Distribution as a full-fledged business. Distributor of a foreign company in Russia: how to start a business not from scratch Become an official distributor

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?

Distributor is an intermediate link between the manufacturer of a certain product and its final consumer, whose activity consists in the sale of goods in a certain territory. Distributors are the official representatives of the companies and are entitled to trademark or trademark protection.

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 change this system on their own, removing some elements.

The list of responsibilities of a distributor depends on the nature of the products sold. The sale of small lots 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, distributing 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 a dealer and a distributor are in many ways similar, but the latter makes a profit by buying a manufacturer's product at a discount and selling it at full price. The dealer's income is formed from the margin, which in a market economy is 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 have told, now we will find out how to become a distributor. To distribute the manufacturer's product with him, you need to conclude distribution agreement which results in certificate for the right of official representation of a trademark or commercial name. Distribution agreement - a legal agreement that specifies 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 illiquid assets, liability 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. A popular commercial name with an established production system may require the distributor to:

• 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);
• A staff of competent employees to fulfill the agreement.

To get status exclusive distributor of a foreign company additionally, you will need knowledge of the language of the manufacturing country, the ability to frequently fly / move to negotiate and solve other problems, as well as experience in distributing products and good performance in its implementation.

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

How to become a distributor?

Distribution - professional activities in the distribution of goods, for the implementation of which resources and knowledge are needed. It is extremely difficult to become a distributor without initial investment and a developed infrastructure for storing and transporting goods, especially 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.

“There is nothing more criminal than coming up with a great idea, but not implementing it,” says Donald Trump. If you dream of your own business (a beauty salon or something else), financial independence, nothing should stop you, even the lack of start-up capital for business development. When there are a lot of ideas for building your own project, and the financial situation is not the best, you can try to become a dealer.

What is a dealer?

A dealer is an agent of a manufacturing company who acts as an intermediary between the manufacturer of a certain product and a person or legal entity who wants to buy it.

In Russia and other countries, there are manufacturers who do not have their own sales offices and wish to sell their goods through dealer networks. Such cooperation is beneficial for such companies. They do not need to spend money on opening retail outlets. With minimal costs, they can quickly communicate their product information to a large circle of potential buyers.

Dealers are divided into several categories depending on the field of activity. There are intermediaries working on the stock exchange. They are participants in the securities market. Another type buys certain products in bulk and sells them to retail customers. There are representatives of large enterprises, for example, car holdings, which find buyers and receive a percentage of sales. If you decide to become a dealer, first of all decide what area you want to work in.

Becoming a dealer for a manufacturer is not just about representing the products of a certain company, it is being its regional face (for example, a manufacturing company). Dealer sales consist of the following stages:

• discussion of cooperation issues, current prices, percentage of sales, etc .;
• make a deal;
• sale of related products of the plant;
• provision of additional services (maintenance, installation, transportation from the factory).

Becoming an exclusive dealer of a manufacturer means getting the right to single-handedly represent a company in a certain region. This status gives privileges in partnership, as the representative gets rid of competitors, receives special financial conditions.

To become an intermediary is to take an intermediate place in the chain "producer - end consumer". Its main role is to find a buyer and complete a deal.

How to become a dealer of a manufacturer?

In order to become a dealer, you need to determine,. But the choice of a manufacturer is far from one criterion. In order to become an official representative of the plant, you need to prepare.

Qualities required to work as a dealer

Practice shows that not all people can become a dealer, as well as, and reveal themselves in the field of trade. Experts have identified a number of qualities that a person should have:

1. activity;
2. sociability;
3. the ability to negotiate, persuade;
4. stress resistance;
5. initiative;
6. competitiveness.

If you see the above qualities in yourself, you can try to realize yourself in this area and become a dealer.

Advice: when negotiating, you must "radiate confidence", since the main task in this activity is to convince that the offered products are of the highest quality.

If you are trying to establish cooperation with a representative of a store or other retail network, convince him that if you take the product for sale, it will literally be swept off the counter. To do this, you need to be persistent, be able to present the product, indicate its advantages and benefits for the buyer.

It's important to be prepared for rejection. Bad deals are an integral part of being a dealer. Here it is important not to get upset, analyze the mistakes made during the negotiations and move on, looking for buyers.

Required Documentation

To become a dealer of a manufacturer, you need to prepare a package of documents, since this business is serious and can bring a lot of money.

In most cases, large manufacturers require the following conditions to be met to sign a partnership agreement:

• you must be a legal entity;
• the presence of an office;
• conclusion of a mediation agreement.

For cooperation, you must also provide:

1. passport data;
2. charter (if you are a legal entity);
3. memorandum of association;
4. tax registration certificate;
5. certificate of state registration;
6. ownership or lease (sublease) agreement for non-residential premises where the place of sale will be organized;
7. Bank details.

The list of documents may differ depending on the requirements of the manufacturer. If you plan to work in the automotive business, you need to provide a permit to sell vehicles from the traffic police.

Description of activities

After signing an agreement on cooperation in a certain region, it is necessary to draw up a promotion strategy, a development concept.

At the first stage, analyze the market in the assigned territory, the level of demand and options for promoting products. Determine ways to optimize sales, how to interest a potential buyer. Do not disregard competitors, monitor their work.

After that, you need to try to form your client base. To do this, make a list of companies that may be interested in the product being sold. Before making an appointment with potential clients, inquire about them as much as possible, develop a negotiation technique. The wider the customer base, the higher the income level will be.

If you want to become a dealer from a prestigious company, a large factory, you need to overcome the competition from other job seekers. In order to have an advantage over them, you need to take into account a number of factors.

First, they pay attention to the experience in this area. Secondly, a lot depends on the region of placement. If a representative applicant wants to become a dealer in a city that is saturated with regional representatives of this company, he will most likely be turned down. If the manufacturer does not have a representative office in the specified area, he is more willing to agree to cooperate. The accumulated client base is especially appreciated. Also, the decision on partnership is influenced by:

• reputation;
• availability of a technical base, premises for work;
• the ability to attract qualified personnel;
• the possibility of warranty service.

How much money do you need to invest?

Investments are required to conduct intermediary activities. In order to become a dealer of a manufacturer, you do not need the same amount of capital as, for example, to build. But most often investments in the chosen project are needed.

It is difficult to name a certain amount, it all depends on the manufacturer's company. But if you manage to agree with the manufacturer on the receipt of goods for sale, you can avoid large investments. You will be able to pay after the sale of the product, but the price in this case will be higher than with a prepayment.

If you have the opportunity to pay for the goods immediately, then the amount of investment will largely depend on the type of product, the volume of the purchased batch. It is also worth including in the business plan the costs of transportation, rental of warehouses, office space, recruiting, legal and accounting services.

How to become a dealer without investment?

If you didn't manage to collect the start-up capital, you can become a dealer without investment. There are several ways to do this.

Sales of products to order

Perhaps, looking through the price lists for a certain product, you had to see the mark “On order” opposite the line “Price”. This means that first you need to deposit money into the specified account, after which it will be transferred for use. The algorithm for executing this scheme is as follows:

• the manufacturer signs a contract with the supplier for the supply of products at the dealer's price;
• products are put up for sale at the dealer's point of sale (not the product, but the name of the unit in the price list);
• the buyer makes an advance payment, which makes it possible to purchase goods from the manufacturer;
• the purchased item is sent to the buyer, who in turn deposits the rest of the money into the dealer's account.

The indicated scheme is suitable for goods of the middle price category. Each person will buy inexpensive products in the nearest store, albeit at an inflated price, but without waiting. For items that are too expensive, an office or store is needed. For example, car resellers rent large areas for showrooms.

Provision of goods for sale

Today, many manufacturers provide their goods for a certain period of time, during which the reseller must sell it. After the end of the agreed period, the products must be paid for, and 1-3% higher than if the dealer paid without installments. The possibility of return is prescribed in the contract. Most often, if the goods are not fully sold, the full price has to be paid, which increases the risk of financial losses for the intermediary.

Free testing

In some cases, the manufacturer agrees to send free samples of their products, which help to test them, present them to potential buyers. For an intermediary, such a scheme is extremely beneficial, but, unfortunately, today manufacturers rarely agree to work on it.

If the idea of ​​becoming a dealer doesn't suit you, consider

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 them at the lowest prices and with all kinds of discounts.

Similar conditions are beneficial for the manufacturer of products, which, in addition to increasing volumes, also receives a representation of its goods in a new region, while shifting the solution 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 resistance;
• - Purposefulness;
• - Competitiveness;
• - Activity;
• - Initiative.

This set of qualities will allow you to achieve success in your business and grow in your 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 the 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 it is “your” client that is waiting for you somewhere, 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.

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, so as 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 their methods of work.

Try to build your own customer base and lure customers away from your competitors. Using the Internet, make a list of companies that may be interested in your product, before making an appointment, try to make as many inquiries 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 strong enough motivator.

What are the criteria for choosing a dealer?

If you want to work with a large and serious company, you will have to withstand competition from other job seekers. In order to have an advantage over them, you need to know what companies look for 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 representative offices 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 you provided, 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.

Most 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 the receipt of 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 right away, 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 whereby the buyer makes a pre-order and prepayment to 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.

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 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.

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 a 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 distributor of your company? Follow our advice!

When you have chosen a company whose products or services you want to sell, you should first of all 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 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, considerable prospects open up.

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

• first choose a company,
• 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 must 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 company that manufactures or sells them is a great solution. You can work on both wholesale and retail sales.

After you choose a 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 according to the following scheme:

• 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 clothes, 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;
• Offer your candidacy for the role of a distributor, having prepared some interesting ideas for more effective sales of products;
• Find retail stores where your product is not yet represented and convince them to distribute it;
• Walk through catering establishments, offering to order exactly your grocery products.

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