Distributors are the official representatives of the supplier

Currently, many of the largest corporations to arrange sales and delivery optimization of its own products to final consumers organize the distribution network, which includes some additional links, besides the standard ‘seller-buyer”. In particular, distributors are the direct representatives of the company engaged in shipping directly from the warehouses of the supplier.

If you look at the entire chain, which moves the finished products produced by large holdings, there are several main actors. These include, in addition to producing a product, dealers and distributors. This ensures a high degree of convenience for customers and enables to expand the geography of customers of the company. There are several key differences between these two representations. The dealer, in particular, is engaged in direct sales of goods directly to the consumer. Delivery of the products he carries an official distributor who in turn buys them directly from the manufacturer. Thus, the dealer has the ability to communicate with end buyer directly, carrying out as wholesale and retail trade. His capabilities allow him to study in detail the consumer market, identifying positive opinion on the proposed goods and negative. And the distributors is a company dedicated exclusively to wholesale sales that will ship products only to dealers. The task of the representative of this status is the global expansion of geography of sales of the manufacturer, search organizations that can bulk ship finished products.

To become a distributor, you will need to contract directly with the manufacturer of the goods. Normally, such agreement contains certain conditions, the implementation of which allows to obtain the desired status from the manufacturer. To them usually include such things as the minimum amount that will have to ship the representative monthly, and the payment options of the resulting product. Often the manufacturer provides a deferred payment, however it may be minimal and not exceed 3-5 days. In addition, the company that manufactures their own products, officially entitles its representative to use registered brand of goods, advertising materials and any other benefits, ensuring the distribution of goods to various regions.

Thus, distributors are the official representatives of the supplier with the opportunity to make a shipment directly from the manufacturer, and possessing certain privileges in use of the goodwill of the company in respect of traded goods. Its main objective is the expansion of the geography of the customer base in the ship in the framework of a distribution agreement of the products, searching for new dealers and points of sale.