How to become a distributor? Who is the distributor in fact?
Faced in the media or advertising with the term"Distributor", we can not always correctly understand its meaning. A distributor is a trader, but how and on what rights he conducts his activities is not clear to everyone. Let's try to understand who it is, and at the same time how to become a distributor.
Why does the manufacturer need a distributor?
The relationship between the distributor and the manufacturerare built on the natural desire in the modern economic conditions for the exporter to expand the sales market of his goods abroad, while reducing his expenses to a minimum.
The officialdistributor - intermediary. By the way, this term borrowed from the English language means "distributor", "one who distributes the goods". The distributor arrives in this way: when he purchases goods from his producer for his money, he distributes it in the regions on his own behalf.
But, by the way, it often has a reverseside - the producer starts economically (and in connection with the conclusion of the contract of commission - legally) to depend on how much this agent is conscientious, enterprising and, most importantly, whether he has the opportunities and the desire to provide profitable transactions.
How to become a distributor
If a company or company decidesto acquire the status of a distributor, it must first of all formalize an appropriate contract (the so-called "sales contract"). It can have both exclusive (giving the right to the sale of goods only this company), and non-exclusive nature.
Naturally, entering into these relations,the company in the rank of "official distributor" becomes not an ordinary reseller who acts as a wholesaler. She, as a rule, maintains long and close ties with the exporter and promotes and organizes the sale of his goods in a certain territory of the country, which is pre-assigned to it.
What you need to do to become a distributor
Answering the question about how to become an officialdistributor, we already mentioned, about the need to conclude a sales contract between the manufacturer and the vendor. But in order to do this, the company should first send an application to its selected company with a proposal for its implementation services.
In this appeal, as a rule, it is indicatedthe scope of the company offering itself for the role of a distributor, its mobility, turnover, coverage, number of customers and opportunities. Considerable attention should be given to the review of the market where the work will be carried out, as well as indicative information on the sales volumes of certain goods on it.
The purpose of this appeal is toto interest their future partners in the services offered, while showing their own awareness of the possibility of promoting the product and the ways it is advertised.
Competent establishment of contacts, as a rule, ends with business negotiations and signing of a distribution agreement.
The rights that a distributor has in the sales market
The exporter often provides the distributorthe exclusive right to sell, and voluntarily withdraws from this market, not only not entering into competition, but also in every way promoting the promotion of a certain product and its advertising.
In addition to these privileges, exclusivethe distributor receives from the exporter the right to use the trademark, the opportunity to organize the training of personnel and the after-sales service of the goods.
For greater clarity in the relationship"Distributor-producer" by the International Chamber of Commerce, a guide was issued to draft appropriate agreements. In it, among other things, some aspects of the activity of distributors are underlined:
- The producer loses the priority position in the territory where the distributor works;
- relations between them are concluded for a certain period of time;
- Cooperation can not be episodic;
- communication between manufacturer and distributortake a confidential nature, but the sale of finished products carries a limitation of freedom of action for the distributor, in particular, this is expressed in abstaining from competition.
Features of the agreement concluded between the manufacturer and the distributor
An exclusive distributor receives fromthe manufacturer has the exclusive right to sell and place certain goods agreed upon by the contract in a clearly defined territory. He undertakes to purchase these goods only from the exporter, with whom he enters into an agreement.
Exclusivity in the contract may concern boththe territory where the sales are made, and the names of goods or consumers. If there are no conditions of exclusivity, then an unlimited number of distributors may appear on the contract territory.
Features of the legal nature of the distribution agreement
The legal nature of the distribution agreement isorganizational nature. So, on the one hand, it is realized by the purchase by the distributor of contractual goods from the exporter, which is confirmed by separate purchase and sale agreements, and on the other hand - by selling them to the allotted territory of this commodity, which is also confirmed by the conclusion of separate sales contracts, but already with the consumer.
Therefore, as you can see, it is very important, beforebecome a distributor of the company, so that both sides of the transaction (exporter and distributor) have stable rules of interaction. They are coordinated in the form of general conditions of the sale process, and all of them are contained in the distribution agreement.
How the distributor's revenue is determined
Before becoming a distributor, of course,It should also be determined with the amount of remuneration (in commercial practice it is called "commission"). It is calculated as the difference between the prices for the purchase and the sale of goods.
And the right to receive commissions, ways of calculating them, the procedure and terms of their payment, as a rule, are determined in the agreement of the parties.
Types of distribution activities
To date, there are several types of distribution activities:
- General distributor. They are considered an intermediary, which organizes regional sales of products of a firm through its own network and on its own.
- A distributor with warehouses. It fulfills the function of storing goods, concluding contracts for their delivery in the future, and also providing services in sorting and selecting assortment groups of goods.
- A distributor who does not have warehouses, as a rule, participates in transit deliveries.
As you see, deciding to become a distributor of the company, you should also decide on which intermediary is most advantageous for your firm or company.
Can an individual act as a distributor?
Along with companies or distributorsIndividuals can also engage in activities. All they need is an understanding of the state of the market for goods or services to which the manufacturer is targeting.
First of all, it is necessary to understand which categoryof the population will be interested in this cosmetics, and then you can find shops, including virtual ones, that are aimed at this section of the population. After writing out all the advantages of this type of goods, you need to prepare its catalog and offer to the specified stores, explaining why it will be profitable to sell this particular makeup.
This advice, as you understand, applies to almost all types of goods.
Distributor of food: features of this type of activity
However, when choosing a sphere of activity, it is worthremember about their capabilities. After all, if you do not need special conditions to store purchased cosmetics or their remains, for example, for those who decide to sell food, they are often needed.
These are not only racks and containers forstorage, but also refrigeration. And this implies additional costs for their purchase, and then for electricity. After all, the food distributor must necessarily take care of the method and place of storage of the goods, otherwise it will lose its appearance, and the intermediary, respectively, the invested funds.
A few words about the profession distributor
As you probably already saw, the distributionactivity is a good option on a variety of scales - in the form of work on oneself, and as a means of building large distribution networks or businesses with huge turnover. Everyone can find in it their own, depending on the goals and opportunities available.
Earnings in this field of activity, regardless offrom who you are - a distributor of food, cars, hygiene or computer equipment, depends only on your business qualities, ability to promote the product in the sales market, to prove its advantages and interest the buyer.
So, try it, and you will succeed!