What do you need to become a factory dealer? Dealership from the manufacturer

Dealers are people who take goods in bulk for subsequent resale to sellers or stores individually or in small quantities (and not just drug dealers, as many are accustomed to believe). Most newcomers in this business do not want to make special investments: they are afraid of “burning out” if they suddenly don’t buy the product, there is not enough money to start, or other reasons, it doesn’t matter. For product owners, this desire is often not to their advantage, so there are not many options to implement their plans.

How to become a dealer without investment?

Method one - selling to order

Perhaps you have seen in the price lists of online stores the note “made to order” next to the indicated cost of the product. It means that you must first deposit the full cost of the goods into the seller’s account, and only then, after some time, they will transfer it to you for use. If you look at the situation from a business point of view, it looks like this:

  • The dealer enters into an agreement with suppliers for the delivery of goods at the dealer price (in some cases it is possible to work without an agreement).
  • The product is offered for sale at the dealer's outlet. More precisely, not the product itself, but the lines in the price list and promotional materials.
  • Buyers are charged an advance payment, for which the dealer purchases goods from suppliers.
  • The purchased product is transferred to the buyer.

Please note that if you work according to the “made to order” scheme, it is better to cover the market segment of goods in the middle price group (5-20 thousand rubles). It will be easier for customers to buy cheap goods in a nearby supermarket, albeit at a slightly inflated price, but quickly and immediately. If the goods are too expensive, you will have to spend extra money on renting a good office or store. For example, the same car dealers, in order to impress customers, are forced to rent large areas for showrooms.

Method two - goods for sale

Many manufacturers provide for this type of cooperation. The dealer is given a certain time within which he must sell the product. After the established period, you will need to pay for the goods, and the amount will be 1-2% higher than if you paid everything at once, so the risk of “burning out” does not disappear. If you fail to meet the deadline, you will have to compensate suppliers for losses. Only in rare cases can the goods be taken back from you (the terms of return must be specified in the contract).

Method three - free testing

If the manufacturer with whom you are going to cooperate agrees to send free samples of their products so that you can try them “in combat conditions,” then you are very lucky. Most suppliers do not want to work according to this scheme, so the chance to check a product for free is extremely rare.

Method four – become an official representative of the company

By choosing this option, you will receive advertising, information and consulting support, assistance in development, trade organization and, most importantly, a guarantee that the product you are selling will be of interest to the end consumer. In addition, advertising specialists are involved in product promotion, which saves you from having to do it yourself.

As you can see, it is quite possible to start a career as a dealer without investments, without risking anything (or almost nothing, as in the case of taking goods for sale) and without being obligated to anyone. Of course, you will have to put in a fair amount of effort, which will eventually have to pay off.

Readers' opinions

I read the title of the topic - “How to become a dealer?”, I don’t know about you, but I immediately have associations with drugs.

Qwer, I think that “test in combat conditions” means testing the ability of a product to arouse interest among consumers and its quality, of course, too. If consumers buy the first small batch of goods and speak well of it, then they can safely purchase an even larger batch (this time with their own money) and sell it without any problems. The dealer, by the way, can also, thanks to free samples, study the characteristics of the product offered to him for sale.

The idea is good, but there are also a lot of risks. First of all, I think you should study the market and test the quality of the product. In this case, you need to thoroughly study the product you are selling. And only then offer implementation services. In general, it’s a troublesome task, but worth it.

There are risks everywhere. And even more so, dealers, but here usually dealers are not just ordinary people, but those who have been engaged in some kind of art for years. For example, a person who is a fan of paintings can easily become a dealer in this area, since this is his element, and he will not buy low-quality goods for a lot of money.

If you become a company representative, there will be control from the company, which will not have a very good effect on your desire to sell. But less and less is given for the sale of goods every year. If they provided children's goods for sale, I would open a store myself.

Many trading companies offer to become distributors or dealers only to their regular customers who have proven themselves on the positive side on the basis of an agreement concluded with them, but not a single foreign company will give goods for sale to a supplier they do not know; this is very risky for them.

Angelica

For my dacha, I ordered different tools from the factory for cultivating the land. After payment, I was offered to become a dealer in my region. Unfortunately, at that time I could not do this, since I had just bought the product, and it was winter, and I did not test it in operation. Then it was already too late. I checked the markets specifically in the fall and they were already selling their goods with all their might.

Before becoming a dealer (that is, making a good investment financially and organizationally), it is wise to work as a sales agent (that is, the “made to order” option or something similar in essence). Thanks to this, sales tools will be formed and a circle of regular customers will be developed. And in general, you can feel confident in this sales market.

Dara, I was also offered to become a distributor through a company that distributes cosmetics, one of the cosmetic lines, but I was not satisfied with their working conditions. They have a sales plan, and hence bonuses and cash rewards, but this is acceptable for those who are free from other work, and this takes a lot of time.

Angelica

I will be experimenting with different fertilizers this summer. If it works out, I might think about selling it. At the same time, I will conduct an experiment with film and polycarbonate. You can enter into an agreement for the sale of Svetlitsa’s film; this is still rare in our country. But I'm more interested in vermicompost. True, it is expensive and I’m not sure whether they will buy it in the villages.

Dara, why is he so good? It’s just that I also have a problem with flowers, they don’t grow well, they put out leaves, but they don’t bloom. I tried to make different soils, but it didn’t make any sense, they were still capricious. I read a lot of reviews about the HB101 fertilizer, but they don’t send one or two packs, but only a batch.

Angelica

Oh, about the flowers, it’s all chemistry. I bought flowers at the market for planting, they all bloom and are so beautiful and alive. But I planted them from the hypermarket, but they don’t bloom and even grow poorly. I think that initially you need to buy good planting material. Regarding dealership, it’s a good idea, especially now that many products are offered for sale, but it is important to take into account the demand in the region so as not to make a mistake with the niche.

And I have with car dealers. Everyone thinks to the extent of their depravity, as they say. But the “no attachments” label is not entirely appropriate for this topic. Needed at least a store, which is what TS wrote about. And at first, few people will dare to pay you the full amount of the advance payment in the case of “to order” sales.

Angelica, vermicompost, and specifically even vermicompost contain all the necessary elements for plant nutrition. Plus, this soil is clean from all viral and fungal diseases. No pathogen develops in vermicompost. And now about the flowers. Flowering requires different conditions and the soil and its composition are not always to blame. Sometimes a cold winter is needed for flowering.

Zikam Stone, distributors or dealers, are the same sales workers who have their own property (store, warehouse, outlet), who decide to take a large batch of goods for sale, or purchase it immediately. And as for sales agents, then their task is to offer the manufactured product, conclude a supply agreement, and control the supply of this type of product. Therefore, in many ways, they have different functions. But both of them are united by the fact that they have a common task, which is to sell goods and find new customers.

Angelica

Don’t think that I’m too picky about the little things, but I’m wondering if there are differences between a dealer and a distributor, I can’t even pronounce this word correctly. Why are the names different if the function is the same? Or is a dealer not a distributor?
I would like to test something for free, a walk-behind tractor for example: rolleyes: .

Dara, this is the same thing, it’s just that now many vacancies are borrowed from other languages, but in fact their meaning and functions do not change, i.e. a wholesale batch of products is taken from the company at one price, and then it is distributed to its clients, but with a preliminary markup . The company encourages those dealers who take an active part in promoting their products and periodically rewards them with a bonus system.

Angelica

The most normal way is to take the goods for sale. Here the profit will depend only on you. If you simply become a representative of the company, you will receive a percentage of sales. He is usually not that tall. And it turns out that you are not running a business, but working for some company.

Dimcha.k, taking goods for sale may be the best way, but no one will simply, without checking you and making sure of your integrity and business viability, dare to entrust you with such a consignment of goods on which you can earn really good money. This is time, and quite a lot. But through a sales office, you can achieve success much faster, even if you don’t have complete freedom of action, especially if you choose the right product niche to work in.

Who is a dealer? What are the main functions of a dealer? How to become a dealer without investment and with maximum profit?

How to become a dealer of a manufacturer without investment?

Dealer - seller or distributor of manufacturer's goods. What is the difference from a distributor? Distributor– a seller or company – is engaged in the sale of goods on its own behalf under the terms of a sales contract in its favor. Goods are purchased for further resale. The dealer acts as a representative of the manufacturer or company, selling its services and goods with a pre-agreed price and market. Cooperation between the dealer and the source is regulated and has limited or specified conditions. IN dealer functions included also creating the value of the product - the needs and desires of customers.

Why is it beneficial to cooperate with a dealer?

We gradually lead you to how to become a dealer of a manufacturer’s plant without investment - to identify the need for such a position. A successful enterprise is gaining momentum and there is a need to increase the market for the sale of goods or services. Creating a dealer network is a powerful basis for gaining a foothold in the market. Since dealership includes marketing functions - to settle in the consumer’s head and become a necessary, valuable product - cooperation between the manufacturer and the dealer is beneficial.

Who is the official dealer of the manufacturer?

Official dealer- this is the person responsible for the promotion, sale/sale of products who has entered into an agreement with the manufacturer for direct supply to retail network. In an effort to maintain competitiveness, the manufacturer produces more unique products, so the search for dealers - business partners - who would support the ideas of the organization and expand the business of the entrepreneur at his own expense is among the interests of the manufacturer.

How to become a manufacturer's dealer?

Most manufacturers are ready to offer organizations or private entrepreneurs to become a dealer with minimal investment. You need to choose the network you are interested in, get acquainted with the offers, arrange a meeting with a representative of the manufacturer, discuss the volume of investments, the plan for entering the market, the composition and then the business scheme.

The dealer is not obligated to purchase the product– this is an advantage over distributive methods of cooperation. Being an advanced manager or a top-level representative, you can go to the manufacturer’s plant and competently take charge of selling products, working on his behalf without investments, but on a percentage basis.

When no investment is required:

  • There is no need to rent retail space, office, warehouse;
  • No employees, equipment, etc. are needed;

How to become a dealer without investment– work to order or with a specific volume of products from the manufacturer’s warehouse for sale.

From minimal preparation to large batches:

  1. Propose a specific strategy for increasing the market and the number of customers for the manufacturer's plant. Develop an anti-crisis plan, indicating possible actions during periods of unstable sales. Maintain predictability of subsequent moves.
  2. Offering solutions to problems without the participation of the manufacturer – we build stability and trust.
  3. We are developing a scheme of affiliate networks - a network of contacts for sales.
  4. We document the business process, cutting through bureaucratic red tape.
  5. We capture the sales sector by studying target audience, the main supplier players in the market (weaknesses and strengths method).
  6. We increase sales that cover advertising campaign. Note that money literally should not be the dealer's headache, you focus on sales volume and the number of new buyers.
  7. Combination of the dealer network and direct sales (if previously certified by the manufacturer).

What does the manufacturer receive?: remains in its region/distribution network; receives partnership, documented cooperation; sells goods in other regions/chains; increases sales of products; loads the plant; increases awareness of services/products. Products appear on shelves more often and are offered profitable terms for the buyer, competent logistics are carried out, and intelligent personnel are assembled.

How to become a dealer: we convince in negotiations

  • Strengthen trust;
  • Show that you are really ready to fulfill your obligations;
  • Provide possible confirmation of the security of bilateral relations;
  • Focus on the uniqueness of the brand with which you are ready to cooperate and on whose behalf you speak;
  • Comply with the long-term vision and mission of the manufacturer, share values ​​- the manufacturer carefully chooses with whom to cooperate;

Possible investments (to be negotiated):

  • Advertising costs;
  • Full/partial purchase of goods;
  • High selling prices – will it cover the costs?
  • Costs for issuing contracts, passports, rent, investments in online platforms for promotion and sales;
  • Training: programs, trainings, master classes;

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Do you want to work under a well-known brand, but don’t know how to become an official dealer? Below we will describe in detail what is needed for this and what criteria must be met. We will provide a list of documents and show you how to get started in a dealership without investment.

Dealer is...

Dealer (English dealer - trader) is an official Sales Representative large company(vendor). He is issued a certificate allowing him to work under a specific mark or brand. He can purchase goods at wholesale prices directly from the manufacturer and sell them at retail.

The dealer's responsibilities include:

  • Promotion of goods in the selected region.
  • Fulfillment of sales plans set by the vendor.
  • Providing clients or customers with detailed information about products and the manufacturing company.
  • Convincing the target audience to choose products from a specific brand.
  • Stay up to date with the latest vendor innovations.
  • Establishing relationships with interested representatives from different areas activities.

The responsibilities and benefits of a dealership will be discussed in detail below. But first you need to understand the main types of such activities.

What schemes do vendors use?

There are 3 main schemes.

  1. Collaboration with one partner. The vendor bets on one major market player and relieves himself of a number of tasks that the dealer solves for him: promotion, retail goods and attraction wholesale buyers.
  2. Working with a network of partners. Vendor builds affiliate network in several regions, creating healthy competition in the market for its members. But often it is precisely because of this that companies have to look for new dealers, since the old ones lose interest in them due to the lack of a clear policy or the inability to meet the target sales volumes.
  3. Mixed work scheme. The vendor operates in a selected region with a large number of clients. And dealers work where the target audience is smaller. That is, for example, a company and its dealer do not operate in the same city, unless the agreement provides otherwise.

According to such schemes you can work in the market valuable papers, retail or cooperate with large companies: for example, automobile concerns or computer equipment manufacturers.

How to become a dealer: personal qualities of the candidate and selection criteria

Dealership is attractive business, but with serious selection criteria. You need to clearly understand whether you meet them.

Personal qualities of the candidate

A person who decides to become a dealer must have at least a minimum set of personal qualities.

  • Stress resistance. You need to be resistant to all irritants that may occur in your work: communicating with clients, resolving conflict situations, fulfilling vendor requirements and sales plans.
  • Activity. Only through active actions can you earn good money. This concerns attracting the attention of the target audience to goods or services, business promotion, etc.
  • Initiative. Vendors prefer to work with dealers who are ready to take the initiative into their own hands for the benefit of the common cause.
  • Competitiveness. Ideally, a future dealer should understand how to competently differentiate from competitors in order to gain a larger share of the market.
  • Determination. Without it, it is impossible to build a successful business.

If an entrepreneur has this set of qualities, then his chances of becoming a dealer are great. But that’s not all, as there are still criteria that must be met.

Criterias of choice

A candidate for the role of a dealer must be registered as an individual entrepreneur or LLC. Become part of a large company or worldwide famous brand an individual will not succeed.

Even before the interview, companies take a closer look at the candidates: whether they can withstand competition from other applicants, whether they have experience in the required field, in which region they are going to work, etc.

Attention is also paid to the candidate’s business plan and whether he has an established client base.

They also look at the company’s reputation, number of employees, number of years on the market, etc.

That is, you cannot simply register an individual entrepreneur and, without experience, come to a large or small company with an offer to become their dealer. You need to seriously prepare for this.

“Vendors give preference to those candidates who can represent them in a free region, show a competitive business plan and already have experience in the desired niche.”

Conditions to be met

  • Register as an individual entrepreneur or LLC.
  • Have financial stability and successful business experience.
  • Have an impeccable reputation.
  • Clearly understand the specifics of the chosen company’s niche.
  • Have a unique business plan and ideas for effective promotion products or goods.
  • Possess the personal qualities listed above.
  • Be ready to invest and have the means to do so.
  • Be open to continuous growth, development and learning.
  • Have the right one technical base and premises for conducting activities: office, retail facility, warehouse, etc.

In some cases, for example, if you have a company, you will need a strong team: experienced and qualified employees.

Having met these nine conditions, the vendor is unlikely to refuse you the position of a dealer.

What documents need to be collected

  1. Certificate of registration of individual entrepreneur or LLC and registration with the tax service.
  2. Charter (if LLC).
  3. Memorandum of association (if any).
  4. Lease, sublease or title deed commercial real estate: office, warehouse, retail outlet, etc.
  5. Passport and its copy.
  6. Bank details.

If you plan to become a dealer of an automobile concern, you will need to obtain a permit to sell vehicles from the traffic police.

When collaborating with a sub-dealer, you will need a valid agreement with him.

All listed documents must be notarized if the vendor does not have an in-house lawyer.

Finding a vendor: where to look for him

There are two ways to find a suitable company.

Job search sites

There are many resources on the Internet for free resume posting. They are often monitored by companies looking for new dealers to expand their network or replace departed ones.

In your resume you need to describe in detail your experience in business, niche, mention the presence of a business plan and ideas for promoting goods and products. Be sure to indicate who you are: individual entrepreneur or LLC. Remember that being an individual you will still have to register as a legal entity. But you shouldn’t do this in advance, because there is no guarantee that someone will pay attention to you and offer to become a dealer.

Independent search

This is the most effective method. It consists of finding a suitable company and sending out a resume.

If you are engaged in trade, then you should choose a company that supplies one of the goods and invite management to become its official dealer.

How to become a dealer without investment

Dealership does not always require money. You can enter such a business without large investments. There are 3 work schemes for this.

  1. Product for sale. First, the manufacturing company sends its products to the dealer, who sells them and only then gives the money to the vendor. This is the most profitable and popular scheme.
  2. Product to order. The buyer orders the product, makes an advance payment, and the dealer sends the order to the vendor. The goods delivered from the vendor are transferred to the buyer, who makes the remaining payment. After this, the dealer sends the money to the manufacturing company and keeps his share of the markup.
  3. Official representative. The vendor hires a dealer who offers price lists and product samples to the target audience. Income depends on the established remuneration.

The most profitable work schemes are the first and second. The third is more like hired work.

Advantages of dealership

Being a dealer has more advantages than starting your own business.

  • You will start selling under a well-promoted brand, around which a loyal target audience has formed.
  • There is no need to spend money on expensive advertising campaigns.
  • You yourself choose the product or products that you will sell.
  • There is no need to pay for training, because vendors regularly conduct free trainings and master classes for dealers. You will gain valuable knowledge that you can later implement in your own implementation.
  • It becomes possible to offer products cheaper than analogues on the market.

7 secrets of successful dealership

In conclusion, we suggest you study and remember 7 main secrets that will help you become a successful dealer.

  1. Always check the vendor before sending them your resume. How well the company is chosen depends on future success business.
  2. Choose an inexpensive, but high-quality product that is in demand among your target audience.
  3. Collect and constantly expand client base. Use different marketing techniques.
  4. Train and, if possible, attend events organized by the vendor.
  5. Always win people over: look personable, be friendly, smile and don’t lead things to conflicts.
  6. Appreciate regular customers and look for new ones. Offer them discounts and bonuses for their loyalty.
  7. Be confident, assertive and clear in your interviews with new clients or partners. This also applies to the moment of first communication with the vendor.

Becoming an official dealer is not easy. You need to carefully prepare for this: study the company, come up with several original ideas product promotion. You need to be confident, purposeful, punctual and responsible. This is the only way to become a successful dealer who will be valued by the vendor.

Modern people increasingly want to become independent from the state and strive to work for themselves. Opening 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 people do not know this concept, but it is a common phenomenon abroad. 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?

Types of dealers

  • a dealer who is a participant in the securities market;
  • a dealer who purchases wholesale and sells products at retail;
  • a dealer who is a representative of the company, finds customers and receives a profit for this.

Working conditions as a dealer

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:

  1. Preference is given to candidates with experience in the company's field of activity.
  2. The dealer must have a business plan.
  3. The representative must be interested in the company's services/products and be results-oriented.
  4. The dealer must have the necessary equipment.
  5. The dealer must have the ability to invest in procurement/construction.

The company is interested in promoting its products in different regions, therefore, if a dealer network is already developed in the city of your choice, you may receive a refusal. The solution is to look for a new manufacturing company or move to a region that is not occupied for activities.

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, the memorandum of association.
  • Certificate of state and tax registration.
  • A document certifying the authority of the manager.
  • Premises rental agreement, if necessary.
  • If there is an agreement with a sub-dealer.
  • Manager's passport.
  • Bank details.

If the dealer is registered as individual entrepreneur, then you only need to have a certificate of individual entrepreneur and tax identification number.

Benefits of working as a dealer

Working as a dealer has many advantages compared to starting a business on your own, the main one being receiving an already advertised product. This means that there is no need to spend money and time on promoting a brand and promoting a new product to the masses; this has already been done by a higher-level partner company.

Another important reason to become a sales dealer is the ability to choose the product you work with. If you have an attraction to sports products, then there will be no desire to deal with the products Food Industry and vice versa. The main component of business success is the desire to do it, and not the need to earn money.

To become a dealer, you do not need to spend money on training; the company offers it for free. This is an excellent chance to learn from a company that has proven itself in the market. The manufacturer usually trains its dealers in the basics successful sales, marketing, after-sales service - in a word, it helps to establish all the processes that are necessary to sell the product. This is a significant plus, since achieving the results of a large company on your own is very problematic, and it can take years. Various seminars, trainings, trips to other regions to learn new working methods 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 higher-level company. Thanks to this, there is no need to search for points of purchase of the necessary goods.

Becoming a factory dealer means gaining company experience that has been acquired over the years. This may help in the future to open your own company, a new brand.

Many companies specifically resort to cooperation with dealers, since in this way they can promote the product in an absolutely different regions countries.

Where to find companies for cooperation?

The desire to become a dealer is not enough; for this you also need to find a company to cooperate with. There are two options here.

You can register on job search sites, publish your resume with an offer of cooperation and wait for a response from companies or send responses to their vacancies.

Another option, the most productive, is to look for companies yourself. 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 its website. 90% of success is the choice of the supplier company, so you need to pay close attention to the choice.

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