Dealer sales what. Dealers - who are they? Other types of dealer

Dealer- a company or individual, a representative between the manufacturer and the consumer. A market participant who executes purchase and sale contracts on his own behalf.

The concept dealer is used in the following areas:

• trade - activity in the acquisition of products and their subsequent sale in one’s own name and at one’s own price;
• stock and foreign exchange market - commercial or government organization, which formalizes the purchase and sale of shares in its own name and at its own expense.

The term dealer comes from the English word merchant, agent. A dealer is a participant who purchases goods wholesale and sells them in small quantities or at retail.

Dealer- the last intermediary link in the chain of services and goods, and is in direct relations with the purchaser. The work of an intermediary is determined by representing the interests of the manufacturer and the purchase and sale of goods manufactured by the company.

The work of the dealer is regulated by an agreement drawn up between the manufacturer and the intermediary. The agreement regulates the rights and obligations of the parties. The dealer has obligations to the company that produces the product.

A feature of the intermediary’s activities is additional obligations assumed by publicly announcing the cost of the service. Or the sale of goods with obligations to execute transactions at agreed prices within a specified period of time. For many manufacturers, dealer services are the only way to sell products. Companies are looking for dealers to sell goods.

Types of dealers

View dealer activities is divided depending on the area in which the intermediary works.

Currency dealer- a player in the foreign exchange market. The main intermediaries are central and commercial banks. A central agency buys or sells currency to regulate the rate of national funds.

Bank-dealer- a commercial institution offering securities on the market.

Broker- a company with the functions of a dealer and broker on the stock exchange.

Primary dealer- a company authorized to place a new issue of securities.

Exclusive dealer- intermediary involved in the sale and technical maintenance products from one manufacturer.

Investment agent - legal entity associated with a company and engaged in trading on the stock market in the interests of the represented company.

Subdealer- agent of the intermediary, conducting activities on his behalf and at his expense.

There are also art dealer- legal entity, leading activities in the field of art.

Currency dealer

Basically, commercial banks or joint-stock organizations with large capital act as foreign exchange dealers and sell foreign currency values. - operations of currency intermediaries.
The foreign exchange dealer is divided into two groups:

1. primary intermediary - large banks supporting the market in terms of rates and liquidity;
2. official dealer - intermediaries between primary employees and investors when processing transactions on the bond market.

Dealer bank

The dealer bank arranges the purchase and sale of bonds at its own expense and on its own behalf. This dealer must meet the standards of the Central Bank to conduct activities in this area:

• received license of a stock market participant;
• there are no sanctions or any payment arrears;
• equity capital in the amount of at least 1 million euros;
• break-even activity for the last reporting period;
• membership in the organization of dealers on the stock market.

Dealer-broker

A broker is an exchange participant who manipulates securities on behalf of the company and at its expense.

A broker-dealer combines the functions of a broker and a dealer at the same time. That is, the company can act on behalf of the represented financial institution and on its own behalf without any intermediaries.

Primary dealer

The primary dealer has the right to submit bids for the placement of short-term government bonds (GKOs) at the auction. Primary intermediaries set firm GKO quotes and keep them in the bidding system.

Dealers have the right to use the credit resources of the Central Bank through repo operations - the purchase of bonds with an obligation to resale. The main bank buys securities from the primary dealer with subsequent sale within up to 2 days at a price fixed at the auction. The difference in the cost of securities is the credit interest received by the dealer.

Exclusive dealer

An exclusive or official dealer receives products directly from the manufacturer. The dealer has the right to set competitive prices on his own behalf in the market. He receives from the company the right to trade in the territory of his choice.

An official dealer represents the interests of a foreign company in the country.

The dealer completes the entire issue of bonds, shares and other securities and buys them at a single price and sells them at market value.

An investment dealer has the right to buy and sell bonds on behalf of the represented company for a commission.

Art dealer

A company that buys or sells art. An art dealer represents artists and contacts galleries, museums and collectors whose interests correspond to the works of the represented artists.

Art dealers can anticipate market aspirations or influence market tastes.

The word "dealer" came to us from English language, its literal translation is “trader”. This article will focus on leaders working in the securities market.

Who is a dealer?

A dealer is a businessman who makes transactions the subject of which is. The dealer has the right to carry out such transactions exclusively at his own expense and on his own behalf. One of the subtleties of a dealer’s professional activity is responsibility for the quoted prices for the purchase or sale of securities, as well as responsibility for the timing of the transaction. Dealers who successfully manage their professional responsibilities, become market makers. Based on the Russian constitution in force today, a dealer can only be a legal entity. A license to carry out dealer transactions is issued by the Central Bank Russian Federation. If there is no such license, then the dealer will not be able to participate in trading taking place on the exchange.

For various types activities must have the appropriate license, the central bank issues two types of such documents:

1. To carry out transactions with government securities.

2. To carry out transactions with private (corporate) securities.

In order to be a reliable guarantor of the execution of transactions in case of unforeseen situations, the dealer must have a certain amount cash. The minimum amount of such money is fixed by law.

What are the main responsibilities of a dealer?

By taking responsibility for setting prices for certain securities, the dealer creates a market. In addition to prices for documents, the dealer can provide various data that is of fundamental importance for the transaction, as well as conditions. Such conditions may be:

number of purchased (sold) documents;

the period during which prices will be valid;

and many other conditions.

In the case when the data announced by the dealer suits the client, it can move to the completion stage. The list of responsibilities of the dealer includes support of the transaction until its logical completion.

When reporting a transaction involving specific securities, the dealer has at his disposal information about the position of the enterprise to which these securities relate, but may be in no hurry to disclose such information. has the right to demand from the dealer the most complete information about the distributor (owner) of the securities.

Regulation of the work of the dealer by the existing constitution

Of course, each dealer is a more experienced and professional player in the securities market than the majority of his clients, which is why the legislation of all states in which securities trading is possible clearly regulates the relationship between the dealer, seller and potential buyer papers The current constitution assigns the following responsibilities to the dealer:

1. All actions of the dealer must be aimed solely at the benefit of the client.

2. The dealer must strive to provide his clients with the most comfortable conditions for conducting a transaction.

3. The dealer must provide the client with the most objective and truthful information about probable risks, as well as about the position of the issuer at the current moment.

4. The dealer has no right to persuade the client to make a transaction by providing false information or deliberately distorting facts.

What is a dealer formed from?

The dealer's salary consists of:

Differences between the sale and purchase prices of the same package of securities.

Commissions.

Payments for informing the client.

In the securities market there are often dealers who successfully combine dealer activities while also being brokers.

Sum starting capital the dealer is the most important criterion to obtain a license from the Central Bank, because as soon as the dealer has own money can ensure that the transaction is completed to the satisfaction of both the buyer and the seller.

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Modern society is developing every day at a rapid pace, more and more new professions and terms are appearing. Thus, quite recently, the now famous dealers and intermediaries were called merchants. However, in the current market relations the differences between different types of product distributors are clearly defined. Dealers and distributors – who is who, we will try to figure it out in this article.

Who is a dealer

The word "dealer" is of English origin and is translated as "agent, merchant." A dealer is a company or individual who purchases products wholesale and sells them in small quantities or at retail.

This group of traders also includes agents of the manufacturer or distributor participating in the transactions.

Thus, the dealer occupies the last place in the commodity exchange chain and is in direct relations with the final buyer. This is the main answer to the frequently asked question - what is the difference between a dealer and a distributor.

Types of dealers

IN trade sphere There are two types of dealers:

1. A retail dealer is a classic type of intermediary between a trading company and legal and individuals those wishing to purchase the product.
2. An exclusive dealer is an intermediary in the sale of original rare goods in a certain region. He owns the right to represent premium products and has the opportunity to make unlimited profits.

To better understand the difference between a dealer and a distributor, let's consider their main functions, rights and responsibilities.

What is the job of dealers?

Dealer activity consists of performing intermediary operations:

• purchase and sale of products produced by enterprises or sold by distributors and owners;
• representing the interests of the product manufacturer and its brand on the market.

Cooperation between dealers and product owners involves the conclusion of an agreement that defines the rights and obligations of each party. But, in addition to the delivery and payment of goods, dealers are required to adhere to certain principles. Thus, the intermediary, in addition to its main functions, has additional rights and certain responsibilities to the manufacturer.

In other words, the dealer is fully responsible for his activities and if the terms of the contract are not met, he may lose his job. So, if sales are not going well, the agent is not actively promoting the brand, and the owner of the product does not sell the required quantity of products, the company may refuse the services of such an intermediary. In this case, the dealership may be transferred to another dealer.

To ensure that the intermediary is interested in sales, all manufacturing firms and distributors offer agents a percentage of the actual volume of goods sold, in which a dealer differs from a distributor.

Dealer rights

Each dealer has the right:

1. Name yourself official representative manufacturer or distributor.
2. Receive goods taking into account dealer discounts. He plays the role of a reseller, so he buys products at special prices.
3. Represent trade interests manufacturing company in a certain region or among a specific circle of buyers.
4. Receive a loan from the manufacturer in order to develop your trading activities. From this point it follows that the intermediary does not necessarily have to be financially secure. What is the difference between a dealer and a distributor? The fact that he can start his activity with a minimal contribution.

Dealer Responsibilities

There are many more professional characteristics, which illustrate how a dealer differs from a distributor. The difference can be determined by the requirements put forward by manufacturers. Thus, the responsibilities of the dealer include:

1. Planned procurement - the dealer must purchase goods in a certain quantity and at the frequency specified in the contract. If for some reason the intermediary was unable to sell the required volume of products, then the difference is carried over to the next period. The fact is that the subject of the contract is the purchase of goods by the dealer from the manufacturer, and not its sale to the final buyer. Therefore, the agent is obliged to buy products in a specific volume. When the intermediary is already the owner of the goods, the manufacturer is not interested in the dealer's relationships with third parties.
2. Territoriality - the intermediary has his own implementation zone and must adhere to it. As a rule, such a sales territory coincides with the geographical or administrative division of the country. This could be a village, a city, a region or an entire state. If the contract provides for the right to sell in a specific territory, the dealer can supply the market with his product as a single person. Although it is possible that other agents with similar products will operate in this area. Such saturation with intermediaries is typical for consumer goods (for example, food).
3. Promotion of goods - this responsibility applies to every trader - dealer or distributor, but it manifests itself in different ways. At this point there are features of each type of trade, which also answer the question - what is the difference. The dealer and distributor are almost equally obligated to facilitate the sale of goods. Only each of them uses their own marketing tools. So, the dealer must carry out various promotional events and shares. Thus, the intermediary actively advertises the manufacturer. And if several intermediaries of such a company work in the territory, promotions one agent should stimulate sales for all dealers. Financing of promotion occurs only at the expense of the intermediary. For comparison, marketing campaigns The distributor is paid by the manufacturer of the product.
4. Trade only goods from one manufacturer. This is especially controlled when the enterprise is fighting with competitors for the sales market. As a rule, dealers of the same brand must adhere to a certain company style. For example, wear branded clothing, use special equipment with advertising pictures and slogans.
5. After-sales service - in addition to the sale of goods, the dealer must provide warranty and post-warranty repairs of the sold products. Warranty repairs are carried out free of charge to the buyer, and costs incurred by the dealer must be reimbursed by the manufacturer.

The intermediary is also obliged to serve buyers at high level, since he is the face of the manufacturer. During communication with the dealer, buyers develop an attitude towards trademark, which significantly affects the indicator of commodity demand.

Sometimes the contract may provide for additional responsibilities: supplying the manufacturer with materials and raw materials, lending to production as an advance payment.

Who is a distributor

A distributor is an individual or legal entity who is an official representative of the manufacturing company and performs the functions of distributing goods from the enterprise to retail or wholesale resellers - dealers. Such a distributor is an intermediary between producers and subsequent traders. This is an important feature of how a distributor differs from a dealer. Although there are some cases when the distributor works with end customers.

A distributor can be either large company, and one person with certain skills and knowledge.

In addition, the distributor has the exclusive right to sell goods at a reduced price without trade markups. These are the most important differences between a distributor and a dealer.

Distributor functions

The functions of a distributor and a dealer are very similar. The distributor is also involved in the sale of goods, replenishment of product inventories and the search for ways to sell them. But there is still a main feature that distinguishes a distributor from a dealer - the development and maintenance of a dealer network. That is, the distributor is constantly looking for new intermediaries. Thus, in order to increase large sales volumes, each distributor tries to create its own dealer network that would generate a stable regular income.

Requirements for distributors

To carry out its functions, the distributor must meet certain requirements. So, it should have:

• a specially designated place for storing the required amount of goods;
• own dealer network;
• funds for lending to intermediaries;
• qualified personnel.

Such differences between a distributor and a dealer indicate some complexity of the profession, since the distributor must have a certain financial basis.

Who is more important - the distributor or the dealer?

At the very beginning of their activities, every manufacturer wants to create a developed sales network for their products. To do this, it uses both distributors and dealers. Both perform the same role - selling goods. But who brings in more income?

Based on quantitative indicators of sales and profits, the distributor can be considered the most significant link in the trade chain.

As a rule, an experienced distributor has a large sales network, which ensures stable sales volumes.

But if dealers are removed from this process, distributors will be forced to look for buyers on their own. And this will slow down trading and significantly affect the manufacturer’s profits. After all, the ability to work with customers is what distinguishes a dealer from a distributor. Therefore, both distributors and intermediaries are equally important in the trading process.

Dealer - a person engaged in the purchase and sale of any product on his own behalf and at his own expense

Information on the definition of a dealer, rights and obligations, types of activities

Dealer is the definition

Areas of activity of the company, exchange, bank, enterprises, institutions, organizations with which interaction is carried out;

Methods for studying and forecasting demand for services sold and provided;

Prospects for the development of trade and the financial and banking system;

Rules for drawing up contracts;

The procedure for establishing connections with consumers of goods and services;

Schemes of business contacts and organization of advertising activities;

Consumer properties of goods, storage rules, terms and the conditions for their implementation;

The advantages of different types of services;

Methods of labor organization and management;

Technical means of processing and transmission information;

Civil and labor legislation.

Dealer as a professional financial market participant

A dealer is any person, natural or legal, who carries out transactions with financial assets on a professional basis at his own expense (publicly issuing quotations for purchase and/or sale at his own expense, with the assumption of firm obligations to carry out transactions at the announced quotations, including including in order to maintain market liquidity), is an exchange intermediary. He acts on his own behalf and can act intermediaries between brokers, other dealers, clients. A dealer can act as an intermediary in trade transactions for the purchase and sale of securities, goods, and currency.

According to Russian legislation, to carry out dealer activities and be a dealer on securities market maybe only legal. face, commercial organization received a license to carry out dealer activities from the relevant supervisory authority. Without licenses to carry out dealer activities, a legal entity cannot be a participant in trading on the stock exchange.

There are two types licenses for dealer activities:

For transactions with corporate securities;

For transactions with government securities.

To ensure the execution of transactions, the dealer must have sufficient equity capital, the minimum amount of which is established by law. The dealer can combine his activities on securities market with brokerage activities.

By accepting obligations to quote securities, dealers form additional liquidity stock market. When announcing public quotations, the dealer can communicate other essential conditions necessary for concluding a purchase and sale agreement: the number of securities being purchased (sold), the validity period of the announced prices, etc. A market participant, knowing the conditions of the transaction, evaluates them and, if they satisfied, concludes a deal with the dealer on the proposed terms. The dealer is obliged to fulfill this transaction. Feature Russian legislation regarding securities is that if the dealer has not offered significant terms for the transaction, except for the price, then he is obliged to enter into a purchase and sale agreement for essential conditions proposed by another participant in the transaction. If the dealer evades concluding an agreement on the client’s terms according to the quotes announced by the dealer, a claim may be brought against him to force the conclusion of such an agreement and compensate the client for losses incurred.

When announcing securities quotes, the dealer, as a rule, has information about the state of the issuer. However, this is not always available to a wide range of market participants. Therefore, the dealer is obliged to disclose information about the issuer and advise clients on the acquisition of certain securities.

By law, the dealer is obliged to:

Act solely in the interests of clients;

Provide to your clients best conditions execution of transactions;

Provide clients with all the necessary information about the state of the market, issuers, supply and demand prices, risks, etc.;

Prevent price manipulation and coercion into transactions by providing deliberately distorted information about issuers, securities, price dynamics, etc.;

Conduct transactions for the purchase and sale of securities in accordance with the instructions of clients in priority order in relation to dealer operations, if the dealer combines his activities with brokerage activities.

The dealer is engaged in the purchase and sale of securities, making money on resale or receiving interest on the purchased securities.

Special types of dealers in the stock market

Market maker - professional participant, dealer, participant bidding exchanges, acting on the basis of a contract of agreement with stock exchange, who assumes additional obligations to submit applications and make transactions with securities assigned to him, in order to maintain prices, demand, offers or volume bidding securities.

To maintain liquidity in this asset, the market maker places orders to buy and sell in a certain volume at a certain distance from each other. As a rule, the volume and distance between orders, as well as the execution time of the market maker to fulfill these obligations, are determined by the agreement with the exchange.

Sources income official market maker:

The difference between the purchase and sale prices (spread);

Return of commission from the exchange.

Dealer is

The market maker can either receive or lose. Income The market maker's leverage is maximum in the case of a calm, stationary market. The market maker may begin to suffer losses if the volume of demand for assets or offers asset strongly shifts to one side, which creates a large directional position on the balance sheet of the market maker.

In addition to the official market maker, there are also unofficial ones. They do not enter into an agreement with the exchange and do not receive a fee from the exchange for maintaining liquidity, but are simply trying to make money by differences purchase and sale prices. The advantage of an unofficial market maker is that he has no obligation to be present in the order book and can easily leave the market at a time of unfavorable conditions.

Primary dealer - legal a person that is an investment institution (a professional participant in the securities market) in accordance with the law and has entered into an agreement with the central (national) bank on bonds. Authorized to place a new issue of securities, has the right to purchase newly issued securities directly from the Treasury, and is obliged to quote prices on an ongoing basis seller and the buyer.

Forex dealer

If we take into account the work of dealers in the foreign exchange market, there is a clear difference from the position of a dealer in the stock market. Dealer on foreign exchange market- this is, which is not only a trading participant, but can also independently quote exchange rates. Unlike transactions that are serviced by brokers, bringing them to the dealer currency Forex necessarily carries out all actions independently, on its own behalf, and at the expense of its own finances. In relation to the trader, the dealer acts as a counterparty and, as a result, is interested in the client’s loss. This is the main and significant difference between a Forex dealer and a dealer on stock market. All trader in the Forex currency market through a dealer is based on constant play trader with the dealer. If he wins, the dealer definitely loses, or the situation is completely the opposite. When working through a dealer, all the trader’s orders regarding orders are not displayed directly, but are accepted onto the dealer’s balance sheet. The dealer has the right to set his own price for the client. The dealer always has the right to dictate his terms to the client and influence the course of trading, creating constant market dynamics. The dealer is in a privileged position, having information about the client’s bids and influencing the course of trading through his actions. Players who are well versed in the system of the foreign exchange market know that the very scheme of the dealer’s work is built on the client’s loss. Only taking this information into account can traders successfully build their trading strategy.

International currency Forex market represented mainly by dealers, of whom there are an order of magnitude more than brokers. This is due to the fact that most of the traders participating in the trades have small capitals, the turnover of which cannot bring large commissions. This category of traders is regular customers most dealers. Brokerage companies, which are most often represented on the Forex currency market by large financial companies and foreign banks, are interesting major players with large financial capital.

Becoming a dealer on the international Forex market is quite difficult. The annual fee for the right to be a dealer on international market Forex is valued at thousands of dollars. There are a number of additional fees that entitle companies to receive permanent dealer accreditation on the international Forex market. Novice traders who have entered the international Forex market for the first time should carefully select a dealer. In practice, the dealer must, upon the client’s request, provide all the existing principles of financial policy on the basis of which he carries out his activities on the international Forex currency market. When choosing a dealer, it is important to rely on the length of his work in the market, authority and quality of services provided.

Car dealer

Car dealer - trading company, acting as an intermediary between vehicle manufacturers and those wishing to purchase automobile legal and individuals.

Most car dealers have a clearly marked list of the brands of cars they sell. usually has the option to either choose automobile from this list and buy it immediately, or leave a request for the required model with the required characteristics.

Dealer is

The dealer carries out pre-sale preparation vehicle and its warranty service - completion during the warranty period period scheduled technical inspections (replacement of operating materials, diagnostics, warranty repairs, etc.)

Other types of dealer

Philatelic dealer - a company or person who sells postage stamps and philatelic products. They also include persons selling postage stamps for everyday use or official and stamp duty stamps for use on documents.

a person who sells works of art or performs intermediary functions in this field.

Switch dealer- a company specializing in the use of goods intended to repay balances in bilateral trade (clearing), in trade with third parties.

Sources

otvety.google.ru - Answers in Google

ru.wikipedia.org - Wikipedia - the free encyclopedia

mobilnik.ua - Mobile. UA Technologies are working for you

hr-portal.ru - Community of professionals

vocable.ru - National Economic Encyclopedia

sravnenie-brokerov.ru - comparison of brokers

jurgroup.com - Elines Group

banki.ru - Banki.ru

marketch.ru - Notes from a marketer

consultant.ru - ConsultantPlus

Investor Encyclopedia. 2013 .

Once upon a time - now a long time ago, in the 90s - in one radio program dedicated to foreign borrowings in the Russian language, the following ironic thought was voiced: “If our fellow citizens are still able to distinguish a leader from a dealer, then practically no one can distinguish a dealer from a killer.” . The years have not passed in vain: today no one will confuse a dealer with a leader, much less with a killer. But does everyone have a good enough idea of ​​what it is? professional activity dealer?

This word can mean two different types activities.

The dealer acts as a seller or distributor. This activity involves purchasing products in bulk and then selling them at retail. By purchasing goods in a certain volume, dealers thereby guarantee the volume of the sales market. The supplier provides a certain percentage of the dealer discount, this is the main source of profit for the dealer. The dealer discount percentage is determined by the amount of turnover.

A dealer should not be confused with a distributor. A distributor company, engaged in the resale of goods, trades them on its own behalf, and concludes purchase and sale agreements with buyers and sellers at its own expense. The dealer company operates in the market at the expense of the manufacturer and on his behalf, i.e. is in a closer relationship with him than the distributor. The distinction seems less clear sales agent and the dealer. Some experts generally equate these two concepts, while others believe that the agent enters into contracts on behalf of the manufacturer, and the dealer – on his own, but on behalf of the manufacturer.

Many manufacturing companies do not create products at all own network sales, but use the services of dealers for this. For the manufacturer this is very convenient and quite profitable.

In a number of cases, the manufacturer sets very strict conditions for the dealer company, regulating the dimensions retail space, standard reporting, obliging the use of the symbols of the supplier company.

The dealer must not only purchase, deliver goods and resell them, but create additional customer value for them. And here absolutely everything matters: consultations with specialists, and additional services, and the sale of related products (of course, the latter should not conflict with the dealer agreement - for example, related products should not be produced by a competing company).

Another area of ​​activity is a dealer in the securities market. Such a specialist acts on the securities market on his own behalf and at his own expense. This is how a dealer differs from a broker—an intermediary agent. The dealer (whether it is a company or an individual) independently carries out purchase and sale precious metals, currency or securities, investing your own funds in this business.