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.

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