What is a distributor and what does he do?
Distributor is an individual entrepreneuror a separate company that buys a large amount of goods from the manufacturer for subsequent trade through agents or a regional market. The main task is to distribute the products around the world and declare the partner as a reliable producer of quality goods. This profession is not easy and in fact, to understand what a distributor, you need at least a little work as a seller. This activity is very interesting, connected 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.
The scheme of the distributor is very simple:
- purchase of goods at prices from the manufacturer;
- sale of products through dealers and agents of other firms or the regional market as a whole;
- the opening of an importing company in other countries.
Few examples from history
As early as the beginning of the 1990s, nobody knewPowder "Invait" reached the Russian consumers due to the fact that the producers of this instant ingredient, which allows to get juice, knew what a distributor is. It is thanks to this system that the company's executives managed to make a fortune and distribute their products around the world.
If, after long and hard work, somethe company eventually appears an official distributor in Russia, which means that the sales will be successful, because the Russian market is immense. Such examples can boast owners of large cellular companies, the corporation "Apple", many cosmetic firms, etc.
The Distributor enters into a contract withthe manufacturer, where the points of sales rules, covered territory, prices and much more are clearly stipulated. This is a great opportunity to create trade and economic relations with foreign firms that are particularly popular in the west. The importer company, independently selling products in other countries, is the general distributor. When the supplier does not have the right to sell their goods to third parties, and the distributor must buy the goods from this supplier only, then this is an exclusive distributor. And the territory for the sale of goods is strictly negotiated in the contract.