A couple of decades ago, the foreign word “dealer” was incomprehensible to the Russians, while in European countries it has long taken root.
With the development of the market, dealers in Russia gradually began to appear.
Who are they
Who are these people? In fact, a dealer is a sales representative of a company who purchases goods at a nominal value from a supplier and then resells it to the buyer with a mark-up. In other words, it is an intermediary between the producer of a product and its consumer.
Benefits
It should be noted that today many are interested in the question: "How to become a dealer in the region without investments?" The fact is that novice entrepreneurs are attracted to this type of activity primarily because it does not imply significant costs for business development.
Today, one can easily find in the media the following ads: “Work. Dealer in Moscow. " Many respond to them, because the supplier company provides all possible assistance and support in building a business and offers profitable cooperation programs. But not everyone is able to stay afloat.
Partnership options
Those who are haunted by the question of how to become a dealer in the region without investments should know that a manufacturer can offer several partnership schemes. Consider the essence of some of them.
Dropshipping
Dropshipping (trade on order) implies the following partnership option: the dealer independently searches for customers, places an order on the supplier’s website, settles with him for 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 investments?" must 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 products. After the agreed period, it will need to be paid, and the amount of the contract may increase by 2-3% compared with the situation if you made the payment in advance. In any case, the risk of burnout takes place. Do not meet the agreed time frame - be prepared to reimburse the supplier for the losses incurred. Only in case of 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 investments should be told about such a widespread variant of partnership as an official representative office. In this case, the distributor receives informational, advertising, consulting assistance, and in full. In addition to assisting in building a business, you will have a guarantee that the goods sold are in high demand among the consumer.
An official dealer is not required to engage in advertising - this is the prerogative of professionals. Undoubtedly, this option of partnerships has only advantages. In other words, an authorized dealer is protected from many risks.
Requirements that companies impose on potential dealers
It should be noted that suppliers prefer candidates who can boast of a stable financial position. In addition, they should have experience in building dealer networks. A potential sales representative must have a business plan in hand and be interested in selling those goods that are manufactured by the manufacturing company. Naturally, it is difficult for the dealer to work alone, so the selection of a professional staff is the first priority in building a business. In addition, the distributor must take care of the technical equipment of his outlet.
One way or another, but some investment in the business is still required.
Documents
The candidate for dealers must provide the company with a certain list of documents, which include: the charter, registration certificate, a document confirming tax registration, an order on the appointment of a manager (for commercial entities). You will also need an office lease agreement or a certificate of ownership of the dwelling where sales will be carried out.
As for individual entrepreneurs, it is enough for them to present a certificate of registration and a document indicating the TIN.
Before making the final decision to become a sales representative of the company, carefully study the market conditions. Please note that in some regions it is economically unprofitable to develop dealer networks. Define the circle of goods that are most in 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 product is in demand in the Kuban.
Be prepared for the fact that with a huge number of people who want to become an official distributor, suppliers can announce a tender, based on 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 in the development of the dealer network may be required.
Pay attention to the number of distributors in your area. As a rule, suppliers are more willing to cooperate when there are no more than one dealer in a particular area or region. Such tactics of behavior reduce the risk of competition and have a positive effect on doing business.