Who is a dealer. Why becoming a dealer is a great start for aspiring entrepreneurs. Is it possible to become a dealer without investment. Where to look for employers.
A dealer is a natural or legal person who carries out retail trade in goods purchased in bulk from a manufacturer or distributor. Selling a finished product is the most common business in the world. It requires small investments, usually paying off in a short time. Many successful businessmen today with large capitals began by representing the interests of another large company. Therefore, aspiring entrepreneurs are wondering what needs to be done to become a dealer.
What to do to become a dealer
It's not that hard to get started. If you decide to try yourself in this area, answer the questions:
- What product will you be selling?
- Where will you get this product?
- What trading method will you use to sell the product (sales outlet on the market, pavilion, warehouse, online store)?
- How much money are you willing and able to invest?
- Who will you be selling my product to?
- What form of cooperation with a manufacturer or supplier are you interested in?
After you have roughly decided on the product, the form of cooperation with the employing company and the method of implementation, you can start looking for a company that suits your wishes.
Finding an employer
Companies are interested in selling their goods through dealers, as this takes less money and resources than creating their own retail network. There are many proposals for cooperation, so in most cases there are no problems with finding and choosing a company-employer. It is more difficult to convince company representatives that it is you who will sell their goods. Often a company producing a product has a list of ready-made requirements for its dealer. They include the experience of successfully selling various goods in retail chains. However, if you are convincing at the interview and show yourself as an adequate partner, then, quite possibly, your candidacy will suit the manufacturer.
Moreover, not all companies choose their dealers. Many manufacturers sell a trial batch of goods to everyone, and the better the dealer sells units of goods, the more discounts and bonuses he receives.
Registering activities
In order to carry out trading activities, it is necessary to register with the tax authorities. Most start-up entrepreneurs register as individual entrepreneurs, as it is easier. However, it should be remembered that both the registration of an individual entrepreneur and the registration of a legal entity have their advantages and disadvantages. To summarize, an individual (IP) is personally liable for his debt obligations with personal property, and also cannot share a share in the business with his partner. There are much more requirements for a legal entity (for example, the presence of an authorized capital, a complex system for withdrawing profits, etc.), but at the same time they are taken more seriously and cooperate more willingly. In addition, when creating a legal entity, you can divide the shares of the business between partners.
If you want to be a dealer, the business registration form must be discussed with the partner. But in most cases, you will be enough to issue an IP.
Dealer certificate - a document that confirms your right to sell products of a certain manufacturer, and also serves as a quality guarantee from the supplier company for the end user
We are looking for customers to sell goods
The most important part of any business is the customers. Therefore, finding and attracting buyers should be given a lot of attention. If you are selling goods from a well-known manufacturer, then for successful sales it is important to choose a good location for the store or properly set up SEO when it comes to online sales. If the product is not so famous, then it is worth investing in its promotion. Therefore, immediately ask yourself the question: can I convince the buyer that he needs the product? How will I do it?
Many successful small reselling businesses started with the fact that the entrepreneur had customers. My friend has her own orthopedic pillow store. She started her business not by searching for suppliers, not by registering an individual entrepreneur, and not by opening a store. She made a joint purchase for her large family at a wholesale price from a warehouse, but in the end, due to the move, she was forced to sell pillows. The price in the advertisement for the sale of a friend wrote not wholesale, but retail. The pillows sold surprisingly quickly, and she was glad that she got rid of them so easily and even at a profit. As a result, they began to recommend her to friends as a person from whom you can buy high-quality pillows, calls and messages rained down on her. After that, she decided to buy another batch of pillows for sale, and about six months later she opened her own retail warehouse store.
Warehouse store is a fairly common business format for novice dealers.
How much money to invest
Dealers, especially beginners, often wonder how much to invest in a business and what exactly to invest in, as well as whether it is possible to become a dealer without investment.
In any case, you will have to invest. But the amount of investment will depend on your ability to negotiate with the supplier and the conditions on which you cooperate. By saving on some points, you can minimize investments, respectively, reducing risks.
To understand what you can save on, consider where the dealer invests:
- for the purchase of goods (direct payment for the goods);
- for the storage and transportation of goods (rent of a warehouse, trading floor, payment for cooperation with a transport company);
- advertising and sales costs.
If you are good at negotiating, it makes sense to save on the first point by agreeing with the supplier to purchase goods for sale. That is, first you sell the product, and only then pay for it. But this option has its own risks, and is also less profitable, since the price for goods for sale is usually higher.
Large suppliers often help their dealers in market promotion, advertising and marketing, providing their own experience, but the organization of promotions is usually undertaken by the dealer.
If you want to try yourself as a dealer, but are not yet ready to invest your own funds, you can try the “demo version” of this activity by working as a regional hired employee (for example, a sales representative) of the company whose products you are interested in promoting. So you will gain the experience necessary to start and, if it is successful, you will earn money without your own investments. But the income with this method of earning will be significantly lower, as well as the risks.
Where can a dealer look for employers?
Nowadays, it is very easy to find a supplier or employer. There are many resources on the Internet for finding partners. The most famous of them are:
- "Manufacturers of Russia" - on this site, all Russian manufacturers can leave an application to search for their dealer, and dealers can find an application and contact the supplier. All products are conveniently divided into categories, which greatly facilitates the search for the necessary and interesting.
- "Suppliers.ru" - this resource was created to ensure communication between suppliers and buyers. Here you can also easily find the product and supplier you need. Moreover, it can be both a manufacturer and a distributor (a person who buys goods in bulk from a manufacturer and sells them in smaller batches to dealers).
- "I am a Dealer" is not only an extensive catalog of dealer offers, but also informational assistance to novice dealers, here you can read the latest news in the business world, as well as find a lot of useful information.
Using these and other resources, study the market offers and choose the partners you are interested in.
How to become a successful dealer
To become a successful dealer, you need to constantly develop yourself and your business. This includes an increase in client flow, and an improvement in business design, and the development of personal qualities, and the search for more qualified personnel.
Sell your in-demand product
In order to successfully sell a product, it needs to be in demand. If you try to sell sleds in Thailand, then most likely, no matter how talented a seller you are, you are unlikely to succeed in this enterprise. The time when you could sell anything is long gone. People are wary of new offers and products, as well as intrusive advertising.
Form your client base and constantly expand it
A dense flow of customers ensures good profits and the success of the dealership. Therefore, it is important to form and maintain a customer base. For this you need:
- Analyze the market. Where do your clients spend their time? What are they buying? What need will your product satisfy?
- Gather customer contacts. To offer a product to a buyer, it is important to know how to contact him. There are different ways to collect contact information about your potential client. These are both online databases that are collected by parsing (if the sale is carried out on social networks), and offline databases for working over the phone. If you plan to sell goods through a store, you can issue accumulative cards to customers with their contact details, so that later they can inform you about discounts and bonuses.
Value loyal customers
It is important to recognize regular customers by sight, provide them with bonuses and create loyalty programs. If customers see your good attitude towards them and a unique approach, they will return to you again and again, and also recommend to their friends, which will ensure constant sales and even expand the base due to positive reviews.
Create a positive image
To sell your product or someone else's product well, it is important to make a positive impression on people. This is a disposing appearance, and a manner of communication, and the ability to negotiate, respectfully treating the interlocutor and showing moderate perseverance in presenting their ideas. It is important to be able to convey information not only verbally, but also non-verbally. Gestures, voice, manner of communication, look can also affect the impression of you and, accordingly, the decision to cooperate. Therefore, you need to create an image of a successful and knowledgeable person who can be trusted.
Share with friends!Modern man increasingly wants to become independent from the state and seeks to work for himself. Starting your own business is not an easy task, in addition to collecting the necessary information and documentation, you must have initial capital. However, not everyone has the opportunity to collect the required amount of money, in this case, you can become an official dealer. Many do not know this concept, but abroad it is a common phenomenon. Let's try to figure out what the word "dealer" means and why it is more preferable to work in this direction than to open your own business?
Who is a dealer?
Dealer types
- a dealer who is a participant in the securities market;
- a dealer who buys wholesale and sells products at retail;
- a dealer who is a company representative who finds customers and receives a profit for this.
Dealer terms and conditions
To become a dealer , as a rule, it is necessary to have a stable financial position. If the candidate meets the following requirements, then he has the opportunity to be accepted into the team:
- Preference is given to candidates with experience in the company's field of activity.
- The dealer must have a business plan.
- The representative must be interested in the services/products of the company and be result-oriented.
- The dealer must have the necessary equipment.
- The dealer must be able to invest in procurement/construction.
The company is interested in promoting its product in different regions, therefore, if a dealer network is already developed in the city of your choice, then you can get a refusal. The way out is to look for a new manufacturing company or move to a region that is not occupied for activity.
Documents required to work as a dealer
You can become a manufacturer's dealer if you have certain documents. For a legal entity, this is:
- Charter.
- If available, memorandum of association.
- Certificate of state and tax registration.
- A document certifying the authority of the head.
- Rental agreement for premises, if applicable.
- If there is a contract with a sub-dealer.
- Leader's passport.
- Bank details.
If the dealer is registered as an individual entrepreneur, then it is only necessary to have a certificate of IP and TIN.
Benefits of being a dealer
Working as a dealer has a lot of advantages compared to starting a business on your own, the main one being getting an already advertised product. This means that there is no need to spend money and time on brand promotion and promotion of a new product to the masses, this has already been done by the parent partner company.
Another important reason to become a reseller is the ability to choose the product you will work with. If you have an attraction to sports products, then there will be no desire to deal with food products and vice versa. The main component of business success is the desire to engage in it, and not the need to make money.
To become a dealer, you do not need to spend money on training, the company offers it for free. This is a great chance to learn from a firm that has established itself in the market. The manufacturer, as a rule, teaches his dealers the basics of successful sales, marketing, after-sales service - in a word, he helps to establish all the processes that are necessary for the sale of goods. This is a significant plus, since achieving the results of a large company on its own is very problematic, and it can take years. Various seminars, trainings, trips to other regions to learn new methods of work and other events often take place, because the manufacturer is interested in the quality of the work of its dealers.
Also, the advantages of dealership include the possibility of selling goods at selling prices, which will be supplied by a parent company. Thanks to this, there is no need to search for points of purchase of the necessary goods.
Becoming a factory dealer means gaining the experience of a company that has been acquired over the years. This can help in the future to open your own company, a new brand.
Many companies specifically resort to cooperation with dealers, because in this way it is possible, without spending a budget, to promote goods to completely different regions of the country.
Where to find companies for cooperation?
The desire to become a dealer is still not enough, for this it is also necessary to find a company for cooperation. There are two options here.
You can register on job search sites, post your resume with a proposal for cooperation and wait for a response from companies or send responses to their vacancies.
The other most productive option is to look for companies on your own. First you need to decide in which area you want to become a dealer, study all the pros and cons of the chosen direction, find the manufacturer and go to his website. 90% of success is the choice of a supplier company, so you need to pay close attention to the choice.
Business- this is a fairly broad concept, which is why almost every person can be realized in entrepreneurial activity.
If you do not have much money to start your own business, it is worth exploring the issue, how to become a dealer to earn money by representing a large company in the market.
Entering this business is not so easy due to serious competition, but if you meet all the requirements of the employer, you will get a good source of income for a long period.
How to become a dealer and what is it?
If you are interested in the profession of a dealer, then for a start it would be nice to understand what dealership is, so as not to make serious mistakes at the stage of work.
You must really assess your strengths and abilities before coming into this business!
Who is a dealer and what does he do?
From the English word dealer (dealer) is translated as a merchant.
This is a fairly broad concept, therefore, dealers are also called securities traders (currency pairs) on international markets, and an official sales representative of a large company, and an entrepreneur, and even a croupier who plays the game.
Most real chance to become a dealer- start cooperating with some large company (international or domestic), selling its goods in your hometown.
As a dealer, you will perform a variety of duties:
- Promote the product in your home region.
- Provide customers with all information about the product and the manufacturing company.
- Build relationships with representatives of different industries for better market coverage.
- Convince customers to buy products from the company you represent.
- Achieve sales targets and bring profit to the company you work for.
- Follow the latest products.
- Organize exhibitions and other events that will help sell more goods, etc.
We will talk, first of all, about dealership, as about the official representation of a large company. This is actually the same business, only with a number of special advantages.
If you decide to become a dealer:
- you will be able to significantly save on the advertising campaign, as it is taken over by the conglomerate that you represent;
- you will not have to hire a lot of employees with whom you will have to share part of the profits, you can handle this work on your own;
- get the opportunity to organize your network in almost any region if you sell a quality product.
In general, we can safely say that this work is promising and profitable, unless, of course, you have the necessary character traits in order to become a dealer.
What qualities must a dealer have to become a representative of a large company?
No matter how attractive this job may seem to you, you should remember that not everyone can become a dealer.
Looking for sales representatives, companies (especially when it comes to international corporations with billions of dollars in turnover) put forward a number of requirements for applicants.
Conditions that must be met to become an official dealer:
- Be official to have more opportunities to promote the product.
- Financial stability and success of the entrepreneur - losers and near-bankrupts have very little chance of becoming a dealer.
- Have work experience in the field of business - they conclude a cooperation agreement with young companies less often than with those that have their own history.
- Have a "clean" reputation - if you have been seen in a number of semi-legal transactions or are not distinguished by honesty in doing business, an employer with a worldwide reputation will not want to have such a representative.
- Know what the corporation you want to represent does.
- Offer some ideas about how exactly you are going to market the product.
- Have the necessary technical base and infrastructure facilities (not all companies require this).
- Be ready to invest your money if required.
- Possess a number of necessary qualities, for example, the gift of persuasion, charm, punctuality, responsibility, initiative, etc.
- Constantly grow and develop, have the ability to learn - many large companies constantly conduct courses and trainings for their dealers, the presence of which is mandatory.
As you can see, there are many requirements, but they cannot be called too complicated.
If you are an experienced entrepreneur with a stable financial situation, then you are unlikely to be denied the desire to become an official dealer.
How to become an official dealer and make good money on it?
Large companies became such because they constantly expanded and conquered an increasing part of the market.
One way to do this is to hire a number of sales representatives who would distribute the goods in the regions.
If you like this type of activity, then you need to think about becoming an official dealer.
What documents are needed to become an official dealer?
Before you go to an interview in the hope of becoming a dealer, put all your documentation in order: the company's constituent documents, existing contracts, and so on.
If the interview goes well and you are hired as a representative, you will be required to present a number of documents.
Each company has its own requirements for documents, but in most cases the list looks like this:
Some of the papers will have to be notarized, but the future employer will tell you in more detail about which package of documents and in what form you need to present.
Serious companies issue certificates to all their official dealers.
You will present this certificate when offering this or that store / salon to take some goods for sale or for use.
This certificate does not have a single sample - the company itself is engaged in its design. The document may look different:
Where can a dealer look for employers?
The easiest way to become an official dealer is to look for vacancies on the Internet.
This can be done using the following resources:
- https://www.businesspartner.ru/poisk-dilera-optovika.html
- https://www.proizvoditeli-rossii.ru/ishhu-dilera
- https://dealeram.ru
- https://www.postavshhiki.ru/ishchu-dilera
Choose the offers that you are interested in, write a good resume and send it to the specified addresses.
You can do otherwise: for example, you have and would like to become an official dealer in this company https://www.benata.ru/dealer.html in your region.
So, send your resume to a specific address, and you will look for other options if you are refused here.
You, as a dealer, will be offered two options for cooperation:
Working capital.
Roughly speaking, you will have to meet some kind of minimum sales and profit target.
With dealers that do not cope with the task, they usually terminate the contract.
Legal content.
You will become not just an official certified representative in some region.
You will become a person who must form his dealer network to promote the product.
If your resume is of interest to a future employer, you will be called for an interview (by the way, it can also be done via Skype if the main office is far from you).
How well you pass the interview will determine whether you get the job or not.
Your chances of becoming a dealer will increase if you:
- Be aware of the company's affairs, its product, turnover.
- Suggest specific steps for your dealership.
- Demonstrate confidence and the ability to convince the interlocutor.
- You will look presentable, as befits a dealer of a serious corporation.
- Show how exactly you differ from other candidates for the better.
How to become a successful dealer?
If you do everything right, you can easily become the official representative of a corporation that is pleasant and profitable to work with.
But it depends on your successful work how long you stay in this business and how much you can earn.
Here are some tips for those who want to become a successful dealer:
- Choose the right person for whom you want to work - sometimes the problem is not with the dealer, but with his employer.
- The product that you sell should not be too expensive, but at the same time be of good quality.
- Choose products that are in demand for dealerships, the demand for too exotic goods will not be great, which means that you will not earn much.
- Build your customer base and constantly strive to expand it.
- Appreciate your regular customers, who give you most of the profits, offer them small bonuses and benefits.
- A successful dealer looks good, smells good, speaks well, smiles radiantly, and people like him.
- Be moderately persistent when interviewing potential clients - without it, you will be able to close profitable deals.
And it is also very important to constantly learn and polish your skills, because without this you are unlikely to be able to achieve great success in dealership.
Is it possible to become a dealer without investment?
If you want to become a major regional dealer, then get ready for the fact that you will have to invest a fairly large amount of money, which will go to:
- purchase of goods;
- payment for storage facilities;
- staff salaries, etc.
In this case, investments will amount to hundreds of thousands of rubles, and no one will give you a guarantee that you will recoup these investments, and even in a short time.
But do not get upset ahead of time, because you can become a dealer even without financial investments.
3 ways to become a dealer without financial investments:
Realization of goods.
In this case, the work is done according to the principle: first - products from the manufacturer, then its sale by the dealer, and only then - money for the manufacturer.
A lot of dealers work exactly according to this scheme.
Work under the order.
Let's say you offer a product to a customer. He chose several positions and gave an advance payment.
You place an order for the manufacturer, when he fulfills it, you transfer a batch of products to your client, you receive the rest of the money, you send it to the manufacturer minus your remuneration.
That is, in fact, you work without your own investments.
The official representative of the company.
A large company hires you as a dealer, but in essence you are a sales representative who drives around with a price list and product samples, offering all this to customers.
For successful transactions you receive wages.
Ready to become a successful dealer?
Video about the features of the profession and about choosing a niche for you:
If you love working with people, have the gift of persuasion and are good at business, then you are absolutely right in what you think. how to become a dealer.
In this type of activity, you will surely succeed.
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“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 (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 things are not going well with finances, you can try to become a dealer.
Who is a dealer?
A dealer is an agent of a manufacturer who acts as an intermediary between the manufacturer of a particular product and a natural or legal person 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. For such companies, such cooperation is beneficial. They do not need to spend money on opening outlets. At minimal cost, they can quickly convey information about their products to a wide range 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, automobile holdings, which find buyers and receive a percentage of sales. If you decide to become a dealer, first of all decide in which area you want to work.
To become a manufacturer's dealer is not just to represent the products of a certain company, it is to be 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 (service, installation, transportation from the factory).
Becoming an exclusive dealer of a manufacturer means getting the right to represent the company in a particular 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 "manufacturer - end consumer". His main role is to find a buyer and close the deal.
How to become a manufacturer's dealer?
In order to become a dealer, you need to determine But the choice of the manufacturer is not the only 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, like, and reveal themselves in the field of trade. Experts have identified a number of qualities that a person should possess:
- activity;
- sociability;
- the ability to negotiate, to convince;
- stress tolerance;
- initiative;
- 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 "exude confidence", since the main task in this activity is to convince that the proposed products are of the highest quality.
If you are trying to establish cooperation with a representative of a store or other retail chain, 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 products, indicate its advantages and benefits for the buyer.
It is important to be prepared for rejection. Unsuccessful transactions are an essential attribute of working as a dealer. It is important here not to be upset, to analyze the mistakes made during the negotiations and move on, looking for buyers.
Required Documentation
To become a manufacturer's dealer, 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 that the following conditions be met in order to sign a partnership agreement:
- you must be a legal entity;
- availability of an office;
- conclusion of a mediation agreement.
For cooperation, you must also provide:
- passport data;
- charter (if you are a legal entity);
- memorandum of association;
- certificate of tax registration;
- certificate of state registration;
- the right of ownership or a lease (sublease) agreement for a non-residential premises where a place of sale will be organized;
- 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 permission to sell vehicles from the traffic police.
Description of activity
After signing a cooperation agreement 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 arranging a meeting with potential clients, make the maximum number of inquiries about them, develop a negotiating methodology. The larger 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 applicants. In order to have an advantage over them, you need to take into account a number of factors.
First, they pay attention to 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, most likely they will refuse him. If the manufacturer does not have a representative office in the specified area, he will more willingly agree to cooperate. The developed client base is especially appreciated. Also, the decision to partner is influenced by:
- reputation;
- availability of a technical base, premises for work;
- the possibility of attracting qualified personnel;
- the possibility of warranty service.
How much money should be invested?
Investments are required to conduct intermediary activities. In order to become a manufacturer's dealer, you do not need the same amount of capital as, for example, to build. But most often, investments in the selected project are needed.
It is difficult to name a certain amount, it all depends on the manufacturer's company. But if you manage to negotiate 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 products, but the price in this case will be higher than with advance payment.
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 lot. It is also worth including in the business plan the costs of transportation, rental of warehouses, office space, staff recruitment, legal and accounting services.
How to become a dealer without investment?
If the initial capital could not be raised, you can become a dealer without investment. There are several ways to do this.
Realization of products under the order
Perhaps, looking through the price lists for a certain product, you had to see the mark “On order” opposite the “Price” line. This means that you first 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 a dealer price;
- products are put up for sale at the dealer's point of sale (not a 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 goods are sent to the buyer, who, in turn, deposits the rest of the money into the dealer's account.
The specified scheme is suitable for goods of an average 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 shop is needed. For example, automobile intermediaries rent large areas for showrooms.
Provision of goods for sale
Today, many manufacturers provide their goods for a certain time, during which the intermediary must sell it. After the end of the agreed period, the products must be paid, and 1-3% higher than if the dealer paid without installments. The possibility of a return is prescribed in the contract. Most often, if the goods are not sold in full, you have to pay the full price, 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 does not suit you, consider
In almost every successful company, there comes a period when it is necessary to expand the geography of sales in order to increase the number of consumers of products and make a profit. At this stage, the company initiates a search for a person who could perform the functions of promoting goods in a certain region of the country or abroad.
We are talking about a dealer - a legal or natural person who purchases the company's products on special terms and at wholesale prices for its subsequent sale at retail or small wholesale. This is the so-called intermediary between the manufacturer and buyers (other intermediaries).
Given that the dealer is the largest wholesale buyer, he is endowed with exclusive rights to the product, purchasing it with all sorts of discounts at the lowest prices.
Such conditions are beneficial, among other things, to the manufacturer, which, in addition to increasing volumes, also receives representation of products in an as yet undeveloped region, plus the opportunity to shift some of the important organizational issues to an intermediary.
Selection criteria
Cooperation with a large company implies that the dealer has the ability to withstand competition from other applicants for occupying this niche.
When choosing a dealer, companies pay attention to:
- presentation of the enterprise (photos, infrastructure, characteristics of activities, etc.);
- experience in this field and the presence of an established client base;
- the region of residence (conducting activities) and mastery of the situation in this region: knowledge of the region's capacity in services and products; the concept of the constituent shares of the main sellers in the market; having an idea about the activities of competitors; having knowledge of key customers in the market plus keeping in touch with consumers on an ongoing basis;
- financial stability, readiness for investment (construction);
- availability of a technical base and a staff of qualified employees;
- interest in product promotion;
- favorable location of infrastructure facilities for potential customers, including proximity to major highways, convenient access road, etc.
The standard time frame for reviewing applications and making a decision varies from one to one and a half months.
If the decision in favor of one or another official dealer is positive, a dealer (service, distribution) agreement is concluded with the latter for six months (considered as a trial period).
Business Performance Opportunities
The representation of the manufacturer for the dealer network means great opportunities used to ensure the efficiency and profitability of the business.
It:
- receiving discounts from list prices plus bonuses for worthy fulfillment of dealer obligations;
- guaranteed centralized delivery of goods to warehouses;
- additional training for service, sales and marketing specialists;
- participation in leasing special programs, including the possibility of leasing equipment for service centers.
In addition, when carrying out activities, the dealer receives full marketing, technical and advertising support from the manufacturer (providing advertising products, technical literature, organizing exhibitions, etc.).
Required documents
If you are interested in an offer to become an official dealer of a manufacturer, you may be asked to prepare certain documents.
Namely:
- documents confirming the status of an independent legal entity in the proposed region;
- a completed application form plus an evaluation sheet, which indicates information about the enterprise, its location, sales, team and willingness to invest;
- business plan as part of the work with the manufacturer, taking into account the above aspects.
These documents are usually sent to the representative of the dealer network development bureau. Further, the applicant will be provided with more detailed information related to the requirements for the subjects of the manufacturer's dealer network, as well as a list of mandatory documents, the presence of which is mandatory for consideration of the application.
Start-up capital and availability of required infrastructure elements
There is no unequivocal wording to answer the question about the dealer's start-up costs. It all depends on the manufacturer and their requirements, the scheme used and the dealer's own developments. For example, if you intend to join the dealer network of KAMAZ PJSC, you need to be ready to invest in maintaining working capital for the purchase of products. This is about 10-12 million rubles for cars and exactly the same amount for spare parts.
Even at the initial stage, it is necessary to provide 5 million (up to six months) and 12-13 million rubles over a period of one and a half years for the development of the infrastructure of the dealer center.
If you manage to negotiate with the manufacturer regarding the receipt of products for sale, you can avoid large investments and pay the company after you sell the goods.
However, the price under such a scheme will be an order of magnitude higher than if you paid the fee immediately.
If you are ready to pay for the goods immediately, the amount of investment will depend on the volume of the purchased lot and the type of goods.
In addition, you will need to take care of the presence of mandatory elements of the dealer infrastructure in the proposed region (taking into account the declared status).
Will be needed:
- a protected area intended for receiving and storing products;
- storage facilities with conditions for loading and unloading;
- service center in management, ready to carry out all operations;
- office space for sales and purchases for staff plus a relaxation area for customers.
The type of activity under consideration has many pitfalls, requires the presence of certain personal qualities and the fulfillment of a number of requirements of the manufacturer. At the same time, this is a very interesting and profitable activity, in which success can only be achieved with a competent and balanced approach.