Who is a distributor. Who is a distributor and why is such an assistant needed? Main functions of a distributor

Currently, there are many borrowed expressions in Russian, in particular from English. This trend is especially true for the sphere of economy and business: various phenomena come to us precisely from America and Europe, so it is not surprising that a recently appeared concept becomes sensational and gains popularity over the years. That term is "distributor". Previously, a person with such a profession or a company with such a line of activity was equal to something unearthly, but now anyone who wishes can become one.

Distributor - an intermediate link between the manufacturer and the consumer

Who is a distributor and what does he do?

The distributor is individual entrepreneur or entity engaged in large purchases of goods from the manufacturer for the purpose of further sale (through agents and other intermediaries or independently). The purpose of doing business is to provide the world with information about your manufacturing partner, presenting it in a favorable light, and then offering to get acquainted with its products through seminars, master classes, exhibitions, presentations.

It would seem that the profession is simple, but in it, like in any other, there are many "pitfalls" that are important to take into account. Firstly, it is the need for experience in working with people, the acquisition of communication skills and in some cases NLP (not our option). In fact, the distribution activity is very interesting, because it is directly related to the seller's ability to find a common language, constantly get to know someone and have a wide range of responsibilities.

Main functions of a distributor

The fulfillment of the duties of a representative of this profession begins from the moment the goods are purchased from the manufacturer (most often this is a foreign person). The fact is that the conclusion of an agreement with foreign companies is of sufficient interest for a new consumer market. Previously, many had no idea who a distributor is, what he does, but now this direction gain popularity.

Scheme of work

The principle of operation is quite simple:

1. Implementation of a large batch of purchases of goods from the manufacturer at a reduced price.
2. Sales of products through independent efforts, as well as networks of dealers, agents and other firms.
3. Opening companies in other countries, if necessary and if there is a financial opportunity.

Historical facts

In the 1990s, the then-unknown Invite powder began to be produced, and the manufacturer managed to bring the product to the consumer only due to the fact that she knew about the distribution activities. This scheme allowed the company to distribute products to the whole world and become the founder of the effectiveness of the distributor scheme.

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If a foreign company has an official distributor in Russia, this indicates an increase in its sales in the near future, since the Russian consumer market is huge. Success stories the owners have large companies and corporations, as well as cosmetic companies.

Documentation for distributor work

It is necessary to conclude a formal contract with the manufacturer of products, which clearly stipulates and provides for all the points and rules of sales. Distribution activity is a great opportunity to establish relations with large foreign firms, which has a good effect not only on the well-being of the participant and his customers, but also on the economy of the state as a whole.

Note: An importing company engaged in the independent sale of products in other countries is called a general distributor. An exclusive distributor is a person participating in a scheme in which the supplier cannot sell goods to third parties, and the distributor buys goods exclusively from this supplier.

All these aspects are stipulated in the drawn up contract - the distribution agreement. After passing the official procedures, the distributor receives from CEO supplier a certificate of the appropriate form, which indicates the type of intermediary organization.

How to become a distributor

Many compatriots are concerned about the question: how to become a distributor. This procedure is carried out in just a few steps, during which the person involved in the implementation receives a new status.

1. The choice of the manufacturer. At this stage, you need to prepare offer, which details data about the company, scope of work, mobility, etc. Provides an overview of the product market, estimated sales volumes, competitor analysis.
2. Organization of contact, for example, at one of the company exhibitions. After the connection is established, it is necessary to start correspondence with a proposal to negotiate. At this stage, a contract is concluded, and all formalities are settled.

Having dealt with this instruction, you will be able to reach your goal in a short time.

Upon completion of all formal procedures, the distributor receives a certificate

Distribution scheme options:

1. Purchase from the manufacturer at a discount and provide the latter with promotional materials free of charge.
2. Establishment of an enterprise with equity participation of several persons. Both of these options are popular today.

Distribution Benefits:

1. The possibility of obtaining an unlimited level of income. It all depends on how well established the supply chain and sales system.
2. Availability a large number free time. For women, this is most relevant, because, in this way, they will be able to pay more attention to their family.
3. Remote employment. There is an opinion that a distributor is a person who takes a large checkered bag and goes to visit all his friends, trying to sell a product. In fact, due to the development modern technologies, many workers conduct activities on the Internet.

Good day! The question of who are distributors and who is a dealer is one of the most common among people who are considered new to the business. At first glance, these two concepts practically do not differ from each other, but in fact there is a difference, and it is striking.

In order not to get confused in terms, let's try to understand what is the main difference between what is called a dealer and a person called a distributor, and also consider what responsibilities each of these categories of people working in the business world has.

The concept of "dealership" and "distribution" and their main differences

To begin with, let's deal with the question of who a distributor is.

A distributor is a company that distributes the products of the corporation with which it works. Only after that the goods are resold to the company, which is a dealer.

A distributor can be either one person or a large company, so let's figure out what a distribution company is. It's relative large organization, which has a large staff and, as a rule, is engaged in bulk wholesale purchases of goods directly from the manufacturer.

Distribution companies are usually divided into the following groups:

1. Distributors providing their customers with a full range of trading services.
2. DFs that have a limited list of services provided.

Distribution of products occurs in two ways:

1. Direct deliveries of goods to the company-realizer.
2. Work in network marketing.

Understanding what distribution is in trade, and what role it plays in this area of ​​business, we can conclude that:

• distributors can independently act and make specific decisions in a particular market;
• they are in the area financial risk, therefore, must act with extreme caution and accuracy;
• in the case of granting a loan to business partners, the intermediary is responsible for the possible risks of financial losses;
• the distributor has the right to independently regulate the price category, as well as organize discount programs, promotions, sales. It can also set deadlines for the sale of certain groups of goods.

Who are the dealers?

A dealer is an intermediary who acts as a repurchase in the trading system. This means that when buying products from a distributor, the dealer then resells them either wholesale or retail.

Having dealt with the question of what a dealer and distributor are, it is important to understand what is the difference between these two terms.

Whoever is engaged in the purchase of certain goods with a view to their further sale, both firms necessarily deal with wholesale trade. However, the difference between a dealer and a distributor is that he only buys the product without having direct contact with its manufacturer. At the same time, a dealer company may have several branches scattered not only throughout the country, but throughout the world, and therefore the distributor with whom the contract was concluded has much more responsibility and obligations.

Difference in concepts

What is the difference between a dealer and a distributor? There are 4 main differences here:

1. The difference between a dealer and a distributor is that the second one works for a company engaged in the production of goods, and therefore is obliged to act strictly on its behalf and obey the prescribed charter. In particular, the established rules also apply to the issue of prices, so the distributor cannot make independent decisions on this matter.
2. The dealership is independent enterprise, which acts solely on its own behalf, buying goods with the help of a distributor for its own money. Upon receipt of the purchased product, the dealer may sell it at the prices that he has the right to establish at his own discretion.

In some cases, the difference between a distributor and a dealer can be quite thin, so many people who are not versed in the conduct of trade and everything connected with it confuse the two concepts. However, sometimes work as a distributor can be directly intertwined with dealership. In what cases is this possible? Let's figure it out.

Before concluding an agreement between an intermediary and a manufacturer, all the nuances, as well as conditions joint work carefully discussed and then fixed in the contract. In some cases, the distributor may act as a dealer, buying goods for his own money. With such a development of events, the buyer is no longer an intermediary, and can sell the purchased goods at a price that he sets himself. Or do with the acquisition what he sees fit.

Two other differences between these concepts are presented below:

1. A distribution company is an enterprise engaged in the creation and development of a network specializing in the sale of products. In addition, her responsibilities include the promotion and promotion of the brand that she represents. So, the representative of the company is the same distributor.
2. Dealership is a business area, the main task of which is the delivery of goods directly to the consumer, that is, its successful implementation.

It should be noted that the distribution network is not required to work exclusively for one manufacturer. She has the right to choose partners, and may well represent the interests of several firms at once. At the same time, dealers have the right to hire several distributors to purchase necessary products. Thus, the owners of outlets have the opportunity to sell different types goods, from food to household chemicals. In this case, each intermediary will be engaged in the delivery of products belonging to a particular category.

Having dealt with the topic of differences between a dealer and a distributor, it is necessary to dwell in more detail on the specifics of the work of each of these parties.

Types of distributors and dealers. Their duties and functions

Distribution is one of the key areas in trade, so people working in this area must be competent and have a steely character. At the same time, their duties to the dealer include:

• providing a detailed report on the results of transactions (purchase and sale of goods);
• timely submission of information to a business partner about the state of the sales market, the activities of competing firms, any changes pricing policy etc.;
• drafting detailed plan sales of purchased products;
• development of characteristics of clients with whom the intermediary cooperates;
• providing a business partner (one or more) with all the necessary information about their activities for a certain period of time (the so-called reporting period).

In this case, the type of distribution does not matter - absolutely all distributors are required to comply with these rules.

Types of distributors can be very diverse:

1. General distributors involved in importing products to other countries on their own or with the help of dealers ( dealer network- this is one of the most effective sales, however, for security reasons, its choice should be taken very seriously and responsibly).
2. An exclusive distributor is a company that has the right to cooperate exclusively with one manufacturer. In turn, the manufacturer cannot enter into a cooperation agreement with anyone other than this distribution company.

There is also such a thing as a regional representative. If the question of who the dealers and distributors are and what they do was fully disclosed, then this position has not yet been mentioned. But many people who are just taking their first steps in the field of trade, or intend to infiltrate it, may misunderstand the meaning of the term and get into an awkward position. Therefore, let's dwell on this issue in more detail.

A regional representative is a person who is a rank above a regular distributor. In other words, his responsibilities include:

• promotion, that is, advertising promotion of the products of the company whose interests he represents;
• organization of promotions, auctions, sales;
• work with distributors, etc.

However, this profession is not as simple as it seems, and the regional representative has many more responsibilities than you might think. So, his efforts should be directed to the organization of work not in one particular city, and sometimes not even in the region, but in the whole region. What is the scale of this region, decides the company that has concluded a labor contract with a regional representative. Sometimes it can even be a whole federal district, so the time and effort to work such a member trade must spend a lot.

Dealer types

Having dealt with the concept of who a dealer is in trading, it is important to understand the classification this term. Like distributors, dealers are also divided into 2 groups, in particular, the following:

1. Exclusive dealers are companies engaged in cooperation and marketing of products of only one manufacturing company. However, do not confuse them with branded stores or outlets are completely different concepts.
2. What is a franchise dealer and what does he do? Such companies are called authorized dealers. They have the right to sell the products of one or several manufacturers at once, however, they are responsible for the quality of the goods sold only to the consumer.

On top of all of the above, it is worth noting that the relationship in the trading market plays a huge role, both for the distributor and for the dealer. That is why almost all their actions are regulated by an agreement, the violation of which can result in a serious financial collapse for someone who has crossed the established rules.

(distribution channel), which specializes in bringing goods or services offered by manufacturers to consumers.

Business. Dictionary. - M.: "INFRA-M", Publishing house "Ves Mir". Graham Bets, Barry Brindley, S. Williams et al. Osadchaya I.M.. 1998 .

Distributor English. distributor - distribution

a legal or natural person that conducts the purchase and wholesale consignments of goods of a certain range, most often imported, in regional markets. D. buys goods from a seller or manufacturer at his own expense and then sells them to the buyer. D. can provide marketing services, as well as installation and commissioning of equipment, training in its use. A possible spelling of the term is distributor.

Dictionary of business terms. Akademik.ru. 2001 .

Synonyms:

See what "Distributor" is in other dictionaries:

Distributor … Spelling Dictionary

Big Encyclopedic Dictionary

An apparatus in a bank for the automatic issuance of money from a customer's account. Dictionary of financial terms ... Financial vocabulary

- [English] distributor distributor] economical 1) A FIRM that sells products on the basis of bulk purchases from large industrial manufacturing firms: has its own warehouses, represents the manufacturer on the market; 2) a person or ... ... Dictionary of foreign words of the Russian language

- (from the English distribution distribution) a company, an entrepreneur engaged in the wholesale purchase and sale of goods of a certain type in regional markets. Typically, distributors have the pre-emptive right and ability to purchase and sell… … Economic dictionary

- (from the English distribute to distribute) in marketing (especially international) a company that performs the functions of a reseller in organizing the distribution of goods for the manufacturer of goods. The distributor can be either a subsidiary of the manufacturer, or ... Political science. Dictionary.

distributor- An independent wholesale intermediary engaged in the activity of purchasing products for the purpose of selling them to retailers and shops, as well as industrial enterprises, cooperatives, workshops for final consumption. [JSC RAO "UES ... ... Technical Translator's Handbook

- (English distributor) wholesale organization which sells goods purchased under an agreement with a certain manufacturer on a long-term basis. D. purchases and sells goods on his own behalf and at his own expense. Sometimes D. provides ... ... Law Dictionary

- (English distributor), distributor (commercial intermediary), a link between producers and consumers of goods and services. Distributors can be supermarkets, wholesalers, dealers, brokers, etc… Modern Encyclopedia

Ex., number of synonyms: 3 distributor (3) intermediary (33) distributor (33) ... Synonym dictionary

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In this post, I will tell you who is a distributor, what is the specificity of distribution activities, and I will also dwell on how to become a distributor and build your business on it. Surely many of you have heard phrases like “official distributor”, “cosmetics distributor”, etc. in advertising, and after reading this article, you will have a complete understanding of what is meant by this.

Who is a distributor?

So, the very concept of “distributor” is borrowed from of English language(distributor) and in exact translation means "distributor", and in literary - "distributor".

A distributor is a legal or individual, which is the official representative of the manufacturer's company and performs the functions of distributing goods from the manufacturer to wholesalers or retailers - dealers and retailers or to end consumers. In fact, the distributor acts as an intermediary between the manufacturer and the seller of the goods, and in some cases even between the manufacturer and the buyer directly.

The distributor can act as huge company with regular millions of turnovers, and an individual, from time to time distributing the products of a certain company.

The main feature that distinguishes a distributor from other intermediaries is that he has the exclusive right to represent the manufacturer's products and distribute products at a price set by the manufacturer without any extra charges. The distributor's income is a discount on the purchase of goods, which is set for him by the manufacturer.

You can make several chains of goods passing from the manufacturer to the buyer. The most commonly used scheme is:

Moreover, there can be several dealers in it (large and small). This option is also possible:

Or the option of direct sales, used, for example, in:

The difference between a distributor and a dealer.

A distributor differs from a dealer in that it acts on behalf of a manufacturing company and receives goods for sale in accordance with strictly agreed rules (including those relating to the price of goods), while a dealer acts on its own behalf, purchases goods for own funds and independently sets the desired level of trade margin for further resale.

At the same time, it should be noted that this difference is rather conditional, and more precisely, the functions, rights and obligations of a distributor or dealer are stipulated in the contracts concluded with them. For example, it happens that distributors purchase goods from the manufacturer at their own expense, just like dealers.

The main function of the distributor is not the final sale of the product, but the creation and development of its distribution network, the promotion and promotion of the trade brand, while the dealer is responsible for the direct delivery and sale of goods to end consumers.

One manufacturer can work with many distributors, and one distributor can work with many manufacturers.

It often happens that the founders of distribution companies are the manufacturing companies themselves. In addition, they can provide certain intermediaries with “VIP statuses” that provide extended rights: official distributor, exclusive distributor, etc.

How does a distributor work?

All the work of the distributor comes down to expanding the sales network and promoting the brand of the product of the manufacturer. He independently searches for dealers, retailers or end users of products (depending on the situation), then sends the manufacturer an order for the required batch of goods, receives this product for sale at a fixed price or buys it at a discount, sells and gives the proceeds to the manufacturer minus his commission.

Most often, only large distribution companies are allowed to take goods for sale, and small ones, as a rule, have to purchase products at their own expense, or at the expense of funds collected from customers (as, for example, happens in network marketing).

Now that you've got some idea of ​​what a distributor is, let's look at how to become a distributor.

To become a distributor of certain products, you must sign an agreement with the manufacturer, which is usually called a “distributor agreement”. The distribution agreement specifies all the rights and obligations of the manufacturer and distributor, the conditions for the transfer and acceptance of goods, and other working points. At the same time, it is issued distributor certificate with the seal of the manufacturer and the signature of the general director, who confirms the rights to the official presentation of the company's products.

Each manufacturer is always interested in having as many distributors as possible, because they are working to promote its product and expand the sales market. But not every distributor will be able to offer the most favorable terms of cooperation.

Very often, the distributor's commission income and the conditions for the transfer of goods (for sale or prepayment) depend on the volume of sales that the distributor provides: the larger they are, the softer the conditions and the higher the income, and vice versa. Therefore, it is likely that you will first have to work for your own name, show good results, which will then definitely work for you.

It is possible to work simultaneously with several manufacturers, perhaps this will affect the increase in turnover, and therefore income, but this is not necessarily the case. Sometimes large-scale cooperation with one large manufacturer and representation of only its interests is more beneficial for the distributor.

For people who don't have much initial capital and opportunities to open a distribution business, you can consider how to become a distributor from scratch. To do this, you can start “from the bottom”: get a job in a distribution company, start with lower positions, for example, with a sales agent, then, showing good work results, move up the career ladder to a supervisor, regional representative. At the same time, set aside the income received for opening own business. So you can collect some, and, importantly, gain experience in a distribution company.

If you want to engage in distribution activities on a more or less large scale, you will need to incur significant costs:

– rent warehouses and equipment for storage of goods;

- purchase or rent freight transport for transportation;

In other words, it will require well-thought-out and voluminous sources of funding.

The good thing about the distribution business is that there is a place for both very large and very small distributors, and there is always room for development.

How to find manufacturers for cooperation?

If you are thinking about how to become a distributor, the first thing you need to decide is the products of which companies you would like to represent on the market. Manufacturers can be searched in different ways:

1. Through business directories. Looking through the catalogs of manufacturers of certain products, you can directly contact those that interest you and learn from them the terms of cooperation, opting for those companies where the conditions will be optimal for you.

2. Through the Internet. Just by typing in the search “looking for distributors” or “search for distributors”, you will be taken to many pages of companies wishing to build and develop their distribution networks. Choose the ones that interest you the most and go for it.

How to find dealers, sellers and buyers for cooperation?

The second important issue that needs to be considered before becoming a distributor is the search for ways to sell the goods. Here, too, you can act in a variety of ways:

– Through company directories;

- Through direct contact with retail outlets sales;

– Through your own website or online store;

– Through colleagues, acquaintances, relatives;

– Through advertisements in print media, etc.

Now you know what a distributor is and how to become a distributor. Let's summarize.

Distribution activity is good option at a variety of scales: from working for yourself to generate additional income to building the largest distribution networks and businesses with millions of turnovers. Everyone will be able to find something of their own in it, based on the initial capabilities and goals set. A distributor's earnings largely depend on his sales skills and diligence. Therefore, go for it, and you will certainly be able to achieve good success in this business!

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