Archive for May 2018

Modern society is developing every day at a rapid pace, there are more and more new professions and terms. So, most recently known dealers and intermediaries were called traders. However, in the current market relations, the distinctions between different types of commodity distributors are clearly defined. Dealers and distributors – who is who, we will try to understand this article. Who is the dealer? The word “dealer” is of English origin and is translated as “agent, merchant”.

The dealer is a firm or an individual who buys products in bulk and sells it in small batches or at retail. Also to this group of traders are agents of the manufacturer or distributor-participant of transactions. Thus, the dealer takes the last place in the commodity exchange chain and is in direct relationship with the final buyer. This is the main answer to the frequently asked question – what is the difference between a dealer and a distributor. With the plan regarding Sephora – Sell to Sephora the results may be effective

Types of dealers

In the commercial sphere, there are two types of dealers: A retail dealer is a classic type of intermediary between a trading company and legal and physical persons wishing to purchase goods.

Exclusive dealer is an intermediary in the sale of the original rare goods in a certain region. He has the right to represent premium products and has the opportunity to gain unlimited profits. To better understand what a dealer differs from a distributor, we’ll look at their basic functions, rights and responsibilities.

  • What is the work of dealers Dealership activity consists in performing intermediary operations: purchase and sale of products manufactured by enterprises or sold by distributors and owners; representation of the interests of the manufacturer of the goods and their trademark in the market.
  • Cooperation between dealers and owners of products implies the conclusion of a contract that defines the rights and obligations of each party. But, in addition to the delivery and payment for the goods, dealers are required to adhere to certain principles. So, the mediator, in addition to the basic functions, has additional rights and certain responsibilities to the manufacturer. In other words, the dealer is fully responsible for his activities and if the terms of the contract are not fulfilled, he may lose his job.
  • So, if sales go bad, the agent does not actively promote the trade mark, and the owner of the goods does not realize the required number of products, the enterprise can refuse the services of such an intermediary. In this case, the dealership can be transferred to another merchant.

In order for the intermediary to be interested in sales, all manufacturing firms and distributors offer agents a percentage of the actual volume of the goods sold, in which the dealer differs from the distributor. Dealer rights Each dealer has the right: Call yourself the official representative of the manufacturer or distributor. Receive the goods in view of dealer discounts. He plays the role of reseller, so he buys products at special prices. For more you can visit to Retail distribution. Represent the trading interests of a manufacturing company in a particular region or among a specific range of customers. Get a loan from the manufacturer to develop its trading activities.

All entity (firm, company) that is the official representative of a certain manufacturer company is a fixed territory that performs wholesale purchase of the product and its subsequent sale in this territory through sellers, dealers or directly to buyers. In a few words – this one person or firm (small or large), who are intermediaries between the producer and sellers of the goods or consumers.

The distributor may be a subsidiary of the manufacturer (fully owned by the manufacturer, or he has a certain share in this company) and any other company or private entrepreneur who cooperate on a contractual basis with the manufacturer. The Ulta – Sell to Ulta plan is perfect here with the finest deals.

For the Distributors

Distributors can also provide marketing promotion services for the product and the brand on its territory, train dealers, conduct service, install and configure equipment (if it is a distributor of equipment, equipment). The main duties and requirements for the distributor are discussed and prescribed in the distribution agreement at the beginning of cooperation with the manufacturer. More details about the responsibilities of distributors will be discussed later in the article.

The main feature and difference between the distributor and other intermediaries is that he has the exclusive right to represent the manufacturer’s products in a certain region according to the rules agreed in advance (this applies to the price that the manufacturer can set). At a fixed price from the manufacturer, distributors earn a discount that they receive when buying goods, while the discount may not be fixed, but increases depending on the turnover of the distributor and other factors.

How the distributor works

First, let’s look at how in real life the product comes from the producer to the end user:

The manufacturer of the goods goes to the distributor to the dealer (the wholesale seller) to the retail seller (retailer) to the consumer (the buyer). This is one of the most common schemes of work, especially for large manufacturing companies. In this order, the manufacturer may have several distributors, who, in turn have several Wholesale distributor options.

Manufacturer of goods – distributor – retailer (retailer) – consumer (buyer).In this case, the distributors cooperate directly with the sellers and retailers of the goods.

The manufacturer of the goods – the distributor – the consumer (the buyer) . This scheme is most common in network marketing (MLM). Each buyer of the goods in a network company or simply a willing person can sign an official cooperation agreement (distribution agreement), buy a trial lot of goods or so-called sets for distributors and start selling any goods from the company’s catalogs in their region, while purchasing it in the company at a lower discount price.

For effective sales little to know all the functions of the service, you need to be a bit of an analyst. This will help quickly deal with the needs of the business, which wants to establish a call tracking and find common points for mutually beneficial cooperation.

Companies, most often, turn to us, but do not fully understand what their tool can give them. But they are well aware of what problem to solve. Our task is to understand everything and make a preliminary assessment of the prospects for cooperation. In order for work to bring pleasure and everything was “smooth” in the relationship with customers, it is important to speak with them in one language.

Its essence lies in the fact that both sides either lose, if they do not achieve the desired goals, or simultaneously win. The success of our customers – makes our service successful, just like that. At Sally Beauty Supply – Sell to Sally Beauty you will be able to find the best deal now.

Do not try to tell the customer everything you know about your product

It is necessary to inform the client of the important information for him, explain on the example of his business how the work that you are proposing will work. As a result, he should have a minimum of questions about how the interaction takes place and what results he should wait forand then sales will be more like a partnership. The client must understand that my task is not to sell at any cost, but to understand his need and solve his “pain.” The Convenience store distributor is the best option here.

Working with clients, you need to clearly outline the range of options available to them

Owners of small and medium-sized businesses often actively turn themselves, because they are looking for different opportunities for growth. We call them “warmed up”, as they are well acquainted with the product and they do not need to additionally motivate to experience call tracking.

On the one hand, there are few problems with small and medium business communication, but not always such customers (especially small businesses) benefit us. When the company subscribes to the minimum tariff, but requires a full cycle of services (including a variety of settings, adjustments, etc.). As a result, our costs for such customers are much higher than what they bring to us.

Transactions with large customers require preliminary, thorough preparation

It is quite a different situation when working with large customers. It is necessary to look long for ways to talk with the person making decisions in such a company. In order for the transaction to take place, you need careful preparation to bring the necessary and accurate arguments.

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