What is a distributor and what does he do?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A distributor is an individual entrepreneur or a separate company that buys goods in large quantities from a manufacturer for subsequent trade through agents or a regional market. The main task is to distribute products around the world and declare the partner as a reliable manufacturer of quality goods. This profession is not easy, and in fact, to understand what a distributor is, you need to work at least a little as a seller. This activity is very interesting, connected with communication, the ability to find a common language with a variety of people. A distributor has many different roles and responsibilities that are just as interesting as what he sells.

Distribution activities

The distributor begins to perform its direct functions from the moment when it purchases goods from a manufacturer, most often a foreign one. Cooperation with foreign firms brings more profit and is of significant interest to new consumers, such as Russian ones. Previously, many did not even know what a distributor is, whatit is of great importance in the field of market relations, economic development and sales in general.

The distributor's scheme is quite simple:

• purchase goods at manufacturer prices;
• sale of products through dealers and agents of other firms or the regional market as a whole;
• opening an importer in other countries.

Some examples from history

Even in the early 1990s, the unknown Invite powder reached Russian consumers due to the fact that the producers of this instant juice-making ingredient knew what a distributor was. It was thanks to this system that the company's leaders managed to make a fortune and distribute their products around the world.

If, after long and hard work, any company eventually has an official distributor in Russia, then sales will be successful, because the Russian market is immense. Such examples can be boasted by the owners of large cellular companies, Apple Corporation, many cosmetic companies, etc.

Documentation

The distributor concludes an agreement with the manufacturing company, which clearly stipulates the points of the sales rules, the territory covered, prices and much more. This is a great opportunity to create trade and economic relations with foreign firms, which are especially popular in the West. An importing company that independently sells products in other countries is a general distributor. Whenthe supplier does not have the right to sell his goods to third parties, and the distributor must buy goods only from this supplier, then this is already an exclusive distributor. And the territory for the sale of goods is strictly discussed in the contract.

All rights and obligations of the parties are secured by the distribution agreement. Then the distributor receives from the general director of the manufacturing company an appropriate certificate indicating the type of intermediary company. Now, we hope everyone understands what a distributor is, what are his duties and main purpose.