A distributor is an individual entrepreneur or an individual company purchasing large quantities of goods from a manufacturer for subsequent sale through agents or a regional market. The main task is to distribute products around the world and declare a partner as a reliable manufacturer of quality goods. This profession is not easy, and in fact, to understand what a distributor is, you need to at least work a little seller. This activity is very interesting, associated with communication, the ability to find a common language with a variety of people. The distributor has many different functions and responsibilities, which are no less interesting than what he sells.
Distribution activities
The distributor begins to fulfill its direct functions from the moment when it purchases goods from a manufacturer, most often a foreign one. Cooperation with foreign companies brings more profit and is of significant interest to new consumers, for example Russian. Previously, many did not know
what a distributor is, what great importance it has in the areas of
market relations, economic development and the sales sphere as a whole.
The distributor's work scheme is quite simple:
- purchase of goods at prices from the manufacturer;
- selling products through dealers and agents of other companies or the regional market as a whole;
- opening of an importing company in other countries.
Some examples from history
Back in the early 1990s, the unknown powder was reached by Russian consumers due to the fact that the producers of this instant ingredient, which makes it possible to obtain juice, knew what a distributor was. Thanks to this system, the company's leaders managed to make a fortune and distribute their products around the world.
If, after long and hard work, a company finally has an official distributor in Russia, it means that sales will be successful, because the Russian market is vast. The owners of large mobile companies, Apple Corporation, many cosmetic companies, etc. can boast of such examples.
Documenting
The distributor enters into an agreement with the manufacturing company, where the points of the sales rules, the territory covered, prices and much more are clearly specified. This is a great opportunity to create trade and economic relations with foreign companies, which are especially popular in the West. An importer company selling products in other countries on its own is a general distributor. When the supplier does not have the right to sell his goods to third parties, and the distributor must buy goods only from this supplier, then this is the exclusive distributor. And the territory for the sale of goods is strictly negotiated in the contract.
All rights and obligations of the parties are fixed by the distribution agreement. Then the distributor receives an appropriate certificate from the director general of the manufacturing company indicating the
type of intermediary company. Now, we hope everyone understands what a distributor is, what are his responsibilities and main mission.