • Go through the establishments catering, offering to order exactly your grocery products.

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

Let's start with who a distributor is. Translated, this means "distribution". In reality, the distributor is entity, engaged in the sale of 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 in 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 specified 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 may 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. So you can learn 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 a 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 the 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 part of your income, additional earnings or basic. Recently, more and more girls and women who sell cosmetics have become 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.

 

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