How to become an official dealer. Dealer activity: features of earnings and possible risks. Where can you work

"There is nothing more criminal than coming up with a great idea, but not implementing it," says Donald Trump. If you dream of your own business (a beauty salon or something else), financial independence, nothing should stop you, even the lack of start-up capital for business development. When there are a lot of ideas for building your own project, and the financial situation is not the best, you can try to become a dealer.

What is a dealer?

A dealer is an agent of a manufacturing company, who acts as an intermediary between the manufacturer of a certain product and a person who wants to buy it, an individual or legal entity.

In Russia and other countries, there are manufacturers who do not have their own sales offices and wish to sell their goods through dealer networks. Such cooperation is beneficial for such companies. They do not need to spend money on opening retail outlets. With minimal costs, they can quickly communicate their product information to a large circle of potential buyers.

Dealers are divided into several categories depending on the field of activity. There are intermediaries working on the stock exchange. They are participants in the securities market. Another type buys certain products in bulk and sells them to retail customers. There are representatives of large enterprises, for example, car holdings, which find buyers and receive a percentage of sales. If you decide to become a dealer, first of all decide what area you want to work in.

Becoming a dealer for a manufacturer is not just about representing the products of a certain company, it is being its regional face (for example, a manufacturing company). Dealer sales consist of the following stages:

• discussion of cooperation issues, current prices, percentage of sales, etc .;
• make a deal;
• sale of related products of the plant;
• provision of additional services (maintenance, installation, transportation from the factory).

Becoming an exclusive dealer of a manufacturer means getting the right to single-handedly represent the company in a certain region. This status gives privileges in partnership, as the representative gets rid of competitors, receives special financial conditions.

To become an intermediary is to take an intermediate place in the chain "producer - end consumer". Its main role is to find a buyer and complete a deal.

How to become a dealer of a manufacturer?

In order to become a dealer, you need to determine,. But the choice of a manufacturer is far from one criterion. In order to become an official representative of the plant, you need to prepare.

Qualities required to work as a dealer

Practice shows that not all people can become a dealer, as well as, and reveal themselves in the field of trade. Experts have identified a number of qualities that a person should have:

1. activity;
2. sociability;
3. the ability to negotiate, persuade;
4. stress tolerance;
5. initiative;
6. competitiveness.

If you see the above qualities in yourself, you can try to realize yourself in this area and become a dealer.

Advice: when negotiating, you must "radiate confidence", since the main task in this activity is to convince that the offered products are of the highest quality.

If you are trying to establish cooperation with a representative of a store or other retail chain, convince him that if you take the product for sale, it will literally be swept off the counter. To do this, you need to be persistent, be able to present the product, indicate its advantages and benefits for the buyer.

It's important to be prepared for rejection. Bad deals are an integral part of being a dealer. Here it is important not to get upset, to analyze the mistakes made during the negotiations and move on, looking for buyers.

Required documentation

To become a dealer of a manufacturer, you need to prepare a package of documents, since this business is serious and can bring a lot of money.

In most cases, large manufacturers require the following conditions to be met to sign a partnership agreement:

• you must be a legal entity;
• presence of an office;
• conclusion of a mediation agreement.

For cooperation, you must also provide:

1. passport data;
2. charter (if you are a legal entity);
3. memorandum of association;
4. certificate of tax registration;
5. certificate of state registration;
6. ownership or lease (sublease) agreement for non-residential premises where the place of sale will be organized;
7. bank details.

The list of documents may differ depending on the requirements of the manufacturer. If you plan to work in the automotive business, you need to provide a permit to sell vehicles from the traffic police.

Description of activities

After signing an agreement on cooperation in a certain region, it is necessary to draw up a promotion strategy, a development concept.

At the first stage, analyze the market in the assigned territory, the level of demand and options for promoting products. Determine ways to optimize sales, how to interest a potential buyer. Do not disregard your competitors, monitor their work.

After that, you need to try to form your customer base. To do this, make a list of companies that may be interested in the product being sold. Before making an appointment with potential clients, inquire about them as much as possible, develop a negotiation technique. The broader the customer base, the higher the income level.

If you want to become a dealer from a prestigious company, a large factory, you need to overcome the competition from other job seekers. In order to have an advantage over them, you need to consider a number of factors.

First, they pay attention to the experience in this area. Secondly, a lot depends on the region of placement. If a representative applicant wants to become a dealer in a city that is saturated with regional representatives of this company, most likely he will be refused. If the manufacturer does not have a representative office in the specified area, he is more willing to agree to cooperate. The accumulated client base is especially appreciated. Also, the decision on partnership is influenced by:

• reputation;
• availability of a technical base, premises for work;
• the ability to attract qualified personnel;
• the possibility of warranty service.

How much money do you need to invest?

Investments are required to conduct intermediary activities. To become a dealer for a manufacturer does not require the same amount of capital as, for example, building. But most often investments in the chosen project are needed.

It is difficult to name a certain amount, it all depends on the manufacturer. But if you manage to agree with the manufacturer on the receipt of goods for sale, you can avoid large investments. You will be able to pay after the sale of the product, but the price in this case will be higher than with a prepayment.

If you have the opportunity to pay for the goods immediately, then the amount of investment will largely depend on the type of product, the volume of the purchased batch. It is also worth including in the business plan the costs of transportation, rental of warehouses, office space, recruiting, legal and accounting services.

How to become a dealer without investment?

If you have not managed to collect the start-up capital, you can become a dealer without investment. There are several ways to do this.

Sales of products to order

Perhaps, looking through the price lists for a certain product, you had to see the mark “On order” opposite the line “Price”. This means that first you need to deposit money into the specified account, after which it will be transferred for use. The algorithm for executing this scheme is as follows:

• the manufacturer signs a contract with the supplier to supply products at dealer price;
• products are put up for sale at the dealer's point of sale (not the product, but the name of the unit in the price list);
• the buyer makes an advance payment, which makes it possible to purchase goods from the manufacturer;
• the purchased item is sent to the buyer, who in turn deposits the rest of the money into the dealer's account.

The indicated scheme is suitable for goods of the middle price category. Each person will buy inexpensive products in the nearest store, albeit at an inflated price, but without waiting. For items that are too expensive, an office or store is needed. For example, car resellers rent large areas for showrooms.

Provision of goods for sale

Today, many manufacturers provide their goods for a specific time, during which the reseller must sell it. After the end of the agreed period, the products must be paid for, and 1-3% higher than if the dealer paid without installments. The possibility of return is prescribed in the contract. Most often, if the goods are not fully sold, the full cost has to be paid, which increases the risk of financial losses for the intermediary.

Free testing

In some cases, the manufacturer agrees to send free samples of their products, which help to test them, present them to potential buyers. For an intermediary, such a scheme is extremely beneficial, but, unfortunately, today manufacturers rarely agree to work on it.

If the idea of \u200b\u200bbecoming a dealer doesn't suit you, think about

In almost every successful company there comes a period when it is necessary to expand the geography of sales in order to increase the number of consumers of manufactured products and make a profit. At this stage, the company initiates the search for a person who could perform the functions of promoting goods in a certain region of the country or abroad.

We are talking about a dealer - a legal entity or an individual who purchases the company's products on special conditions and at wholesale prices for their subsequent sale at retail or in small wholesale. This is the so-called intermediary between the manufacturing plant and the buyers (other intermediaries).

Taking into account the fact that the dealer is the largest wholesale buyer, he is endowed with exclusive rights to the product, purchasing it with all kinds of discounts at the lowest prices.

Such conditions are beneficial, including for the manufacturing plant, which, in addition to increasing the volumes, also receives a representation of products in an undeveloped region, plus the opportunity to shift some of the important organizational issues to an intermediary.

Selection criteria

Collaboration with a large company presupposes the dealer's ability to withstand competition from other applicants for this niche.

When choosing a dealer, companies pay attention to:

• presentation of the enterprise (photographs, infrastructure, characteristics of activities, etc.);
• experience in this area and the presence of a developed client base;

• region of residence (business) and ownership of the situation in this region: knowledge of the capacity of the region in services and products; the concept of the constituent shares of the main sellers in the market; having an idea of \u200b\u200bthe activities of competitors; availability of knowledge about key customers in the market plus maintaining communication with consumers on an ongoing basis;
• financial stability, readiness for investment (construction);
• availability of a technical base and a staff of qualified employees;
• interest in promoting products;
• favorable location of infrastructure facilities for potential clients, including proximity to major highways, convenient access road, etc.

The standard time frame for consideration of applications and making a decision varies from one to one and a half months.
If the decision in favor of one or another official dealer is positive, a dealer (service, distribution) agreement for six months is concluded with the latter (considered as a trial period).

Opportunities for business performance

Representation of the manufacturer for the agents of the dealer network means great opportunities used in order to ensure the efficiency and profitability of the business.

It:

• receiving discounts from the list prices plus bonuses for the worthy fulfillment of dealer obligations;
• guaranteed centralized delivery of goods to warehouses;
• additional training for specialists in service, sales and marketing;
• participation in special leasing programs, including the possibility of leasing equipment for service centers.

In addition, when carrying out activities, the dealer receives from the manufacturer full marketing, technical and advertising support (provision of advertising products, technical literature, organization of exhibitions, etc.).

Required documents

If you are interested in an offer to become an official dealer of any manufacturer's plant, you may be asked to prepare certain documents.

Namely:

• documents confirming the status of an independent legal entity in the proposed region;
• a completed application form plus an assessment sheet, which contains information about the company, its location, sales, team and readiness to invest;
• business plan within the framework of work with the manufacturer, taking into account the above aspects.

These documents are usually sent to the representative of the dealer network development bureau. Further, the applicant will be provided with more detailed information related to the requirements imposed on the subjects of the dealer network of the manufacturer, as well as a list of mandatory documents, the presence of which is mandatory for consideration of the application.

Start-up capital and the availability of required infrastructure elements

There is no unambiguous wording to answer the question about the dealer's starting costs. It all depends on the manufacturer and their requirements, the scheme used and the dealer's own developments. For example, if you intend to become part of the dealer network of KAMAZ PTC, you need to be ready to invest in maintaining working capital for the purchase of products. This is about 10-12 million rubles for cars and exactly the same amount for spare parts.

Even at the initial stage, it is necessary to provide 5 million (up to six months) and 12-13 million rubles over a period of one and a half years for the development of the infrastructure of the dealer center.

If you manage to agree with the manufacturer regarding the receipt of products for sale, you can avoid large investments and pay off with the company after you sell the goods.

However, the price with such a scheme will be an order of magnitude higher than if you paid the fee immediately.

If you are ready to pay for the goods immediately, the amount of investment will depend on the volume of the purchased batch and the type of goods.

In addition, you will need to take care of the presence of mandatory elements of the dealer infrastructure in the intended region (taking into account the declared status).

You will need:

• protected area for the reception and storage of products;
• storage facilities with conditions for loading and unloading;
• service center under management, ready to carry out all operations;
• office space for sales and purchases for staff plus a recreation area for customers.

The considered type of activity has many pitfalls, requires certain personal qualities and the fulfillment of a number of requirements of the manufacturer. At the same time, this is a very interesting and profitable activity, in which success can be achieved only with a competent and balanced approach.

If you are hatching the idea of \u200b\u200byour own business, then this article is for you. The idea outlined in this article will be especially interesting for those who want to start their own business, but do not have the financial resources for this. We will tell you how to become an official dealer.

A bit of theory

Most, even fairly large manufacturers, do not have their own sales offices in most regions. They prefer to sell their products through an extensive network of dealers. For the manufacturer, this form of cooperation is quite beneficial - there are no costs for opening their own points of sale. Thus, at a minimum cost, the manufacturer gets its representative offices in the regions.

Now let's figure out who the dealer is. The word "dealer" has a definition - it is an intermediary between the manufacturer and the end customer, acting in the interests of the manufacturer.

Depending on the area in which the dealer works, they are divided into several categories:

• participants in the stock market;
• participants in wholesale purchases for the subsequent sale of goods in small wholesale or retail;
• car dealers who receive interest on the cars sold.

To become an official representative of a manufacturer in the region is not only to get the opportunity to sell products at the best prices, but also to be, so to speak, an official representative of this manufacturer in your region.

In general, the work of a dealer can be divided into several stages:

• negotiation part - discussion of prices, working conditions, and the like;
• signing a contract;
• sale of the main product of the manufacturer;
• implementation of additional services and related products - warranty and post-warranty service, transport services, sale of spare parts and the like.

Being an exclusive dealer in your region is a very profitable business. Not only will you be able to represent the manufacturer alone in your region, but you will also be able to attract many buyers by offering the best prices. It will be much easier for you to deal with competitors, as your conditions will be more beneficial for buyers.

What is needed to start

Before you become a dealer of a company, you need to clearly define what you want to sell and how profitable it is. In addition, there are criteria that a potential dealer must have, and in order to cooperate with the manufacturer directly, you must strictly meet these criteria.

In practice, situations often occur when a person who wants to become a dealer does not fit according to a number of criteria set by the manufacturer. To assess your chances of becoming a representative, you need to know these criteria. These criteria are:

• sociability is a mandatory element, since you have to communicate a lot with people;
• activity - you need to work hard to be a successful representative;
• good negotiation and persuasion skills;
• not be afraid to take your own initiative;
• the ability to remain calm and sober of thoughts in situations other than standard ones;
• ability to present yourself better than competitors.

Read also: What business to open in a small town is profitable and promising

If you think that you possess all these qualities, or at least most of them, then you are quite suitable for work in such an area as representing the interests of a manufacturer in the regions.

Of course, the main skill of a representative is the ability to sell the product that he represents on the market. The dealer must be able to convince the potential buyer that the products they offer are the best on the market and at the best price. In order to do this, you need to be able to convince the interlocutor that you are right, have a certain talent and charisma.

A very important character trait of a representative as a person should be the ability to accept a refusal and, accordingly, a breakdown in a deal. It is important to be able to analyze the mistakes made and not focus on failure.

Paperwork

In order to become a dealer of a manufacturer, you need to collect a number of documents. This is due to the fact that in some cases the goods are given for sale and, accordingly, the manufacturer wants to make sure with whom he is dealing in order to know that he will receive money for the provided goods.

The standard package of documents that the manufacturer wants to see consists of:

• certificate of state registration of a legal entity;
• availability of documents for the lease of office space;
• an agreement on the provision of intermediary services.

After the manufacturer has read the main documents and decides that you are suitable, you will be asked to provide additional documents, which consist of:

• identity document;
• statutory documents of your legal entity;
• agreement on the establishment of a legal entity;
• document on registration with the Federal Tax Service;
• valid bank account details.

Of course, every manufacturer has the right to demand some additional documents from you. This will depend on what is being produced in the given facility. For example, if it is alcoholic or tobacco products, then licenses will be needed to trade these types of goods.

In order to attract the interest of a large and well-known manufacturer, you have to compare favorably with other applicants for the role of a representative in your region.

Perhaps the most important will be experience in this area. If you have experience with products similar to those sold by the manufacturer, then you will have a huge advantage over your competitors.

Having a ready-made customer base is also beneficial for you. In addition, the manufacturer will be impressed by factors such as:

• your business reputation;
• your ability to gather a team of professionals around you;
• you have a decent office and technical capabilities for the sale of goods;
• ability to organize warranty service.

How does a representative work

When a cooperation contract is signed, the dealer decides how the policy will be built to promote the manufacturer's products in a given region. To do this, first of all, an analysis of the state of the market in the entrusted territory is carried out.

An analysis of the demand for the products presented is carried out and options for increasing demand are thought out, if necessary. Ways to promote products are being developed. At the same time, one should not forget that the analysis of proposals and pricing policies of competitors is the basis of market analysis.

A company representative is a specialist who promotes the products of a specific manufacturer in a specific region. Any sane person who wants to achieve financial independence dreams of taking such a vacancy, since it is quite a profitable and very interesting job. We will tell you how to become a company representative in your city in this publication.

Where to begin?

In order to become a representative of a large company, you will need:

• Work experience in a specific field;
• Competent business plan;
• Personal interest in the product;
• Having a team of professionals;
• Necessary technical equipment;
• Willingness to invest.

In addition, you need to collect a package of documents:

• Charter;
• Constituent documents;
• Registration certificate;
• A document confirming that you are the head of the organization;
• Office lease agreement;
• Bank account.

Dealer without investment

Many citizens who want to try their hand in this area often ask the question of how to become an official representative of a company without investment? There are several ways:

Trade on order

You have probably seen in the price lists of online stores opposite some items of the product the mark “on order”. This means that the buyer must pay money for the goods to 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;
• Exposes the product for sale at its outlet, or rather, enters it into the price list and various promotional materials;
• The buyer pays for the purchase, after which you buy the goods from the supplier for 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 to which goods belong, the cost of which ranges from 5-20 thousand rubles. Consumers prefer to buy inexpensive daily goods in nearby stores, even if they are slightly overpriced. If you choose too expensive products, you will have to rent an elite office or store. For example, large areas are leased for car dealerships.

Goods for sale

If you have firmly decided that I want to become a representative of the companies, but do not have the funds to implement your plans, you can try to conclude an agreement with the manufacturer in order to receive goods from him for sale. Many large companies meet newcomers halfway and willingly agree to such cooperation.

The most important thing is to sell the products on time. If you do not have time to sell the entire product within a certain period of time, you will have to pay money for it, and 1–2% more expensive than its original cost. In some cases, suppliers take back unsold goods. The terms of return must be prescribed in the contract.

Free testing

The manufacturer sends samples of their products to the sales representative so that he can test them in practice. If you find a company that will agree to provide you with their products for testing for free, consider yourself very lucky, because many suppliers refuse to work on such terms, so the chance to test products for free is a great luck for a beginner.

Official representative

This is the most profitable option, as you get the assurance that the products you sell will be of interest to the end consumer. The supplier provides you with full information support, as well as assists in the organization and development of a trading enterprise. Advertising specialists are engaged in the promotion of goods at a professional level, so you do not have to spend time and energy on it.

Work in a foreign company

Many domestic enterprises are not adapted to agency work. In addition, some of them may not fulfill their obligations. In this regard, newcomers are often interested in how to become an official representative of a foreign company? Abroad, this form of sales has long become a common phenomenon and has become widespread. If you are inexperienced, look for a company that provides training.

Let's take a closer look at what steps you need to take to become a representative of a foreign company:

• Pick a line of business with which you are familiar. For example, a mechanic may sell industrial equipment because he has some knowledge of the sector;
• Find a suitable company and offer them your services. The necessary information can be obtained on the Internet or from industry directories;
• Decide on the assortment of goods. For example, together with lifts for car repairs, you can offer customers 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 benefits.

Advantages and disadvantages

Before you become a company representative in your city, you need to familiarize yourself with all the advantages and disadvantages of this profession.

Pros:

• There is no upper income limit. The more efficiently you work, the more you get;
• There are no competitors within the company;
• Strong partner support;
• Free education;
• Fast start.

Minuses:

• Lack of a permanent salary;
• Big risks of losing start-up capital.

Where to find a company?

Interested in how to become a sales representative for a company? Many manufacturers post information about vacancies on their own sites 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 which the success of your business depends 90%. You should not give preference to any supplier, focusing on low prices. If you are in the mood for serious work, you need to pay special attention to the company's reputation. It is also very important that the products you will sell are in demand in your area.

How to choose a company?

Before making a final decision with which company or manufacturer it is more profitable for you to cooperate, you must first find out.

Construction Materials

Nowadays, trade in building materials brings good profit, so many successful entrepreneurs cooperate with enterprises that produce such products.

Before that, decide on the amount of work. You can open a small retail outlet or a large supermarket. It all depends on your financial capabilities. According to experts, at the stage of formation, an average company will bring much more profit than a large retail chain. You should not strive to conclude a cooperation agreement with a large manufacturer. At first, it's best to work with a small company. In this case, you will earn good money and gain the necessary experience.

Furniture

This is the simplest and most easily implemented idea. Almost all furniture that can be purchased on the market is sold through dealers. An exception may be foreign-made products or large retail chains.

If you decide to go into business and do not know, first of all you need to find a furniture factory and agree with it on cooperation. The manufacturer is fully responsible for the complete set of furniture and its quality. If the buyer discovers some kind of defect, the furniture factory is obliged to replace the product.

Baby food

Before that, many aspiring entrepreneurs take jobs as sales representatives. This allows them to gain the necessary experience and understand the assortment offered by modern baby food manufacturers.

This approach is quite justified, since products intended for children must be of high quality. If you open your own store and buy low-quality goods, the company will quickly go bankrupt. Working as a sales representative allows you to learn from the inside all the features of trading such products, and the experience gained will become a guarantee of the success of your business.

Video: About the profession sales representative

Confectionery

It is most profitable to sell food during a crisis. Despite the fact that almost all citizens begin to save money, they continue to buy food, especially sweets. Before, make a smart business plan and find reliable suppliers who sell quality products at affordable prices. The most profitable option is direct delivery of goods from the manufacturer. In this case, you will receive the freshest products at low prices.

To reduce the payback period of the enterprise, you can install several in educational institutions or in shopping centers. In such passages, chocolates, cookies in small bags, lollipops and so on are great. Since this piece of goods sells quickly and in decent volumes, vending machines will generate a good income.

As you know, a dealer is a representative of a company engaged in the promotion / trade of products of a particular manufacturer in a particular territory. Here we will look at an article on how to become a dealer, what is needed for this.

The advantage of this status is special cooperation programs, as well as support and assistance in development from the manufacturer. In addition, usually the manufacturer himself is engaged in advertising the product, and not the dealer, which, in turn, will help you significantly save on its promotion.

Another important plus is that specialists from the development and training, sales, after-sales service, marketing and IT departments will help you establish all the processes that are simply necessary for a successful dealer launch and getting started in accordance with the manufacturer's standards. This is not the case in all companies, but in all large companies it is.

How to become a dealer

So, consider the information on how to become a dealer - an official representative of any organization, manufacturer.

Company requirements

Almost any company will require you to:

• Stable financial position;
• Experience in your chosen field;
• Dealer business plan;
• Interest in the products of this company;
• The presence in your staff of employees - a team of professionals;
• Availability of the necessary technical equipment;
• Readiness for investment and, if required, construction.

And, of course, the following documents:

1. Charter of the future dealer (if you are a legal entity);
2. Memorandum of Association (if any);
3. Certificate of state registration;
4. Tax Registration Certificate;
5. A document certifying the authority of the head of the organization;
6. Lease / sublease agreement for non-residential premises or certificate of ownership of non-residential premises, where it is planned to organize the place of sale of the future dealer (separately for each such premises);
7. Passport data of the head;
8. Agreement with a sub-dealer, if any (if the declared place of sale refers to a sub-dealer);
9. Bank details.

Priority regions

It often happens that in some regions of the country the dealer network already has sufficient development, and additional opening of representative companies in them simply does not make sense, although, of course, it is possible. At the same time, there are regions in which there are very few dealers, and therefore, very often manufacturing companies publish information about priority regions for opening partners. For example, at the time of publication of this article, BMW prioritizes the following dealer regions:

• Belgorod region;
• Vologodskaya Oblast;
• Kaluga region;
• Udmurt region;
• Chuvash Republic.

As a matter of fact, there is nothing to be surprised at, because why open a dealer of this brand, for example, somewhere in Moscow, if there are already a lot of them, if at that time there are regions where there are almost none. Here, by the way, it would be nice for some readers - future dealers - to think about moving, albeit not permanent. Still, it is directly related to the success of your business - its payback, profit. Almost all companies have such priority regions.

Tenders or what companies consider when choosing a dealer

If we again take BMW as an example, then in order to become a dealer, you will most likely also have to participate in a tender, because there may be several applicants. When choosing, preference will be given to the applicant who most of all will meet the requirements of the company (see the paragraph "What is needed?").

How much money is needed?

If you want to become a car dealer, the costs will range from 20-30 million rubles, depending on the car brand and real estate prices in your region. In all other cases, the numbers are much lower, and sometimes they are not required at all.