A few recommendations on how to become a dealer in the region without investments

A couple of decades ago, the foreign word "dealer" was incomprehensible to Russians, while in European countries it had long since 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 sales representative of a company that purchases goods from a supplier at a nominal value, and then resells it to the buyer with a surcharge. In other words, it is an intermediary between the producer of the product and its consumer.

Benefits

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 beginning entrepreneurs are attracted to this type of activity primarily because it does not involve significant expenses for business development.

Today, you can easily find in the media the ads with the following content: "Work. The dealer in Moscow. " Many respond to them, as the supplier company provides every help and support in building a business and offers profitable cooperation programs. But not everyone can stay afloat.

Partnership Options

Those who do not care about the question of how to become a dealer in the region without investments, should know that the manufacturer can offer several schemes of partnerships. Consider the essence of some of them.

Dropshipping

Дропшиппинг (trade under the order) assumes the following variant of partnership: the dealer independently carries out search of clients, makes out the order on a site of the supplier, makes with it payments for the goods on own behalf, preliminary having 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 know about the second widespread version of cooperation - goods for sale.

The meaning of it is that the sales representative is given a specific period of time, during which he must sell the products. After the expiration of the agreed period, it will have to be paid, and the contract amount may increase by 2-3% compared to the situation if you made a payment in advance. In any case, the risk of burnout takes place. Do not keep within the agreed time frame - be prepared to reimburse the supplier for the losses incurred. Only under force-majeure circumstances can you take unrealized goods back.

Official representative

And, of course, those who want to learn how to become a dealer in the region without investments, it is necessary to say about such a widespread version of partnership, as 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 sold goods are in high demand with the consumer.

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 the company presents to potential dealers

It should be noted that suppliers prefer candidates who can boast 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 selling the goods that the manufacturing company produces. Naturally, the dealer is difficult to work alone, so the selection of a professional staff is the first priority in building a business. In addition, the distributor must take care of the technical equipment of its outlet.

Either way, some investments in business will still be required.

Documentation

A candidate for dealership must submit a certain list of documents to the company, which includes: a charter, a registration certificate, a document confirming the tax registration, an order appointing a manager (for commercial entities). It will also require an office lease agreement or a certificate of ownership of the dwelling, where sales will be carried out.

As for individual entrepreneurs, it is enough for them to produce a certificate of registration and a document indicating the TIN.

Before making the final decision to become a sales representative of the company, carefully study the market situation. Note that in some regions to develop dealer networks is economically unprofitable. Determine the range of goods 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 product is in demand in the Kuban.

Be prepared for the fact that with a huge number of those wishing to become an official distributor, suppliers can announce a tender, according to which the most suitable candidate will be selected.

Please note that the larger the company-manufacturer, the less chance to meet the criteria, as it may require significant investment in the development of the dealer network.

Pay attention to the number of distributors in your region. As a rule, suppliers are more willing to cooperate, when there is not more than one dealer in a particular region or province. This tactic of behavior reduces the risk of competition and positively affects the conduct of business.