The goal of any manufacturing company is to sell at a profit! But this can only be done by expanding your market.

It is for this purpose that contracts are concluded with trading enterprises or entrepreneurs who undertake to sell the products of manufacturing companies outside the location of the manufacturer itself.

And such sellers are called dealers.

Dealer: who is this?

In the understanding of many, a dealer is a simple intermediary who acts on the basis of...

But this is not entirely true: a dealer is a company that, at its own expense and on its own behalf, makes wholesale purchases from the manufacturer of its products and sells them.

A dealer can be either an entrepreneur or a legal entity. In this case, all risks associated with sales are borne by the dealer. However, it has advantages, one of which is complete lack of competitors in a specific city or even region for a specific product. This advantage is given to the dealer by the official representation of the manufacturer.

At the same time, she herself dealer company can:

• engage in both wholesale and retail sales;
• present products from both domestic and foreign manufacturers;
• engage in direct sales and accept applications for the supply of products, having only a showroom.

Despite the fact that the dealer company actually purchases products from the manufacturer, it cannot simply be called a “reseller”, since it works closely with the manufacturer itself, purchases goods directly and has a document from the manufacturer notifying consumers about the supply of the products offered to them from the factory. manufacturer.

By the way, what distinguishes a dealer from companies working on .

• he is not obliged to follow the manufacturer’s recommendations for advertising and promotion;
• can replenish its assortment with products from another manufacturer;
• and does not pay any commission to the manufacturer for the use of its name.

That is why many consider this format of work as an excellent way to start their own business.

A way to start your business from scratch

Yes, becoming a dealer is real profitable.

However, with this way of working there is its own nuances things to consider:

• the dealer is responsible for his actions, decisions made and losses incurred;
• to become a dealer, you will need not only to conclude an agreement with the manufacturer, but also state registration either as a legal entity (more often this is) or an entrepreneur (). Otherwise, no one will enter into an agreement, even if the proposed market is very promising. The fact is that cooperation with a simple individual is fraught with certain tax consequences and obligations that no one wants to shoulder;
• In addition, it is very important to know the product that the dealer will be dealing with. For example, if you are going to sell tools, you need to have an understanding of all their capabilities and technical characteristics in order to be successful.

But there is more one group of nuances that need to be clarified at the stage of concluding an agreement with the manufacturer:

1. payment procedure – prepayment, installments, payment after sale and other forms;
2. availability of a deposit, i.e. advance payment;
3. delivery – who is responsible for the delivery of products to the place of sale and the safety of the cargo for this period;
4. return of products in case of damage or defects;
5. presence or absence of a dealer in the same territory;
6. the presence of restrictions on the trading platform, price, etc.

These are important points that need to be taken into account when starting your own business, which indeed has not only advantages, but also disadvantages.

For an example of a dealer offer from the manufacturer of heating systems Daewoo Enertec, see the following video:

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Advantages and disadvantages of doing business this way

First of all, the dealer, as a rule, has no competitors for this type of product in a specific territory. And such exclusivity expands its sales opportunities and provides access to new products and the entire range of products of this manufacturer before others. In addition, the higher the dealer's turnover, the higher his discount from the manufacturer from the price. This difference provides a solid income for the dealer company.

Despite the fact that the dealer works on his own behalf and at his own expense, the main trump card of his sales is direct deliveries from the manufacturer.

And this for the consumer it means:

• a real factory-made product, not a homemade one;
• the price is recommended by the manufacturer itself (if provided for in the agreement with the dealer), which means it is low;
• availability of warranty and post-warranty service;
• repair using factory components;
• the ability to return the product without problems.

But such closeness to the manufacturer is fraught with its own shortcomings:

• the manufacturer can dictate the price tag, sales procedure, conditions of use;
• the dealer is obliged to buy back a certain volume of products, even if he does not sell that much;
• If the contract provides, the dealer may be limited in adding products from another manufacturer to the assortment.

However, as a rule, all these inconveniences are covered by large discounts, which the manufacturer is obliged to give when increasing the turnover of its products.

How do you become an official dealer?

Of course, to become a dealer, required not only state registration:

1. knowledge and experience in sales;
2. the ability to analyze demand and the market and know their condition in relation to one’s territory;
3. developed by dealer;
4. stable financial condition;
5. professional accounting and absence. Very often, manufacturers require certified copies of declarations (, etc.);
6. availability of those who have the necessary qualifications to work with the manufacturer’s product; or its availability from the entrepreneur himself;
7. interest in the product and its knowledge.

In addition, you need to draw up a commercial proposal, attaching your business plan to it, and send it to the manufacturer. However, this proposal must be correct not only from a spelling position, but also from a marketing position. Then it will be able to convince the manufacturer of the competence of the future dealer.

Do you want to become a dealer?

Now there is a large selection of dealer offers made by the manufacturers themselves, and, in any areas. For example:

1. auto products represented by such manufacturers as "PROMA wheels made of light alloys", "Expedition", "KAMSKY MOTOR PLANT", "Kurgan trailers", "Auto Technology Group", "Togliatti trailers", "Avtonota", "IRON MANUFACTURE URAL", " VMPAUTO", "Rossvik", "Volga Tire Company", "MOTORFIST", and others;
2. interior and entrance doors – “Cardinal”, “Vivo-Porte”, “Pharaoh”, “League of Doors”, “Euro-Doors”, “PROFF”, “Wood Products Plant”, “RosDver”, “Art Deco”, “Dera”, “Kontur” ", "DOOR FACTORY", "Cabinet Doors", "Torex", "LineDor", and others;
3. blinds - “Stroy-Life”, “RUPAN”, “Decor - CITY Ural”, “New Blinds”, and others;
4. furniture, furniture materials and accessories – “Involux”, “Cozy House”, “Ivanovo Furniture Factory”, “Somovo-Furniture”, “Geniuspark”, “BELKUKHNYA”, “Kadici”, “L-furniture”, “NOVA”, “RONIKON”, “Ikhsan” ", "Furniture Factory 8 March", "Furniture Symphony", and others.

And this is only a small part of the current offers!

An example of dealer cooperation from a car oil manufacturer is given in this video:

Just a couple of decades ago, the foreign word “dealer” was incomprehensible to Russians, while in European countries it has long taken root.

With the development of the market, dealers gradually began to appear in Russia.

Who are they

Who are these people? Essentially, a dealer is a company that purchases goods from a supplier at a price and then resells it to the buyer at a markup. In other words, it is an intermediary between the manufacturer of a product and its consumer.

Advantages

It should be noted that today many are interested in the question: “How to become a dealer in the region without investment?” The fact is that novice entrepreneurs are attracted to this type of activity primarily because it does not involve significant costs for business development.

Today you can easily find advertisements in the media with the following content: “Work. Dealer in Moscow." Many people respond to them, since the supplier company provides all kinds of assistance and support in building a business and offers profitable cooperation programs. But not everyone manages to stay afloat.

Partnership options

Those who are haunted by the question of being in the region without investments should know that the product manufacturer can offer several partnership schemes. Let's look at the essence of some of them.

Dropshipping

Dropshipping (trade to order) involves the following partnership option: the dealer independently places an order on the supplier’s website, makes payments to him for the goods on his own behalf, having previously received an advance payment from the buyer.

Goods for sale

Those who are interested in the question: “How to become a dealer in the region without investment?” should know about the second common option for cooperation - goods for sale.

Its meaning is that the sales representative is given a specific period of time during which he must sell the product. After the agreed period, it will need to be paid, and the contract amount may increase by 2-3% compared to the situation if you had paid in advance. In any case, there is a risk of burning out. If you fail to meet the agreed time frame, be prepared to compensate the supplier for losses incurred. Only under force majeure circumstances can you accept unsold goods back.

Official representative

And, of course, those who want to learn how to become a dealer in the region without investing should be told about such a common partnership option as an official representative office. In this case, the distributor receives information, advertising, and consulting assistance, and in full. In addition to providing assistance in building a business, you will have a guarantee that the goods sold are in high demand among consumers.

The official dealer is not obliged to engage in advertising - this is the prerogative of professionals. Undoubtedly, this type of partnership has only advantages. In other words, the official dealer is protected from many risks.

Requirements that companies place on potential dealers

It should be noted that suppliers give preference to candidates who can boast of a stable financial position. In addition, they must have experience in building dealer networks. A potential sales representative must have a business plan in hand and be interested in selling the goods that the manufacturing company produces. Naturally, it is difficult for a dealer to work alone, so recruiting a professional staff is a top priority in building a business. In addition, the distributor must take care of the technical equipment of his outlet.

One way or another, some investment in business will still be required.

Documentation

A candidate dealer must provide the company with a certain list of documents, which includes: a charter, a registration certificate, a document confirming tax registration, an order for the appointment of a manager (for commercial structures). You will also need a lease agreement for an office or residential premises where sales will take place.

As for individual entrepreneurs, it is enough for them to present a document indicating the TIN.

Before making the final decision to become a company, carefully study the market conditions. Please note that in some regions it is not economically profitable to develop dealer networks. Determine the range of products that are in greatest demand in your area and enter into agreements with those companies that produce them. In particular, many dealers in Krasnodar are engaged in car sales, since this particular product is in demand in Kuban.

Be prepared for the fact that with a huge number of people wishing to become an official distributor, suppliers may announce a tender, based on the results of which the most suitable candidate will be selected.

Please note that the larger the manufacturing company, the less likely it is to meet the criteria, since significant investments may be required in the development of the dealer network.

Pay attention to the number of company distributors in your region. As a rule, suppliers are more willing to cooperate when there is no more than one dealer in a particular region or region. This behavior tactic reduces the risk of competition and has a positive effect on business.

After completing this game just once, you will learn how to create viable business ideas from scratch.

*Calculations use average data for Russia

What are the pros and cons of different ways to find potential dealers and wholesalers? We select the most effective methods for creating and expanding a dealer network.

Sooner or later, any entrepreneur seeking to develop his business comes to the conclusion that the market in one region has a limited number of consumers. One of the most cost-effective ways to expand sales channels is to create a dealer network. But the question arises, where and how to find dealers? And, most importantly, what methods will give the greatest return? Below we have presented the 12 best ways to find and attract dealers.

1. Take part in exhibitions

pros

Qualified industry dealers always take part in specialized exhibitions. Thanks to exhibitions, you can reach professional resellers with extensive experience and clearly advertise your product.

Minuses

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The main disadvantage of exhibitions is that they happen infrequently and not everywhere. To visit them, you often have to travel to other cities and regions, incur transportation and time expenses, not to mention the colossal expenses for participation itself and the design of the presentation area. For information on how to take part in such events on a limited or even zero budget, see this material.

2. Post an advertisement looking for dealers

pros

The simplest, fastest and free way to make yourself and your product known is to place online ads on one of the popular classifieds sites. Here you can also try to find people who want to become dealers by looking at advertisements like “I will become a dealer” or “I will become a sales representative”, and offer them your conditions.

Minuses

The main disadvantage of placing an ad is that the very fact of placing an ad in the style of “We are looking for dealers” will indicate that your intentions are not serious. They don’t look for worthy partners this way. Get ready for a lot of calls from people “off the street” who will in no way meet your requirements. Do not forget that advertisements need to be constantly updated, since sites usually limit the posting time.

3. Post information in online catalogs

pros

Manufacturers have the opportunity to create free pages with information about their company, products and services, news, promotions and leave requests to find dealers. Unlike publishing advertisements, the information is posted by the service administration. Catalogs are one of the most common channels used by dealers and those who wish to become dealers after mastering a new type of activity. Catalogs are a passive but mandatory channel for finding dealers.

Minuses

Your information may go unnoticed among a huge layer of advertisements from other companies. Your business proposal will simply be in the general list and without additional payment you will not be able to distinguish it from others of the same kind. You can only wait for calls that may not come at all.

4. Post information on business forums

pros

Typically, companies developing a dealer network use thematic forums in two ways. The first is to simply place an ad with information in a special advertising topic for searching for dealers. The second option is to advertise your product in other topics in some cunning way, risking getting banned. For example, a company representative can “pretend” to be a novice businessman, describe the first steps of his business and, as if by chance, mention the equipment he uses and its advantages. In any case, unlike advertisements, on the forum you have the opportunity to describe your offer in more detail, showing all the advantages.

Minuses

Be prepared to respond to reactions and possibly criticism to your information. Forums are just forums because you can write almost anything on them. There is also a danger of entering into an unfavorable debate with a competitor.

5. Attract competitor dealers

pros

If you know for sure that the quality of your product exceeds that of competitors, you can contact the dealers of this company and offer them your terms. Finding contacts is easy - most often they are listed on the distributor's website. Paying customers will definitely be interested in your offer, and more favorable conditions, including discounts, the first trial batch, and so on, can convince them to change the supplier.

Minuses

Of course, most dealers will refuse to change a ready-made supplier. In addition, a large investment of sales people’s time will be required in negotiating, justifying benefits, etc.

6. Reach dealers through cross-selling

Pluces

It is often worth looking for potential dealers not where it seems at first glance, but somewhere nearby. For example, it is not necessary to look for dealers of computers and laptops among sellers of computers and laptops in a specific region. It is possible that the interested party will be a dealer of printers, copiers and MFPs. Thus, the main advantage is reaching a client with knowledge in this area, real sales experience and the availability of capital resources.

Minuses

Easy to find, hard to sell. Such dealers may have increased requirements for the terms of cooperation, and your offer will most likely not be considered seriously, but as additional income, which you can refuse at any time.

7. Make cold calls

Pros. Finding contacts on the Internet is not so bad. The main task is to make cold calls. It is cold calls that provide relevant contacts of people involved in assortment policy, to whom a commercial offer is sent. Apart from the costs of paying sales staff and telephony, the company usually does not incur any additional expenses.

Minuses. The need to develop a competent and presentable commercial proposal, sales scripts, and the need to attract professional sales managers.

8. Set up contextual advertising

pros

Minuses

Ready ideas for your business

Unfortunately, if earlier, in 2014-2015, contextual advertising was undoubtedly considered the most effective tool, bringing companies a large number of applications at a cost per click of several rubles, but today the return on this channel has decreased significantly. First of all, we are talking about those areas where there is oversaturation of the market, for example, the market for plastic windows, suspended ceilings, building materials, and so on. For these types of businesses, the cost of a click in Yandex.Direct in large regions can reach up to 3 thousand rubles. In addition, to set up good contextual advertising, you need to spend a lot of effort, analyze competitors’ advertising, create a USP for the most pressing requests, and carefully select keywords so as not to engage in “heating the street.” And it is not a fact that the help of “specialists” will be conscientious.

9. Order advertising on federal media

pros

A dealer network implies the company’s expansion into other regions, which means that if you start an advertising campaign, it should be carried out at the federal level, and not at the regional level. By addressing federal media that work on your topic, you make yourself known throughout the country and create a name for yourself in the eyes of potential dealers from other regions. Advertising in federal media will bring the most benefits if you present a new technology or product and are developing a new market with a low level of competition. It is not advisable to reach this level of advertising with an ordinary offer.

Minuses

The first disadvantage is the high cost of advertising, regardless of whether we are talking about banner, native or any other advertising. For example, posting an article on the RBC website costs from 160 to 300 thousand rubles, writing an article costs from 180 to 400 thousand rubles, placing billboards costs about 165-190 thousand rubles/month. The second and key drawback is that no one carries out a targeted search for dealers in the federal media; they are used as image platforms.

10. Advertise on business guide websites

pros

On websites for aspiring entrepreneurs dedicated to starting their own business, such as a website, a company can get access to a potential partner who has both material resources and the desire to start their own business in a specific area of ​​dealership. Advertising is possible in the format of a catalog of offers for dealerships and franchises (along with the largest network companies), and in the format of an article with a presentation of the offer, and in the form of banner advertising. The main advantages of placement are the opportunity to reach the federal level of advertising on a budget compared to federal media (savings on banner advertising up to 80%), to receive a large number of warm incoming applications at a minimum cost per click and powerful image advertising directly among those people who are going to open or expand their business, and don’t just read business news (more than 1 million banner impressions for the target audience per month).

*according to information from commercial offers provided by the media

Minuses

Ready ideas for your business

Often, this is a lack of experience in the required field for those who want to become a dealer, which, however, is compensated by keen interest on the part of the potential partner. If we are talking about advertising in the catalog, then the company will definitely need a person who is constantly involved in processing incoming applications and consulting with interested entrepreneurs.

11. Send mailings to a database of potential dealers

pros

A potential dealer may refuse to cooperate with you, but this does not mean that his contacts should be lost. Time passes, management changes, the market changes. The newsletter is effective in that two or three times a month or more often you can remind potential partners about yourself, sending them not only information about the company with a product catalog, but also articles on your topic. This could be analytical information about the market situation or some practical advice. A meaningful newsletter will definitely work to increase the loyalty and image of the company.

Minuses

The newsletter cannot become the main channel for attracting customers. Even extremely useful content will not guarantee you a high open rate, since the mail of most companies is already overloaded with corporate letters. In addition, you will need to take care of the actual creation of this content, either doing it yourself and acting as an expert, or burdening the sales department or hiring a remote employee.

12. Start a video channel on YouTube/conduct webinars

pros

Large audience reach: more and more people perceive information better through video, and this fact cannot be ignored. In webinars or on your YouTube channel, you can talk in detail about the terms of cooperation and reveal many business issues, from the specifics of your products to sales scripts. As a result, with one hand you maintain the loyalty of existing dealers and work on your image, and with the other, you attract new counterparties to your business who are interested in this area.

Minuses

The amount of time and money spent on developing a YouTube channel or recording webinars does not guarantee you any percentage of return. Most of the most successful channels exist on the sheer enthusiasm of their creators. The presentation of information must necessarily take place in a live format, with feedback, communication with subscribers, with uncomfortable questions, and so on, and all this requires not only great knowledge in one’s field, but also time.

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