First, you should understand why you need to distribute a foreign brand. Everyone thinks it's easy and simple. They rely on the success of Unilever and Procter & Gamble, not realizing that distribution is a big responsibility.
You need to realize that you will make money in distribution only in the long term, when you learn to negotiate with suppliers and form a customer base. You need to devote all your time to this. This cannot be regarded as an additional business.
Try the product
When you decide on the products you want to bring to the Russian Federation, it makes sense to order testers. Better yet, don’t skimp and spend 100-200 thousand rubles: get a visa to the country where the product is produced and go to the exhibition. Consider different brands, try it for yourself, talk to company representatives. We fly to such exhibitions every year.
Ask the right questions
When choosing a supplier company, I always pay attention to the quality of packaging. People are greeted by their clothes, so I always ask myself two test questions: “Do I want to use this myself?” Second: “Won’t I be ashamed to give this to a loved one?” If both tests are passed successfully, then the product can be considered. But it is important to remember that good packaging does not always mean good quality.
Next, it’s worth talking to the sellers, because when collaborating, you will communicate with them or with managers. If they are friendly and open, that's a plus. You can only evaluate the quality of products through personal examination; I test men’s cosmetics myself.
I bring product testers to Russia and consult with specialists. In our case, I distribute cosmetics testers to barbers with whom we cooperate. They all have a great understanding of the product and trends, and give good advice.
Select brand
Sometimes it is better to choose a product that is still unknown in Russia. It will be easier to enter the market with him. Customers are tired of tired and bored brands, and people are looking for analogues. At the same time, a brand with a big name most likely already has distributors in the Russian Federation, and if not, then its conditions will not be the most optimal.
How much to invest?
To become a distributor, for example, of an English brand, you will have to invest at least 2-3 thousand pounds (170-270 thousand rubles). This will be enough to purchase the first batch of goods. This way you can sell it quickly and test the market. Next, you need to understand whether the product is in demand and continue the business.
Proper shopping
You have two options for the development of events. The first is to try to invest about 4-5 million rubles in further purchases, depending on the scope of sales and the cost of a unit of production. You buy, bring and resell.
The second option is to negotiate with the supplier for deferment or implementation. It is possible to reach an agreement with a foreign supplier, even if the company does not yet have a recognizable name. But this can only be done with a personal visit to the supplier’s company. If you speak good English, have diplomatic skills and are close to European culture, this will not be difficult for you.
A lot depends on you here. It depends on how you understand the market, the product, how confident you are in yourself and your capabilities. All this is important when you negotiate with a supplier in person. I know cases where almost identical companies agreed on completely different terms with the supplier for an exclusive product.
One company received the product without paying anything and received a line of credit for the product for £30 thousand (2.7 million rubles), and the second itself paid the manufacturer 9-10 million rubles to get the exclusive.
How to negotiate profitably
A company that has its own actual production will offer you much more favorable conditions for deferments, sales and payments. If a company does not produce goods itself, but orders from other factories, then it most likely will not agree to such conditions.
At the same time, listen carefully to the supplier. If they tell you that exporting is not their main task now, but that the main goal is the development of the local market, you should not be under any illusions and fight against a closed door. Look for another supplier.
Clear goods through customs
The most difficult thing is to bring the goods to Russia. Here it is better to use the terms of a broker (a specialist in clearing cargo and goods at customs). He himself will check the documents, control the nomenclatures, and draw up declarations.
At the same time, when clearing products through customs, you are obliged to immediately pay customs duty on all goods and VAT on all imported products. You also pay for delivery and storage services.
Many companies are trying to save on customs and taxes, trying to somehow circumvent these issues. My recommendation - don't! Under no circumstances should you play with the state and taxes. Better form the right price, optimize your business processes and management structure. But you can't escape taxes. The legislative “correctness” of a business is its foundation on which you can calmly build your business further.
In general, there is no need to be afraid of difficulties. You shouldn't go into business if you like to complain. But if you are a stupid optimist, everything will work out.
Each of us has heard the word “distributor” many times, but not everyone has had to think about how to become a distributor. We are all looking for ourselves in this life, and the profession of a distributor presupposes freedom, including financial freedom.
A distributor is a trading company that purchases products from manufacturers on favorable terms and sells products on regional markets. The distributor company is the second link in the trade chain, it comes immediately after the manufacturer.
How to become an official distributor?
The secret of the distributor's profit lies in the fact that he works with manufacturers on the most favorable terms, receiving privileges and the maximum possible discount on products.
What are the responsibilities of a distributor? He must conduct active sales according to a well-chosen work scheme. The key to success will be energy, enterprise, and the ability to conduct and conclude profitable deals. Here is the main list of distributor responsibilities:
- active search for clients;
- conducting product presentations;
- signing contracts and concluding transactions.
What does it take to become a distributor?
Anyone who has the necessary natural qualities and has a burning desire to earn good money by working for themselves can master this profession. If you wish to become a distributor for a specific company and are already an individual entrepreneur, you must simply submit an application to the manufacturer. Attention, you should choose companies for cooperation carefully! Give preference to the most well-known companies with extensive experience, length of service, and a good reputation. Don’t be lazy to compare the terms of cooperation, calculate the benefits and economic effect, look for pitfalls. Choose the best, this is the only way you can get ahead of your competitors and offer your 
to potential customers the highest quality products at reasonable prices.
When your application is reviewed, you will receive a response. If the decision is positive, the company’s specialists will contact you and they will clarify all the details of the cooperation. Collaboration can be regular or remote. Normal cooperation takes place within one locality or district, and remote cooperation occurs within different regions or when searching for clients through a.
Now you know in more detail about how to become a successful distributor. Work, move forward, learn and act, and then success, luck and financial well-being will definitely become constant companions of your business!
How to become a distributor - who is he and what does he do + 7 detailed steps + recommendations for cooperation with foreign companies.
The concept of “distribution” is familiar to many, although this branch of activity is relatively new in post-Soviet countries.
But despite this, many are interested in the question how to become a distributor.
In fact, it is not difficult, but before choosing such a profession, you need to familiarize yourself with its features and operating principles.
Who is a distributor?
Before moving on to considering how to become a distributor, it is worth finding out who it is.
The word “distributor” is of English origin (distributor) and translated means distributor, distributor.
Speaking in the language of economics, this is an individual (in the form of an individual entrepreneur) or legal entity (enterprise) that purchases goods at low prices directly from the manufacturer for the purpose of their further sale to buyers, dealers or other sellers.
To put it briefly and simply, a distributor is between the manufacturer and the buyer or sellers.
There are several schemes for the movement of goods:
with one or more dealers
Manufacturing company → Distributor → Dealer → Retailer → End consumer
without a dealer
Manufacturing company → Distributor → Retailer → End consumer
direct sales (most often used in network marketing)
Manufacturing company → Distributor → End consumer
As you can see, in the chain of movement of goods from the manufacturer to the final consumer, no matter how long it is, the distributor will be in second place.
He can sell products to dealers, or he can immediately provide them to customers.
The main difference between a distributor and other intermediaries is that he is the official representative of the manufacturer and has the exclusive right to distribute products in a certain territory.
At the same time, a contract is concluded between them, which will describe the terms of cooperation, including the pricing policy.
The distributor's income, in turn, is a discount provided by the manufacturing company.
What types of distributors are there:
- general - has the fundamental right to distribute the goods on his own;
- exclusive - has the sole right to distribute the product in a certain territory. Most often, such distributors form a network of official dealers and sell goods through it.
One manufacturer may have several distributors, and those, in turn, may be representatives of several companies.
What is the difference between a distributor and a dealer?
Many people confuse a distributor with a dealer, because both act as intermediaries and sellers of goods.The main differences between them are not stated anywhere in law, because the terms of their cooperation will be specified in contracts.
But generally speaking, the distributor sells goods only in wholesale quantities, and the dealer most often works for small wholesale and retail.
| Criterion | Distributor | Dealer |
|---|---|---|
| Place in the chain of movement of goods | Second. He purchases goods directly from the manufacturer and can sell them to other intermediaries or end consumers. | Third. It purchases goods from distributors and sells them to retailers or end consumers. |
| Right to official representation | Only the distributor has the right to be an official representative, he acts on behalf of the company | Works on its own behalf, and therefore is more independent and mobile. |
| Purpose | Creation and development of a sales network. The distributor must constantly search for new dealers or retailers. | Sales and delivery of goods to the consumer as quickly as possible at a price favorable to the dealer. |
| Financial benefit | Most often, the price at which the distributor sells the product is indicated by the manufacturer himself. Thus, the representative receives a discount, which will be his income. | The dealer can independently set the price markup. Income will be the difference between the cost of purchase and sale. |
How to become a distributor and what does it do?
If you are asking the question: “How to become a distributor?”, then you should know what exactly he does:- expansion and expansion of the sales network;
- constant monitoring of the sales market;
- promotion, with whom he collaborates;
- searching for new dealers and retailers;
- conducting an analysis of demand for goods in your region;
- providing marketing services to dealers;
- when purchasing electronic or household appliances and equipment, installation, configuration and warranty service.
Step-by-step instructions on how to become a distributor
So, if you are interested in how to become a distributor, then you should know that an agreement will be concluded between you and the manufacturer, which is called a “distribution agreement”.
It will state:
- rights and obligations of both parties;
- conditions for the purchase and sale of goods;
- pricing policy.
Sometimes the manufacturer requires that the future distributor undergo a probationary period.
During this time, he can demonstrate his professionalism in the field of sales.
If everything goes well, the distributor receives a certificate from an official or exclusive representative of the company.
Now let's move on to step-by-step instructions on how to become a distributor:
For these purposes, you can use the Internet (social networks, thematic sites), outdoor advertising, and advertisements in local print media.
You will learn from the video what mistakes distributors often make in their activities:
If you are looking for an answer to the question: “ How to become a distributor?”, then decide for yourself how much time you are willing to devote to such activities.
Your income will directly depend on your desire to work.
If you are a student or a young mother, you can choose network marketing, in which case you will spend only half of your working day.
And when collaborating with large manufacturers who produce expensive products, you can have millions in turnover at your disposal.
Therefore, choose a direction according to your capabilities and get to work.
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Choose the direction you want to work in.
This could include food, household goods, household or electronic appliances, cars and much more.
To do this, analyze the market; perhaps some niches are not yet occupied, but there is demand for them.
Also consider new companies that are not yet present in your area.
To do this, visit thematic forums and post advertisements.
Passive search for buyers can be done by creating your own website.
Perhaps potential clients will find you on their own.
Travel independently around the region in search of sales points.
To do this, you need to take samples with you and travel around your region with offers of cooperation.
It is important to be able to use your communication skills here.
Create a marketing and sales department.
If you are not ready to work alone, then hire several good marketers and sales people who will have a client base in their track record.
For example, a mechanic may sell industrial equipment because he has specific knowledge in that sector;
- Find a suitable company and offer your services to it. The necessary information can be obtained on the Internet or from industry directories;
- Decide on the product range. For example, together with lifts for car repairs, you can offer consumers balancing stands, compressors and other equipment for car services;
- Enter into an oral or written agreement with the company;
- Study the product carefully to determine its commercial and technical advantages.
Advantages and disadvantages Before becoming a representative of a company in your city, you need to familiarize yourself with all the advantages and disadvantages of this profession. Pros:
- There is no upper limit on income levels.
Distributor of a foreign company in Russia: how to start a business not from scratch
The more efficiently you work, the more you earn;
- There are no competitors within the company;
- Support from a strong partner;
- Free education;
- Fast start.
- Lack of permanent salary;
- Large risks of losing start-up capital.
Where can I find a company? Interested in how to become a sales representative for a company? Many manufacturers post information about available vacancies on their own websites on the Internet. You can also send your resume to different companies.
Perhaps someone will respond and offer you cooperation. Try to collect as much information as possible about the activities of different companies.
This will help you choose the right supplier, on whom the success of your business depends 90%. You should not give preference to any supplier based on low prices.
How to become a manufacturer distributor
If you are given this opportunity, don't miss your chance!
- Conclude an agreement with a foreign company, according to which you will be given a certain time to sell the products, after which only you will have to contribute money.
- Enter into an agreement with a foreign manufacturer and collect orders from suppliers and dealers, that is, work on full prepayment.
A manufacturer can have any number of distributors, just as a distributor can have an unlimited number of suppliers. Also, you will need to correctly compose an email in which you need to indicate your work experience, the advantages of cooperation with you, the market situation in your country, opportunities for selling products in your region, etc.
How to become a distributor of a foreign company?
First of all, it will be necessary to study the specifics and basic conditions of work of a foreign company with distributors, as well as familiarize them with the peculiarities of Russian conditions. In this case, you will also need to make several foreign business trips and conduct presentations in a foreign language.
Important
Such negotiations and approvals require significant time and additional effort - you will have to independently study a lot of additional information, be prepared to explain a lot and convince partners of the economic profitability of the project, and negotiations will have to be conducted at the international level and according to international business standards. Here it is very important to competently prepare and conduct negotiations and presentations to foreign potential partners.
It is very important to study all the nuances of cooperation, prepare a competent business plan and presentation, and present a forecast plan for procurement and sales.
How to become a distributor: 7 detailed steps
Therefore, the responsibilities of the distributor include promoting the product on the market, expanding the target market and constantly searching for buyers. What needs to be done to become a distributor Those who are interested in this profession are primarily interested in how to become a distributor of a particular company.
To do this, it is necessary to conclude a special distribution agreement and receive an official certificate, which is certified by the general director of the manufacturing company. After this, you can begin to distribute the product, which the supplier provides to the distributor at the price that they agree on in advance.
However, the above is relevant for cooperation with large manufacturers, and if we are talking about the product of a company engaged in small business, then, most likely, you will first have to cooperate on a dealer basis, that is, completely purchasing the product from it.
How to become a successful distributor in your region
Based on the specifics of the product and the current situation on the market, a foreign manufacturer may have one distributor or several; this determines the main terms of the contract between the manufacturer and the distributor. The current market situation and the specifics of the goods also determine the conditions for organizing the dealer network and the intensity of the distributor’s work.
Some foreign manufacturers already have some kind of representative office or simply an office in the importing country, then establishing interaction with the manufacturer-supplier is quite simple, since company representatives are already well acquainted with the peculiarities of Russian business and it will be easier and faster for you to agree on everything with them . If a foreign company does not have any representatives in our country, then establishing contacts will require much more time and good command of a foreign language.
How to become a distributor?
This means that the buyer must deposit money for the goods into the seller’s account, after which, after a certain time, he will receive his purchase. If you look at it through the eyes of a businessman, the situation looks like this:
- The entrepreneur signs an agreement with the supplier for the purchase of goods at dealer prices;
- Displays the product for sale at its outlet, or rather, includes it in the price list and various promotional materials;
- The buyer pays for the purchase, after which you buy the goods from the supplier with the money received and transfer it to the buyer.
If you want to become a representative of a company in the region without significant financial investments, choose a market segment that includes goods whose cost ranges from 5-20 thousand.
rubles
How to become a distributor
Attention
You should also take into account all possible risks due to the unstable economic situation in the country, fluctuations in the exchange rate, etc. A foreign manufacturer will most likely give preference to a company that has its own warehouse, transport and a well-functioning work scheme.
In addition, you will periodically need to travel abroad and deliver goods from there, which also requires certain material costs. If the desire is still too great, try the following options:
- It is very rare, but it still happens that the manufacturer is ready to send free test samples of the product. This type of work is more typical for small young enterprises.
How to become an official representative of a company in your city?
It is also important to note that such contracts provide for the supply of goods on an advance payment basis. There may also be some additional conditions regarding the timing of the return of defective or non-marketable products and other restrictions.
In some cases, such a work scheme may not be very acceptable. In any case, whatever work scheme you choose for yourself, it is necessary to study in advance, negotiate and clearly state in the contract all the terms of the partnership.
How much money do you need to invest and is it possible to do without capital investments? In general, organizing any business requires at least minimal capital investments. If you do not have the opportunity or desire to make the necessary start-up expenses, then in this case, then offer your foreign partner to distribute the upcoming financial expenses between the parties or postpone them over time.
You need to realize that you will make money in distribution only in the long term, when you learn to negotiate with suppliers and form a customer base. You need to devote all your time to this. This cannot be regarded as an additional business. Try the product When you decide on the products you want to bring to the Russian Federation, it makes sense to order testers. Better yet, don’t skimp and spend 100-200 thousand rubles: get a visa to the country where the product is produced and go to the exhibition.
Consider different brands, try it for yourself, talk to company representatives. We fly to such exhibitions every year. Ask the right questions When choosing a supplier company, I always pay attention to the quality of the packaging.
