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How to make money as a distributor?


In this article, we will talk about how to make money as a distributor, that is, an official representative of the manufacturer of something. Usually this specialist is engaged in the sale of goods in bulk to stores, in some cases – to the final consumer.

The distributor most often works in the B2B segment, and the complete sales chain looks like this: manufacturer, distributor, dealer, consumer. In some cases, an additional link appears – a retailer.

Distributor Responsibilities

The duties of a distributor can be very different. If he works with small quantities of goods, he can do it alone. Therefore, if the company is large, a whole staff of employees will be required. The distributor receives income from the difference between the purchase and sale prices.

Sometimes a whole company acts as a distributor. For example, if the product is complex: expensive brands of cars, equipment. Moreover, not just a staff of employees, but entire departments will work. For example, marketing department, call center, etc.

The current responsibilities of a distributor most often include:

  1. organization of an advertising campaign for a product;
  2. conclusion of transactions with buyers;
  3. transportation and delivery of products;
  4. establishing logistics;
  5. control of warehousing and storage of products
  6. adherence to manufacturer’s quality standards.

As you can see, you need to have a fairly large number of skills. In addition, you will need to conclude a special agreement with the manufacturer and obtain a certificate of the right to represent the brand.

This document will indicate the order of purchases, prices of goods purchased from the manufacturer, return conditions, and so on. Below is a step by step guide on how to become a distributor.

How to become a distributor

If desired, anyone can become a distributor. Of course, for this you will have to try. For example, analyze the market and take the time to find manufacturers.

1 Decide on a niche

First, try to understand what types of products you are interested in. It is desirable that you are well versed in this. You may have worked in some industry before. For example, in order to promote machines or equipment, it is advisable not to start from scratch.

2 Analyze the situation

Secondly, look at the market from the outside. Assess the demand, identify the offer and draw conclusions. For example, some of them will be the most successful. Think about what kind of goods the consumer wants to buy. Find out which ones don’t work.

3 Find a manufacturer

When thinking about how to make money as a distributor, pay special attention to the choice of partners. Of course, it is worth exploring websites, catalogs, exhibitions or forums. You will probably find a new company interested in promoting.

4 Agree on cooperation

Compose a commercial offer with all the basic information about you. As a result, issue an IP, rent an office and a small warehouse. This will help you find partners easier and faster.

7 Sign an agreement and become an official partner

In conclusion, carefully read all the documents and get to work. Agree on everything from the very beginning to avoid problems. For example, the manufacturer can change prices without warning.

Post source: kakzarabotat.net

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