How to open a dealership. Dealer activity: features of earnings and possible risks. Start-up capital and availability of required infrastructure elements

Finding your place, the best occupation that would bring a decent income and satisfaction is one of the most important tasks for any person. Much here depends on his inclinations and abilities. Someone dreams of being an architect, someone is a doctor, another wants to become a dealer, entrepreneur, manufacturer. First of all, you should analyze your own character warehouse, what you like to do and what works best.

After all, work that will not bring moral satisfaction can lead to an unhealthy feeling of fatigue and even depression.

Many people think about becoming a dealer because they see living examples of the prosperity of such a business. Indeed, such an intermediary link between the manufacturer and the end user will always be needed. It is far from always convenient and profitable for the first to maintain its own marketing department, take care of distribution channels, advertising, and formation. It would also be difficult for the Buyer to purchase goods directly from the manufacturer, because this is usually associated with wholesale lots, delivery problems, and sometimes Therefore, for an entrepreneur who wants to become a dealer, there will always be work. However, it must take into account a number of features of this business.

Firstly, this is not a job for a salary, but work at your own peril and risk. Typically, the dealer is either individual entrepreneur, or creates a separate legal entity in the form of LLC. Before becoming a dealer of any particular manufacturer or group of products, he needs to study this

niche in the regional market. Secondly, it is necessary to analyze the existing competition, the most important players. Understand their benefits and weak sides. In a more comfortable situation is the one who wants to become a dealer selling goods that are not yet represented on the local market. The one who first occupies a certain niche can ultimately dictate his terms. Thirdly, to become a dealer, you need special qualities. This entrepreneur is an intermediary, therefore, the more developed his negotiating skills are, achieving favorable conditions for themselves and from the producer and the consumer, the higher the chances of success. The dealer must be a psychologist and a strategist. Most often, it will be he who will be engaged in advertising, and direct promotion of goods, and the formation of a pricing policy, and customer training. This is especially true for innovative products. Before there is a steady demand, consumers must be prepared.

To become a dealer, both the material base and investments are often needed. Infrequently, the manufacturer makes it possible to work only on

Commission basis. It is much more profitable for him to sell the goods at a wholesale price and to shift all further worries to intermediaries. Consequently, the dealer will need to take care of the storage and office space, look for further distribution channels yourself or hire employees. In addition, it is he who, most likely, will have to deal with both legal and accounting subtleties associated with a particular market. Therefore, freshly minted entrepreneurs who are thinking about how to become official dealer certain products must take into account many aspects. Much will depend on the strategy of the manufacturer. Some prefer to entrust distribution to those players who already have experience with a similar group of products. Others, on the contrary, rely on new entrepreneurs. Both solutions have their arguments. It is possible that the manufacturer will promote their products through various channels.

The goal of any manufacturing company is to sell profitably! But you can do this only by expanding your market.

It is for this that contracts are concluded with trading enterprises or entrepreneurs who undertake the sale of products. manufacturing companies outside the location of the manufacturer.

And such sellers are called dealers.

Dealer: Who is this?

In the understanding of many, a dealer is a simple intermediary who acts on the basis of.

But this is not entirely true: a dealer is a company that, at its own expense and on its own behalf, makes a wholesale purchase from the manufacturer of its products and sells it.

Both an entrepreneur and a legal entity can become a dealer. In this case, all risks associated with sales are borne by the dealer. However, it has advantages, one of which is complete lack of competitors in a particular city or even region for a particular product. This advantage is given to the dealer by the official representative of the manufacturer.

At the same time, she dealer company maybe:

engage in both wholesale and retail sales;
present products from both domestic and foreign manufacturers;
engage in direct sales, and accept applications for the supply of products, having only a showroom.

Despite the fact that the dealer company actually purchases products from the manufacturer, it cannot simply be called a “dealer”, since it closely cooperates with the manufacturer itself, purchases goods directly and has a document from the manufacturer notifying consumers about the supply of the products he offers from the factory - manufacturer.

By the way, the dealer differs from firms working on the fact that:

he is not obliged to follow the manufacturer's recommendations for advertising and promotion;
can replenish its assortment with products from another manufacturer;
and does not pay the manufacturer any commission for using its name.

That is why many consider this format of work as a great way to start their own business.

The way to start your business from scratch

Yes, becoming a dealer is really profitable.

However, this way of working has its own nuances that should be taken into account:

the dealer is responsible for his actions, decisions made and losses incurred;
to become a dealer, you will need not only to conclude an agreement with the manufacturer, but also state registration either as legal entity(more often it is), or an entrepreneur (). Otherwise, no one will conclude an agreement, even if the proposed market is very promising. The fact is that cooperation with a simple individual fraught with certain tax consequences and obligations that no one wants to shoulder;
in addition, it is very important to know the product that the dealer will deal with. For example, if you are going to sell tools, you need to have an idea about all their capabilities and technical specifications, to succeed.

But there is more one group of nuances that need to be clarified at the stage of concluding an agreement with the manufacturer:

payment procedure - prepayment, installment payment, payment after sale and other forms;
the presence of a deposit, i.e. advance payment;
delivery - who is responsible for the delivery of products to the place of sale and the safety of the cargo for this period;
return of products in case of damage, marriage;
the presence or absence of a dealer in the same territory;
there are restrictions on trading platform, price, etc.

it important points, which you need to consider when starting your own business, which has the truth not only advantages, but also disadvantages.

An example of a dealer offer from the manufacturer of heating systems Daewoo Enertec, see the following video:

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Advantages and disadvantages of doing business like this

First of all, the dealer, as a rule, does not have competitors for this type of product in a particular territory. And such exclusivity expands its opportunities in the field of sales and opens access before others to new products and to the entire range of products of this manufacturer. In addition, the higher the dealer's turnover, the higher the manufacturer's discount from the price. This difference provides a solid income for the dealer company.

Despite the fact that the dealer works on his own behalf and at his own expense, the main trump card of his sales is direct deliveries from the manufacturer.

And this for the consumer means:

a product of real factory production, and not artisanal;
the price is recommended by the manufacturer (if it is stipulated by the agreement with the dealer), which means that it is low;
availability of warranty and post-warranty service;
repair with the use of factory components;
the ability to return the product without problems.

But such proximity to the manufacturer is fraught with its own shortcomings:

the manufacturer can dictate the price tag, the order of sales, the terms of use;
the dealer is obliged to buy a certain volume of products, even if he does not sell that much;
if the contract provides, the dealer may be limited in addition to the range of products from another manufacturer.

However, as a rule, all these inconveniences are covered by large discounts, which the manufacturer is obliged to give when increasing the turnover of his products.

How do they become official dealers?

Of course, to become a dealer, would need not only state registration:

knowledge and experience in sales;
the ability to analyze demand and the market and know their state in relation to their territory;
developed dealership;
stable financial condition;
professional accounting and lack of . Very often, manufacturers require certified copies and declarations (, etc.);
the presence of those who have the qualifications necessary to work with the manufacturer's product; or its presence with the entrepreneur himself;
interest in the product and its knowledge.

In addition, it is necessary to make offer, attaching your business plan to it, and send it to the manufacturer. However this offer should be literate not only from a spelling standpoint, but also from a marketing standpoint. Then it will be able to convince the manufacturer of the competence of the future dealer.

Do you want to become a dealer?

Now there is a large selection of dealer offers that manufacturers themselves make, and, in any areas. For example:

auto products are represented by such manufacturers as PROMA Light Alloy Wheels, Expedition, KAMA MOTOR PLANT, Kurgan Trailers, Auto Technology Group, Togliatti Trailers, Avtonota, URAL IRON MANUFACTURE, VMPAVTO, Rossvik, Volga Tire Company, MOTORFIST, and others;
interior and exterior doors - "Cardinal", "Vivo-Porte", "Pharaoh", "League of Doors", "Euro-Doors", "PROFF", "Woodware Plant", "RosDver", "Art Deco", "Dera", "Contour ”, “DOOR FACTORY”, “Cabinet Doors”, “Torex”, “LineDor”, and others;
blinds — Stroy-Life, RUPAN, Decor-CITY Ural, New Blinds, and others;
furniture, furniture materials and fittings – Involux, Uyutny Dom, Ivanovo Furniture Factory, Somovo-Furniture, Geniuspark, BELKUKHNYA, Kadichi, L-furniture, NOVA, RONIKON, Ikhsan ”, “Furniture Factory March 8”, “Furniture Symphony”, and others.

And this is only a small part of the current offers!

An example of dealer cooperation from a car oil manufacturer is shown in this video:

A couple of decades ago, the foreign word "dealer" was incomprehensible to 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 they, these people? In fact, a dealer is a company that buys goods from a supplier at a price and then resells it to the buyer at a premium. In other words, it is an intermediary between the producer of a product and its consumer.

Advantages

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 start-up entrepreneurs are attracted to this type of activity primarily because it does not involve significant costs for business development.

Today, one can easily find advertisements in the media with the following content: “Work. Dealer in Moscow. Many respond to them because the supplier company provides all kinds of assistance and support in building a business and offers profitable cooperation programs. But not everyone manages to stay afloat.

Partnership options

Those who are haunted by the question of being in a region without investments should know that a product manufacturer can offer several partnership schemes. Let's consider the essence of some of them.

Dropshipping

Dropshipping (trade on order) involves the following partnership option: the dealer independently places an order on the supplier's website, makes payments for the 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?" should be aware of the second common variant of cooperation - goods for sale.

Its meaning lies in the fact that the sales representative is given a specific period of time during which he must sell products. After the agreed period, it will need to be paid, and the contract amount may increase by 2-3% compared to the situation if you paid in advance. In any case, there is a risk of burnout. Do not meet the agreed time frame - be prepared to compensate the supplier for the losses incurred. Only under force majeure circumstances can you take back unsold goods.

Official representative

And, of course, those who want to learn how to become a dealer in the region without investment should be told about such a common partnership option as an official representation. In this case, the distributor receives information, advertising, consulting assistance, and in full. In addition to assisting in building a business, you will have a guarantee that the goods sold are used in high demand at the consumer.

At the same time, the official dealer is not obliged to engage in advertising - this is the prerogative of professionals. Undoubtedly, this type of partnership has only advantages. In other words, the official dealer is protected from many risks.

Requirements that companies impose on potential dealers

It should be noted that suppliers give preference to candidates who can boast of a stable financial position. In addition, they must have experience in building dealer networks. A potential sales representative must have a business plan in hand and be interested in the sale of those goods that the manufacturing company manufactures. Naturally, it is difficult for a dealer to work alone, so the selection of a professional staff is a top priority in building a business. In addition, the distributor must take care of technical equipment your point of sale.

One way or another, but some capital investments in the business will still be required.

The documents

A candidate dealer must submit a certain list of documents to the company, which includes: the charter, registration certificate, a document confirming tax registration, an order to appoint a head (for commercial structures). You will also need a lease agreement for an office or residential space where sales will take place.

As for individual entrepreneurs, it is enough for them to present a document indicating the TIN.

Before making the final decision to become a company, carefully study the market conditions. Please note that in some regions it is not economically viable to develop dealer networks. Determine the range of products 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 particular product is in demand in the Kuban.

Be prepared for the fact that with a huge number of people wishing to become an official distributor, suppliers may announce a tender, according to the results of 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 of the company in your region. As a rule, suppliers are more willing to cooperate when there is no more than one dealer in a particular region or region. This behavior reduces the risk of competition and has a positive effect on doing business.

Do you want to work under a well-known brand, but do not know how to become an official dealer? Below we will describe in detail what is needed for this and what criteria must be met. We will give a list of documents and show you how to start a dealership without investments.

Dealer is...

Dealer (English dealer - trader) is an official sales representative big company(vendor). He is issued a certificate that allows him to work under a specific brand or brand. He can purchase goods at a wholesale price directly from the manufacturer and sell them at retail.

Dealer responsibilities include:

Promotion of goods in the selected region.
Fulfillment of sales plans set by the vendor.
Providing customers or buyers with detailed information about the goods and the manufacturing company.
Belief target audience choose products of a particular brand.
Keep abreast of the latest innovations of the vendor.
Build relationships with stakeholders from different areas activities.

Details of the responsibilities and benefits of dealership will be discussed below. But first you need to understand the main types of such activities.

How vendors work

There are 3 main schemes.

Cooperation with one partner. The vendor bets on one major player market and relieves himself of a number of tasks that the dealer solves for him: promotion, retail goods and attracting wholesale buyers.
Work with a network of partners. The vendor is building a partner network in several regions, creating healthy competition for its members in the market. But often because of this, companies have to look for new dealers, as the old ones lose interest in them due to the lack of a clear policy or the inability to meet the set sales volumes.
Mixed scheme of work. The vendor operates in the selected region with a large number of customers. And dealers work where the target audience is smaller. That is, for example, a company and its dealer do not operate in the same city, unless the contract provides otherwise.

According to such schemes, you can work in the market valuable papers, retail or cooperate with large companies: for example, automobile concerns or computer equipment manufacturers.

How to become a dealer: personal qualities of the candidate and selection criteria

Dealership is an attractive business, but with serious selection criteria. You need to clearly understand whether you meet them.

Personal qualities of the candidate

A person who decides to become a dealer must have at least a minimum set of personal qualities.

Stress tolerance. You need to be resistant to all irritants that may occur in your work: communication with customers, conflict resolution, fulfillment of vendor requirements and sales plans.
Activity. Only active actions can make good money. This applies to attracting the attention of the target audience to goods or services, business promotion, etc.
Initiative. Vendors prefer to work with dealers who are ready to take the initiative into their own hands for the benefit of the common cause.
Competitiveness. Ideally, a future dealer should understand how to competently stand out from competitors in order to get most market.
Purposefulness. Without it, it is impossible to build a successful business.

If an entrepreneur has this set of qualities, then his chances of becoming a dealer are great. But this is not all, as there are still criteria that must be met.

Criterias of choice

A candidate for the role of a dealer must be registered as an individual entrepreneur or LLC. Become part of a large company or worldwide famous brand an individual will not be able to.

Even before the interview, companies are looking at candidates: whether they can withstand competition from other applicants, whether they have experience in the right field, in which region they are going to work, etc.

Attention is also paid to the candidate's business plan and the presence of an established client base.

They also look at the reputation of the company, the number of employees, the number of years on the market, etc.

That is, you can’t just register an individual entrepreneur and, without experience, come to a large or small company with an offer to become their dealer. You need to seriously prepare for this.

“Vendors prefer candidates who can represent them in the free region, show a competitive business plan, and already have experience in the right niche.”

Conditions to be fulfilled

Register as an individual entrepreneur or LLC.
Have financial stability and successful business experience.
Have an impeccable reputation.
Clearly understand the niche features of the chosen company.
Have a unique business plan and ideas for the effective promotion of products or goods.
Possess the personal qualities mentioned above.
Be ready to invest and have the means to do so.
Be open to constant growth, development and learning.
Have the right technical base and business premises: office, commercial facility, warehouse, etc.

In some cases, for example, if you have a company, you will need a strong team: experienced and qualified employees.

Having fulfilled these nine conditions, the vendor is unlikely to refuse you the position of a dealer.

What documents need to be collected

Certificate of registration of an individual entrepreneur or LLC and registration with the tax service.
Charter (if LLC).
Memorandum of Association (if any).
Lease agreement, sublease or proof of ownership commercial real estate: office, warehouse, outlet and etc.
Passport and its copy.
Bank details.

If you plan to become a dealer of an automobile concern, you will need to obtain permission from the traffic police to sell vehicles.

When cooperating with a sub-dealer, you will need a valid contract with him.

All of the above documents must be notarized if the vendor does not have a full-time lawyer.

Vendor search: where to find it

There are two ways to find the right company.

job search sites

There are many resources on the Internet for posting a resume for free. They are often monitored by companies looking for new dealers to expand their network or replace those who have left.

In the resume, you need to describe in detail your experience in business, niche, mention the presence of a business plan and ideas for promoting goods and products. Be sure to indicate whether you are an individual entrepreneur or LLC. Remember that being an individual will still have to register as a legal entity. But you should not do this in advance, because there is no guarantee that someone will pay attention to you and offer to become a dealer.

Independent search

This is the most effective method. It consists in finding a suitable company and sending out a resume.

If you are engaged in trade, then you should choose a supplier of one of the goods and invite the management to become its official dealer.

How to become a dealer without investment

Dealing does not always require money. You can enter into such a business without large investments. There are 3 ways to do this.

Goods for sale. First, the manufacturing company sends its products to the dealer, who sells them, and only then gives the money to the vendor. This is the most profitable and popular scheme.
Goods on order. The buyer orders the goods, makes an advance payment, the dealer sends the order to the vendor. The goods delivered from the vendor are transferred to the buyer, who pays the rest of the payment. After that, the dealer sends the money to the manufacturing company and keeps his share of the markup.
Official representative. The vendor hires a dealer who offers price lists and product samples to the target audience. Income depends on the established remuneration.

The most profitable schemes of work are the first and second. The third is more like a hired job.

Dealership Benefits

Being a dealer has more advantages than starting your own business.

You will start selling under a promoted brand around which a loyal target audience has formed.
No need to spend money on expensive advertising campaigns.
You choose the goods or products that you will sell.
There is no need to pay for training, because vendors regularly conduct free trainings and master classes for dealers. You will gain valuable knowledge that you can later implement into your own .
It becomes possible to offer products cheaper than analogues on the market.

7 secrets of successful dealership

In conclusion, we propose to study and remember the 7 main secrets that will help you become a successful dealer.

Always check the vendor before sending him a resume. The future success of the business depends on how correctly the company is chosen.
Choose an inexpensive, but high-quality product that is in demand among the target audience.
Collect and constantly expand your customer base. Use various marketing techniques.
Learn and, if possible, attend events organized by the vendor.
Always win people over: look presentable, be friendly, smile and do not bring things to conflict.
Appreciate regular customers and look for new ones. Offer them discounts and loyalty bonuses.
Be confident, assertive and speak clearly in interviews with new clients or partners. This also applies to the moment of the first communication with the vendor.

Becoming an official dealer is not easy. You need to carefully prepare for this: study the company, come up with several original ideas product promotion. You need to be confident, purposeful, punctual and responsible. This is the only way to become a successful dealer who will be appreciated by the vendor.