How to become a product dealer. Dealership from the manufacturer. Large brands: when quantity turns into quality

The profession of a dealer is quite in demand and also allows you to make good money. Many people believe that dealers are full-time employees of manufacturing companies of certain products, but this opinion is erroneous.

A dealer is a business partner of a manufacturing company who promotes its products in a certain territory on a partnership basis.

A dealer can be called a businessman who makes money by selling partners’ products. Later in the article we will look in more detail at how to become a dealer, as well as what is required for this.

The essence of the dealer’s work is to promote the products of a certain manufacturing company, but it differs significantly from simple retail trade.

Unlike sellers, who can trade goods of a wide variety of brands, dealers have the right to act on behalf of the manufacturer. And also sell products under its brand.

Close cooperation with the manufacturer gives the dealer many advantages, including:

  • Large companies often invest in the business development of their partners.
  • Brand advertising is carried out at the expense of the manufacturer.
  • Employees of the manufacturing company assist dealers in developing their own business, which makes it possible to gain invaluable experience and support, as well as quickly make the business profitable.

In fact, any legal entity that wants to sell the manufacturer’s products under the name of its brand can become a dealer.

At the same time, cooperation with the manufacturer can be carried out in several ways:

  1. The dealer carries out wholesale purchases of manufacturer's products, after which he sells them at an inflated price.
  2. The dealer becomes the official partner of the manufacturer, and also receives compensation for the sale of its products.

It is worth noting that each company sets its own rules for working with partners. Many large companies work precisely according to the second scheme. Small producers, most often, simply sell their products to intermediaries in bulk.

Official dealer of the manufacturer

Many companies engaged in the production of certain products do not have their own sales networks, but use the services of intermediaries called dealers.

In such situations, both the manufacturing company and the person acting as an intermediary between the manufacturer and the buyer benefit.

The company saves money on creating its own sales network by entrusting sales work to relevant specialists, and dealers get the opportunity to quickly open own business for trading products of a famous brand.

Although any seller can sell brand products, it is official dealers who cooperate directly with the manufacturer who receive products at the lowest cost, as well as the right to sell products under the manufacturer’s brand.

Become official dealer possible after participating in tender competitions held by large companies to select the best representative.

Required documents

To participate in the tender, it is necessary to provide the manufacturing company with a whole package of documents that will confirm the seriousness of the candidate’s intentions.


Filling out an application.

To participate in the competition you must submit the following documents:

  • memorandum of association and statutory documents legal entity;
  • documents confirming state registration legal entity and tax registration;
  • a document confirming that the head of the organization has the appropriate powers, as well as the passport details of the head;
  • certificate of ownership or lease agreement commercial premises where the products will be sold;
  • bank details of a legal entity.

There is no point in selling cars if a person has a passion for cooking. In such a situation, you can start promoting brands of relevant products.

You need to work only with brands that are close and interesting to a person. In such a situation, sales will grow, and interest in the business will not disappear even in the event of temporary setbacks.

Nowadays, almost anyone can become a dealer. The main thing in this matter is to find a suitable manufacturing partner, as well as to have the desire and ability to invest in your own business.

How to become a dealer?

Contrary to popular belief, not only “business giants” can ask this question.

Many newcomers to the field of entrepreneurship would not refuse to have stable ground “under their feet” in the form of an experienced and reliable company, and to develop thanks to such support.

It is important to understand an essential detail: the dealer does not simply resell the goods of the employing company.

Its goal is to thoughtfully and efficiently present the products of the “parent” company, properly prepare the client base for the perception of the newly arrived product, and take care of the reputation and promotion of the brand.

Who is a dealer: detailed explanation

A dealer is an employee, often of huge corporations. The purpose of its work is to expand the sales market for products in new regional centers.

An uninformed reader may compare the work of a dealer with the activities of a speculative business. However, this opinion absolutely does not correspond to reality.

The dealer plays the role of an independent entrepreneur in the market segment entrusted to him: he purchases products from only one manufacturer at a price wholesale prices, and subsequently implements it without changing the brand.

At the same time, be sure to take into account all the subtleties marketing activities parent corporation.

The work of a dealer has some parallels with politics.

The leadership of a particular region can make independent decisions within their region.

However, regardless of the views and desires of local politicians, decisions on global issues necessarily coincide with national ones.

Likewise, the dealer chooses his own ways of doing business, but his marketing policy is necessarily subordinate to the “parent” entrepreneurial person

Behind last years the number of dealers in Russia has decreased.

First of all, this is due to the increase in the dollar exchange rate. Currency fluctuations are steadily leading to an increase in purchase prices for imported products.

To remain a successful player in the market or open your own dealership, in the current moment of economic instability, it is important to have certain qualities.

What qualities should an applicant for the role of a dealer have?

When submitting your resume to the human resources department of a potential job for a dealer position, you need to understand the key question: what do employers expect from applicants?

List mandatory requirements for dealers:

    Experience in entrepreneurial activity.

    Hiring a newbie is too risky.

    Moreover, if we're talking about about reputable companies that require guarantees and the proper level of performance from the very first days.

    Communication skills and high level activity.

    A dealer is a very energy-intensive profession.

    To perform his duties efficiently, the applicant must demonstrate the abilities of a “great speaker” in the process of negotiations with partners.

    Also, the profession does not provide a clear work schedule.

    Therefore, you must be ready to perform your duties at any time of the day or night.

    Stress resistance.

    One of the decisive factors in almost any job.

    It’s not for nothing that applicants most often indicate this quality in their resumes in the “about themselves” column.

    The work of a dealer will require even greater tolerance and self-control, because it is associated with constant emotional stress.

    Special requirements associated with distinctive features sold goods.

    At the same time, any peculiarities of doing business in the region where the future dealer operates are taken into account.

    What could become such requirements?

    The presence of an appropriate material base for placing goods, preparation of documentation for opening an LLC, decisions with sales points - all this can be taken into account by the employer.

    Interest in potential employment.

    This point seems self-evident.

    However, it is just as important as the other factors listed above.

    Enthusiasm sometimes plays a decisive role in the decision difficult situations work-related.

If you think you meet all of these points, be happy for yourself!

You have every chance to become a successful dealer and develop both your business and promote your employer’s products.

How to choose the right business area?

In order to become a dealer, you must choose an employer company.

To do this, first of all, you need to determine the market segment that you want to represent.

When choosing a business area, you need to start from personal experience and priority areas for your region.

There is another option: if you want to work with a specific company, you need to establish what its managers consider when expanding the geolocation of their business.

Let's look at the main potential goals:

Corporation GoalsWhat is required from the dealer?
The new representative office should be located in a region in which the company’s products have not previously been representedAnalysis of the regional sales market, competitors, demand for products sold. The dealer is obliged to take into account, first of all, the interests of the employer. If necessary, it is possible to move to another region, where organizing a business will lead to greater success.
Realize your marketing policy based at the dealership centerThe initial task of the dealer is to present the product in accordance with the initial marketing plan. The highest task is to adapt the marketing plan to the client base.
High salesTo achieve such a complex goal, it is necessary to carry out a number of activities. The dealer must ensure uninterrupted supply of goods to properly organized own sales points. Distribution of products by partner networks will also have a positive effect on sales volume.
Cooperation on an ongoing basisIt is important for the employer to understand that you will not leave him the moment you manage to establish the business at the proper level. Successful dealer activity is based on long-term cooperation and constant support.

Taking into account the features and specificity of the goals of the “parent” organizations, you should be thoughtful about the choice of the business area and company you represent.

Only a clear understanding of your goals and the experience to implement them will make your work as a dealer a success, not a failure.

The third option for determining your “dealer path” is to analyze your own capabilities.

For example, a legal entity with connections to the right market sales, points of sale, authority in the market, can claim to open a dealership of a world-class company.

If you don’t have such a solid “starter kit”, consider a more modest employer that offers support in the initial stages of business development.

How to become a dealer: 3 steps to the goal

STEP 1: Find an employing company

The first step to becoming a dealer is finding an employer.

In this process, it’s worth starting from your location, it’s also worth considering regional features business.

Instructions for finding an employer:

    Decide on your business area.

    Use one of the three options discussed in the previous section.

    Analyze the competition.

    Once the industry has been determined, analyze the market in your region for the presence of large representations of other top companies from the chosen line of business.

    For example, if you want to represent the automotive business sector, analyze the automobile market of your city (federal region).

    Suppose the selected region is “neglected” car brand"Audi". So a potential employer has been identified!

    Contact the company.

    After determining the organization whose interests you intend to represent, you need to contact the personnel department.

    In practice, this is done as follows: you find contacts of the nearest representative offices of the organization in your country, contact them, and clarify the details of cooperation.

    The second stage is contacting directly the main office + providing project documentation By .

    The final stage.

    If the employing company shows interest in you, representatives of the main (management) office will ask you to attend a meeting of responsible employees.

    The main task of the potential dealer is to confidently present his business plan at this meeting.

    After analyzing the possible expansion of business in your region, a final decision will be made.

On initial stage interaction, the potential dealer, to a large extent, demonstrates the skills of a marketer (effectively presenting his program for the development of the “parent” business in the region).

The second stage involves real actions to implement plans.

STEP 2: Registering a business

At its core, dealership activity is entrepreneurship.

It is very simple to explain - the dealer organizes his own separate enterprise through which he operates.

That is, a dealer is an employee who organizes a “work office” for himself and sets the rules for internal work in it.

The “paper” component of the process is .

Another form (for example, individual entrepreneur) is unacceptable.

Only a legal entity may be allowed to perform the functions of a dealer.

The dealer receives the status of a legal entity by organizing his own enterprise.

In its focus, it must correspond to the company represented. To do this, of course, the dealer must coordinate each step with management.

This is the only way the employer will be aware of the process of registering a representative business and will be able to control it.

To regulate the process, a cooperation agreement is concluded, which includes:

  • approval of product supply routes;
  • implementation plan + deadlines;
  • product promotion plan;
  • volumes of product purchases;
  • basic description of the cooperation scheme.

Example of a dealer agreement:

Registration of an LLC is carried out in three stages:

  1. The first stage: organizing the composition of the founders and accepting the charter agreement + opening a current account in the bank.
  2. The second stage: submitting an application with all the necessary amendments to the Federal Tax Service, which will register the organization for tax purposes in the Unified State Register of Legal Entities (register of legal entities).
  3. Third stage: practical implementation.

    This includes renting space, hiring employees, organizing the work process according to the employer’s requirements.

After concluding contracts and registering a legal entity, the dealer can begin selling goods on the market of the Russian Federation.

STEP 3: Sale of goods by a dealer

To ensure high-quality promotion of goods, the dealer can rely on the supplier.

The procedure for carrying out marketing campaigns is often described in the contract.

It is beneficial for every employer to help the dealer get comfortable with promoting products and properly organize the sales process.

At the first stages of supply and sales, the dealer can be assisted by a consultant who has more experience in relevant activities.

The dealer’s task, depending on the goals of the representative activity, may be:

  • In working on the product distribution scheme across retail chains, i.e. direct participation of the dealer in negotiations with market representatives.
  • In sales of goods through our own points of sale.
  • In combined activities: selling goods through our own networks + organizing agreements with partners.

Choosing one of these interaction patterns is a key factor in determining your future responsibilities as a dealer.

Some more information about who a dealer is and how to become one in the video:

A dealer is a unique profession, a type of entrepreneurial activity that requires the “employee” to be fully dedicated and interested in his work.

Considering this as a springboard for making a smooth transition to independent entrepreneurship is not entirely the right decision.

Cooperation with a supplier as a dealer involves impeccable obedience to the statutory policies of the parent corporation, without any opportunity to realize one’s ambitions in full.

The path to success as a dealer is to be willing to represent someone else's product with the same care and dedication that you would use to produce your own.

Moreover, the dealer is an important person in any large corporation.

You will become part of a large team, you will feel support “behind your back”, but you will also receive high requirements to the quality of your work.

If you have no questions left, how to become a leader, but only more determination has increased, start acting right now!

Thanks to the support of his “big brother,” even a novice entrepreneur is able to conquer heights that seem unattainable at first glance.

Useful article? Don't miss new ones!
Enter your email and receive new articles by email

Let's try to figure it out - who are dealers, what are they for, and what does it take to become one?

Almost every serious company in its development reaches the level where it is necessary to increase the volume of products produced and expand the geography of sales to increase profits. And it is at this stage that the search begins for a person who could promote the product of this company in a certain region of the country or abroad.

So, a dealer is a legal or individual purchasing the company's products at wholesale prices and at special conditions and selling it in small wholesale or retail. In other words, it is an intermediary between the manufacturer and the buyer or other intermediaries. Due to the fact that the dealer is the largest wholesale buyer, he has exclusive conditions for the purchase of goods, buying them at the most low prices and with all kinds of discounts.

Such conditions are also beneficial to the product manufacturer, which, in addition to increasing volumes, also receives representation of its product in a new region, while shifting the decision of the majority organizational issues to the intermediary. In addition, when concluding an agreement, a clause is stipulated on the regularity of purchasing goods, thus relieving the manufacturer from searching for a market for its products.

If you are planning to open an individual entrepreneur, you should know what you will have to pay

Qualities required for a mediator.

Not every person is given the opportunity to reveal himself in the field of trading; for this you need to have certain qualities, without which you should not even start, otherwise you will simply waste your energy, time and money. You can become a representative of one of the most popular cosmetics companies, Avon, and earn money without leaving home on the official website http://myavon-company.ru<

To expect success, you must have the following qualities:

  • - Stress resistance;
  • - Determination;
  • — Competitiveness;
  • — Activity;
  • — Initiative.

This set of qualities will allow you to achieve success in your business and grow professionally and financially.

Remember that you should simply radiate confidence - “that you are right.” Your task is to convince potential customers that the product you offer is the best and highest quality. If you are negotiating with a representative of stores or other retail chains, then try to make them believe that the products you provide will simply be swept off the shelves. You must be very convincing and have a thorough knowledge of the products you offer in order to persuade them to cooperate with you. Be prepared for the fact that there will be failures, this should not unsettle you, know that “your” client is waiting for you somewhere, you just need to find him. But if you don’t find it, then you can become a representative of one of the most popular cosmetics companies, Avon, and earn money without leaving home, on the official website http://myavon-company.ru

Required documents.

To qualify for a position as a company representative, you need a number of documents, because this is an official business that can bring in serious money.

As a rule, the supplier usually requires compliance with the following conditions for signing a cooperation contract:

  • — You must be a legal entity.
  • — Mediation agreement.
  • — Presence of an office.
  • — Availability of a certificate.

In order to enter into an agreement you will need the following documents:

  • Passport details.
  • Certificate of registration with government agencies.
  • Certificate from the tax service.
  • Bank details.
  • Memorandum of association.
  • Dealer Charter.

Permission to sell vehicles from the traffic police (if you decide to work in the automotive business).

You will have to have contracts and documents certified by a notary. And we already know our notary office

Premises rental agreement.

When you have collected all the documents, become an official representative of the company and have concluded all the necessary agreements, do not think that you will be left to the mercy of fate and you will have to cope with the difficulties that arise on your own. Your success as a dealer is an increase in profits for your partners, so they will provide you with support and every assistance.

First steps.

As soon as you have received an assignment in your region, you are faced with the question of what first steps to take in this business so as not only not to go bankrupt, but also to make a profit? First of all, monitor the market in the territory entrusted to you and find out how strong the interest in your product is and in what ways you can boost the level of its sales. Research your main competitors and how they operate.

Try to develop your own customer base and lure customers away from your competitors. Using the Internet, make a list of companies that may be interested in your product; before making an appointment, try to make as many inquiries as possible about your potential client. Based on the data received, choose a course of action during negotiations. The larger your client base, the greater your profit will be, and money, as you know, is a fairly strong motivator.

What criteria are used to choose a dealer?

If you want to work with a large and serious company, you will have to withstand competition from other applicants. In order to have an advantage over them, you need to know what companies look for when choosing a dealer. First of all, this is your experience in this field; the region in which you live is of great importance.

If the company does not have offices in this region, they will be more willing to cooperate with you. You will also be given preference if you already have your own established client base. Much attention is also paid to the business plan you provide, your reputation, the availability of a technical base, qualified workers and the possibility of customer warranty service. So, the better you prepare, the better your chances of getting the job you want.

How much money needs to be invested.

Most people who want to try themselves as a dealer immediately have a question: how much money will I have to invest in this business? There is no definite answer to this question, because this is influenced by many factors, and it all depends on the scheme you use. After all, you may be able to negotiate with the manufacturer to receive products for sale, in this case you will avoid large investments and pay the company after you sell the goods, but the price with this scheme will be slightly higher than if you paid immediately.

If you decide to pay for the goods immediately, then the size of your investment will depend on the type of goods and the volume of the batch you purchase. Don’t forget to take into account the costs of delivering goods, renting warehouse and office space, recruiting employees and legal and accounting support for your activities. A scheme often used is where the buyer makes a pre-order and makes an advance payment to the dealer. By the way, he, in turn, having received the money, pays for the goods to the manufacturer, and the amount remaining in addition to the prepayment is the profit that the intermediary received.

In general, if you do not have enough money, you will have to convince the manufacturer to meet you and choose the option in which you do not have to shell out money right away.

This type of activity has many pitfalls, but at the same time it is very interesting and very profitable. But only a competent approach and comprehensive analysis will allow you to achieve success, because only by overcoming difficulties can you get something worthwhile.

Perhaps after reading this article you will think about not spending your money on a dealership, but just on your favorite company.

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

Who is a dealer?

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

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. For such companies, such cooperation is beneficial. They do not need to spend money on opening retail outlets. At minimal cost, they can quickly convey information about their products to a large circle of potential buyers.

Dealers are divided into several categories depending on their 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, automobile holdings, who find buyers and receive a percentage of sales. If you decide to become a dealer, first of all decide in which area you want to work.

Becoming a manufacturer's dealer is not just about representing the products of a certain company, it is about being its regional representative (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;
  • sales of related products of the plant;
  • provision of additional services (service, installation, transportation from the factory).

Becoming an exclusive dealer of a manufacturer means gaining the right to solely represent the company in a certain region. This status gives privileges in partnership, since the representative gets rid of competitors and receives special financial conditions.

Becoming an intermediary means taking an intermediate place in the chain “manufacturer – final consumer”. His main role is to find a buyer and complete the transaction.

How to become a manufacturer's dealer?

In order to become a dealer, you need to determine. But the choice of a manufacturer is far from being the only 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 trading. Experts have identified a number of qualities that a person should have:

  1. activity;
  2. communication skills;
  3. ability to negotiate and persuade;
  4. stress resistance;
  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 “exude confidence,” since the main task in this activity is to convince that the proposed product is 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 shelf. 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. Unsuccessful transactions are an integral part of working as a dealer. Here it is important not to get upset, analyze the mistakes made during negotiations and move on, searching for buyers.

Required Documentation

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

In most cases, large manufacturers require the following conditions to be signed in order 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 details;
  2. charter (if you are a legal entity);
  3. memorandum of association;
  4. tax registration certificate;
  5. certificate of state registration;
  6. ownership or lease (sublease) agreement for non-residential premises where the sales location will be organized;
  7. Bank details.

The list of documents may vary depending on the requirements of the manufacturer. If you plan to work in the automobile business, you need to provide permission to sell vehicles from the traffic police.

Description of activity

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

At the first stage, conduct an analysis of the market in the assigned territory, the level of demand and options for promoting products. Determine ways to optimize sales and how to interest a potential buyer. Don’t ignore your competitors, monitor their work.

After this, you need to try to build your customer base. To do this, make a list of companies that may be interested in the product being sold. Before arranging a meeting with potential clients, make as many inquiries as possible about them and develop a negotiation methodology. The larger the customer base, the higher the income level will be.

If you want to become a dealer from a prestigious company or large plant, you need to overcome competition from other applicants. In order to have an advantage over them, you need to take into account a number of factors.

First, they pay attention to experience in this field. Secondly, a lot depends on the region of location. 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 this area, he will be more willing to cooperate. The established customer base is especially valued. The decision to partner is also influenced by:

  • reputation;
  • availability of technical base and work premises;
  • the possibility of attracting qualified personnel;
  • possibility of warranty service.

How much money do you need to invest?

Investments are required to conduct intermediary activities. To become a manufacturer's dealer, you will not need the same amount of capital as, for example, to build. But most often, investments in the chosen project are needed.

It is difficult to name a specific amount; it all depends on the manufacturing company. But if you manage to agree with the manufacturer to receive the goods for sale, you can avoid large investments. You can pay after the product is sold, but the price in this case will be higher than if you pay in advance.

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

How to become a dealer without investment?

If you were unable to raise start-up capital, you can become a dealer without investment. There are several ways to do this.

Sales of products to order

Perhaps, while looking through the price lists for a certain product, you may have seen the “To order” mark next to the “Price” line. This means that you first 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 for the supply of products at a dealer price;
  • the products are put up for sale at the dealer’s outlet (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 the goods from the manufacturer;
  • the purchased goods are sent to the buyer, who, in turn, deposits the rest of the money into the dealer’s account.

This scheme is suitable for goods in the mid-price category. Everyone 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 required. For example, automobile intermediaries rent large areas for showrooms.

Providing goods for sale

Today, many manufacturers provide their goods for a certain time, during which the intermediary 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 specified in the contract. Most often, if the goods are not sold in full, the full price must 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 its products, which help them test and present them to potential buyers. For an intermediary, such a scheme is extremely profitable, but, unfortunately, today manufacturers rarely agree to work under it.

If the idea of ​​becoming a dealer doesn't suit you, consider

Do you want to work under a well-known brand, but don’t 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 provide a list of documents and show you how to get started in a dealership without investment.

Dealer is...

A dealer is an official sales representative of a large company (vendor). He is issued a certificate allowing him to work under a specific mark or brand. He can purchase goods at wholesale prices directly from the manufacturer and sell them at retail.

The dealer's responsibilities include:

  • Promotion of goods in the selected region.
  • Fulfillment of sales plans set by the vendor.
  • Providing clients or customers with detailed information about products and the manufacturing company.
  • Convincing the target audience to choose products from a specific brand.
  • Stay up to date with the latest vendor innovations.
  • Establishing relationships with interested representatives from different fields of activity.

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

What schemes do vendors use?

There are 3 main schemes.

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

Using such schemes, you can work in the securities market, retail trade, 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 resistance. You need to be resistant to all irritants that may occur in your work: communicating with clients, resolving conflict situations, fulfilling vendor requirements and sales plans.
  • Activity. Only through active actions can you earn good money. This concerns 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 differentiate from competitors in order to gain a larger share of the market.
  • Determination. 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 that’s not all, as there are still criteria that must be met.

Criterias of choice

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

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

Attention is also paid to the candidate’s business plan and whether he has an established client base.

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

That is, you cannot simply 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 give preference to those candidates who can represent them in a free region, show a competitive business plan and already have experience in the desired niche.”

Conditions to be met

  • Register as an individual entrepreneur or LLC.
  • Have financial stability and successful business experience.
  • Have an impeccable reputation.
  • Clearly understand the specifics of the chosen company’s niche.
  • Have a unique business plan and ideas for effectively promoting products or goods.
  • Possess the personal qualities listed above.
  • Be ready to invest and have the means to do so.
  • Be open to continuous growth, development and learning.
  • Have the necessary technical base and premises for conducting activities: office, retail facility, warehouse, etc.

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

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

What documents need to be collected

  1. Certificate of registration of individual entrepreneur or LLC and registration with the tax service.
  2. Charter (if LLC).
  3. Memorandum of association (if any).
  4. A lease, sublease agreement or a document confirming the ownership of commercial real estate: office, warehouse, retail outlet, etc.
  5. Passport and its copy.
  6. Bank details.

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

When collaborating with a sub-dealer, you will need a valid agreement with him.

All listed documents must be notarized if the vendor does not have an in-house lawyer.

Finding a vendor: where to look for him

There are two ways to find a suitable company.

Job search sites

There are many resources on the Internet for free resume posting. They are often monitored by companies looking for new dealers to expand their network or replace departed ones.

In your 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 who you are: individual entrepreneur or LLC. Remember that if you are an individual you will still have to register as a legal entity. But you shouldn’t 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 way. It consists of finding a suitable company and sending out a resume.

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

How to become a dealer without investment

Dealership does not always require money. You can enter such a business without large investments. There are 3 work schemes for this.

  1. Product 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.
  2. Product to order. The buyer orders the product, makes an advance payment, and the dealer sends the order to the vendor. The goods delivered from the vendor are transferred to the buyer, who makes the remaining payment. After this, the dealer sends the money to the manufacturing company and keeps his share of the markup.
  3. Official representative. The vendor hires a dealer who offers the target audience price lists and product samples. Income depends on the established remuneration.

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

Advantages of dealership

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

  • You will start selling under a well-promoted brand, around which a loyal target audience has formed.
  • There is no need to spend money on expensive advertising campaigns.
  • You yourself choose the product 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 in your own implementation.
  • It becomes possible to offer products cheaper than analogues on the market.

7 secrets of successful dealership

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

  1. Always check the vendor before sending them your resume. The future success of the business depends on how well the company is chosen.
  2. Choose an inexpensive, but high-quality product that is in demand among your target audience.
  3. Collect and constantly expand your customer base. Use different marketing techniques.
  4. Train and, if possible, attend events organized by the vendor.
  5. Always win people over: look personable, be friendly, smile and don’t lead things to conflicts.
  6. Appreciate regular customers and look for new ones. Offer them discounts and bonuses for their loyalty.
  7. Be confident, assertive and clear in your interviews with new clients or partners. This also applies to the moment of 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 for promoting the product. You need to be confident, purposeful, punctual and responsible. This is the only way to become a successful dealer who will be valued by the vendor.