What do you need to become a distributor of a foreign company? Distributor of a foreign company in Russia: how to start a business not from scratch. Possible schemes for working with foreign manufacturers

In this publication I will tell you, who is a distributor, what are the specifics of distribution activities, and will also dwell in more detail 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, so after reading this article you will have a complete understanding of what this means.

Who is a distributor?

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

A distributor is a legal or natural person who is an 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 product, and in some cases, even between the manufacturer and the buyer directly.

A distributor can be either a huge company with a regular turnover of millions, or an individual who from time to time distributes the products of a certain company.

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

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

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

Or a direct sales option, used, for example, in:

Differences between a distributor and a dealer.

A distributor differs from a dealer in that it acts on behalf of the manufacturing company and receives goods for sale according to strictly specified rules (including those relating to the price of the goods), while the dealer acts on his own behalf, purchases goods at his own expense 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 in nature, and more precisely, the functions, rights and obligations of the 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, 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 cooperate with many distributors, and one distributor can cooperate with many manufacturers.

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

How does a distributor work?

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

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

Now that you have some understanding of what a distributor is, let's look at how to become a distributor.

To become a distributor of a certain product, you must sign an agreement with the manufacturer, which is usually called a “distribution 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 operational issues. In this case, it is issued distributor certificate with the seal of the manufacturing company and the signature of the general director, who confirms the rights to officially present the company's products.

Every manufacturer is always interested in having as many distributors as possible, because they work to promote his 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 terms of transfer of goods (for sale or prepayment) depend on the sales volumes 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 name, show good results, which will definitely work for you later.

You can work with several manufacturers at the same time, 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 representing only its interests is more profitable for the distributor.

For people who do not have a lot of initial capital and the ability to open a distribution business, you can consider the option of becoming 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 results, move up the career ladder to a supervisor, regional representative. At the same time, save the income you receive to open your own business. This way you can collect some knowledge and, importantly, gain experience working 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 warehouse space and equipment for storing goods;

– purchase or rent freight transport for transportation;

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

The good thing about the distribution business is that there is room in it 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. You can search for manufacturers in different ways:

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

2. Via the Internet. Simply by typing “looking for distributors” or “searching for distributors” in the search, you will be taken to many pages of companies wanting to build and develop their distribution networks. Choose those that are most interesting to you and act.

How to find dealers, sellers and buyers for cooperation?

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

– Through company catalogs;

– Through direct contacts to retail points of sale;

– Through your own website or online store;

– Through colleagues, acquaintances, relatives;

– Through advertisements in print media, etc.

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

Distribution activities are a good option on a variety of scales: from small work for yourself to generate additional income to building the largest distribution networks and businesses with million-dollar turnover. Everyone will be able to find something of their own in it, based on their initial capabilities and goals. A distributor's earnings largely depend on his ability to sell and his diligence. Therefore, go for it, and you will certainly be able to achieve good success in this business!

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Instructions

First, you should find a leader who can create a large sales system under him. Give up the dream that some ideal distributor will work for you, being content with a small reward, and you can do nothing at all. Finding a key distributor is finding a partner, and you need to know what you can give him in exchange for active work.

The most important thing is to be able to interest a person in your work. Your distributor must be personally interested in the success of your business - only then will he work to his full potential. Young people are ready to work for bonuses, gifts, small percentages of sales, but a good specialist is unlikely to agree to such conditions.

If you decide to make a wide sales network, place search ads distributors in various sources. Finding partners through the media is effective: newspapers and television. You can also post vacancies on job boards and online job sites. Advertisements are also effective in places where there are large crowds of people: at bus stops, at entrances, on advertisement stands. Some of the people who responded to your ads will drop out, but some will remain and cooperate with you, bringing you profit.

Think about how you can motivate your potential distributors. Keep in mind that many people are already disillusioned and prefer to work for a small but guaranteed salary. You can offer gifts, bonuses, discounts on travel around the world and other opportunities. Stories about real people who have achieved success online are effective. It is also important to make the responding people believe in your products, in their high quality, and in their significance for everyone. Distributing good products is easier and more enjoyable than distributing low-quality ones.

When talking to people about joining as a distributor, try to be honest, not promising mountains of gold, but give hope of success. After all, without receiving what was promised, the person will not only leave you soon, but will also spread rumors that are destructive for the company. Be honest with your partners! Think about how you can help these people, what you can give them, and you will get what you yourself are seeking.

Video on the topic

In recent years, the number distributors worldwide is steadily increasing. Being an official distributor is beneficial not only for companies, but also for individual entrepreneurs. Why is distribution so relevant and widespread these days?

"Distributor" has several meanings. In the broadest sense of the word, a distributor is one who carries out trading and, often, marketing activities. Distributors are enterprises that have the right to purchase and sell certain products (most often cars, various equipment, software, etc.) in regional (including foreign) markets. has expanded significantly. Nowadays, the concept of “distributor” is most often mentioned in the context of multi-level marketing, meaning a representative of a company who independently sells products using the direct sales method. In America, the first distributors appeared already in the 30s. last century. Then Karl Rehnborg, a chemist by profession, founded a company engaged in the production and sale of dietary supplements. Each product buyer became a distributor of the company and had the right to receive a percentage of sales upon successful involvement of new customers in the sales network. And, I must say, Rehnborg’s business turned out to be very profitable; the company managed to reach fairly decent turnover in a short time. Further, the distribution system was further improved by the fact that the company’s distributor made a profit even from the sales of those distributors who joined the trading process not personally, but at the suggestion of those once attracted by him distributors. In the 90s Russian citizens were robbed by many pyramids that positioned their activities as distributors. But then people simply did not know that a distributor should not begin his career ascent with any entry fees. Today, distribution is an absolutely legal business scheme. How

How to become a distributor? Of course, every person has heard the word distributor. However, not everyone knows exactly the meaning of this word. It is worth noting that, at its core, a distributor is a large-scale trading company that purchases products from well-known industrial manufacturers in large volumes and at low prices. After this, the trading partner sells the purchased products on the regional market in accordance with the terms of the contract. The operating principle is similar to.

Features of obtaining distributor status

As a rule, large companies appear for two reasons, the first of which is that a large manufacturer begins to develop new markets and invests large sums of money in the development of a distribution network. There is a second option - a large trade supplier can obtain distributor status to create a solid permanent customer base. After studying the features of this activity, you will learn how to become distributors.

This status can be obtained after negotiations have been held with the product manufacturer. As a result of these negotiations, a decision will be made to assign the interested person the status of a sales representative. The main factors that may influence the decision are the occupied market share and the dealer's authority in various areas of the business.

Many businessmen believe that the main value of partnership lies not in material and physical capabilities, but in a serious, established customer base.

Don't know how to become distributors? First steps

First of all, every reputable trading company must have a central office and a warehouse designed to store goods. The office should have a sales department that expands the client base, as well as an accounting department that controls all incoming and outgoing cash flows.

As for the size and volume of warehouse space, they depend on the product the distributor is selling. For example, if you work with food, then the area of ​​your warehouse may be small, but the storage conditions for these products are as strict as possible.

Sales representatives' expenses also include advertising and brand promotion. These points are an integral part of the work of any large trading company. Please note that brand promotion is usually carried out together with the manufacturer of the goods. In this case, the partner implements a targeted advertising policy in a specific region, and the manufacturer operates in large-scale interregional markets.

How to become a distributor and attract many clients?

To attract distributors, you can hold advertising exhibitions and invite wholesalers and dealers of various sizes to them. At these exhibitions, you have to draw the customers' attention to certain points. As a less costly and more effective method, this is becoming more and more promising.

First of all, you need to describe the advantages of the products that your company represents. In addition, the emphasis should be on flexible and convenient cooperation schemes between the wholesaler and the distributor himself. For example, if a product sells poorly during the winter season, discounts or deferred payment can be provided for it.

Using comprehensive methods of attracting clients, you can achieve good results.

Thus, it is unlikely that you will succeed in becoming a distributor on the first try. This status is the result of many years of painstaking work. Only an experienced and qualified manager can manage a large company. As for the markup on products that distributors can afford, it is approximately 20 percent.

Business involves an alliance of manufacturers, distributors, lenders, retailers and buyers.

There are clues how to become an official distributor:

Obtain premises for storing goods and placing cargo transport;
find customers using logistics management software.

Distribution is activities of an enterprise or organization that is responsible for the logistics of storage and transportation of materials.

A distributor can specialize in a wide range of different sectors, depending on local competition, resources and potential. So that become a distributor It is important to identify your target customer group and purchase the equipment necessary to meet your needs. For example, distributors who handle perishable food products (dairy, meat or frozen) must have cold storage and trucks.

Depending on the number of warehouses, type of customers, materials, distribution activities require a certain amount of space for storing goods. By becoming a distributor, distribution companies may be solely responsible for moving items around the world, or they may participate in a network of smaller companies that provide access to local resources. Having become a distributor, the company must trace the entire chain of movement of goods.

The location of the storage space is very important for the distributor. Warehouses inside a large city are very expensive if they are privately owned or leased. . When becoming a distributor, your best bet is to look for a central location close to a major highway, airport, or waterfront. It can be purchased for a reasonable price, assuming it is located outside the main city limits.

When you become a distributor, you need to have a reliable way to transport materials. There are two options: purchase your own fleet of vehicles, or use a courier service. For those who want become an official distributor, it is important to remember that there are benefits and risks associated with each option.

A distributor who invests in trucks must hire staff, pay for insurance and pay for fuel. Courier firms assume full responsibility for servicing the equipment, but courier fees represent a significant cost to the distributor. When do you decide become an official distributor, it is important to be able to adjust as the business climate changes. Thus, distribution is the responsibility for the movement of goods from the manufacturer to the client.

Having become a distributor, the company is responsible for the safety of production of retail customers. The company takes possession of the goods and is responsible for storing and distributing these goods to the retail store. In a typical arrangement, the manufacturer sells its product directly from the distributor.

If, after becoming a distributor, a firm is unable to find a retailer, it must determine other methods of selling the product. Accurate tracking of shipments, purchase orders, locations and distribution is central to the job. There are several quality software products available to assist with key business functions to help you become an authorized distributor.

We covered some aspects of the topic " How to become an official distributor" The main thing is to think through the flow pattern of the goods. But initially you can take out loans, receiving income from a large turnover of goods.