Dealer activity: features of earnings and possible risks. Dealership from the manufacturer How to become a company representative

In this article we will talk about how to become a dealer (representative), what is the procedure for becoming an official dealership, how companies are selected, and how much money is required for this and whether it is possible to do without large investments.

What qualities should a future representative have?

The question of how to become a dealer, in addition to large businessmen, is asked by those who decided to take the path of entrepreneurial activity from this very step. After all, few people will refuse to try their hand at business, representing an experienced and reliable company.

Those who are still at the very beginning of a long journey would probably like to understand what qualities are expected of them when applying for a job. The key requirements of employers for applicants for the position of an intermediary who will officially represent the company include:

• presence of practical experience in entrepreneurship. Without it, learning the basics of the profession will be quite difficult. Qualification is needed especially if the employer is a reputable company;
• high activity and communication skills. In order to perform his duties efficiently, a dealer must have oratory skills. At the same time, in this profession there is no clear work schedule, and a person must be constantly energetic;
• stress resistance. This quality is considered as one of the key ones when hiring, regardless of the position offered;
• passion for work. Often, enthusiasm for work allows you to resolve a huge number of difficult situations.

Required documents

To officially represent the company's products, you will need a package of documents. Their presence is mandatory, as it must be conducted officially and can bring good profits.

To sign a cooperation agreement you must:

• be or register as a legal entity;
• have a mediation agreement in hand;
• have your own office;
• receive a certificate.

To sign contracts, you will need the following documents:

• passport;
• certificate of registration with the fiscal authorities;
• documents on registration with government agencies;
• bank account details;
• founding agreement and articles of association.

Copies of all listed documents will need to be certified by a notary office.

How to become a manufacturer's dealer?

Before you start working together with one of the manufacturers, you should study existing offers on the market. One way to solve this issue is to visit the official websites of companies. In addition, it is necessary to analyze existing market sectors in the region, determine the products that are in greatest demand among consumers, as well as assess the occupancy of the market segment and identify potential buyers.

Often, companies looking for dealers in the regions have requirements such as:

• registration as a legal entity or individual entrepreneur, which will allow you to sign an official agreement with the dealer;
• the future representative must be well aware of the company’s field of activity;
• the official agent of the manufacturer must be financially stable;
• passing a number of permitting procedures if the company’s activities are subject to licensing.

Enterprises offer their future representatives the following possible cooperation options:

• by sales volume, when the dealer is obliged to fulfill the planned sales plan for a certain period of time;
• cooperation in legal content, when a dealership agreement is signed between the manufacturer and the entrepreneur and this cooperation is supported by the presence of a certificate.

How to become a factory dealer?

As in the previous case, individual entrepreneurs and legal entities can obtain official status as a representative of a manufacturing plant. At the same time, from a sales point of view, it is the intermediary who takes on all possible risks. However, this form of cooperation also has its advantages. One of them is the lack of competition for a certain product in a particular region.

How to become a dealer without investment?

If for some reason the future entrepreneur was unable to raise start-up capital, then you can become a manufacturer’s agent without investment.

In these conditions, the following options for cooperation exist:

• sale of goods to order. To do this, the manufacturer signs an agreement with the dealer to supply the goods at the dealer price. These products must be offered for sale in a dealer distribution network. In this case, the official representative must pay the manufacturer an advance payment under the contract. The remaining part of the debt will be paid after the goods are sold;
• free testing, where free production samples are given to the dealer for demonstration to potential buyers.

How to become an official dealer?

To obtain the right to be called an official dealer of the manufacturer, in addition to state registration, you will need:

• practical experience and knowledge of sales;
• ability to research existing demand and market;
• a dealer business plan should be developed;
• be financially stable;
• have correct financial statements;
• ensure the presence of employees whose qualifications allow them to work with the manufacturer’s products;
• Demonstrate interest and knowledge of the manufacturer's products.

Having taken all these steps, you can prepare a commercial proposal, attach your own business plan to it and send the entire package to the manufacturer.

How to become an auto parts dealer?

The algorithm of actions that allows you to become a dealer of auto parts is no different from the scheme of actions for formalizing a similar form of cooperation if we are talking about the production of other products.

How do firms select official representatives?

Manufacturing companies, especially when it comes to large manufacturers, select official intermediaries through tenders. This is due to the fact that there may be many entrepreneurs who want to get this tidbit of the pie.

When making a final decision regarding a candidate, preference will be given to the one who best meets the criteria.

How much money is needed?

It is quite natural to ask how much money you will have to invest to engage in such a business.

As noted above, in some cases this can be done without incurring any costs by agreeing with the manufacturer, for example, on receiving goods for sale.

If it was decided to pay immediately for the purchased goods, then the volume of required investments will depend on the volume of the purchased batch and the type of product.

Conclusion

In conclusion, I would like to add that everyone will be able to try themselves as a dealer, having gone through all the necessary permitting procedures. Here it is important to demonstrate a strong desire, have the appropriate knowledge and be ready to devote yourself to the task to the fullest.

• Is it easy to become a dealer?

We often hear the expressions “official dealer”, “dealer network”, “use the services of a dealer”. Most often they are associated with car sales companies. And this is no coincidence, because car dealership is the most famous and widespread area in this area. But dealers work not only in the field of vehicle sales. Moreover, dealership is one of the proven ways to successfully build your business.

In the article you will learn who a dealer is, what the features of his activities are, and how to become a successful dealer.

“Dealer” - from the English “dealer”, which means merchant, agent.

Dealership implies:

• trade intermediary activities. Dealer is a legal or natural person who purchases products at his own expense and on his own behalf from the manufacturer in bulk and then sells them to end consumers;
• activity on the stock exchange. A dealer is an individual or a company conducting exchange transactions on its own behalf and at its own expense, independently purchasing and selling securities, currencies, and precious metals.

Let's talk about trade and intermediary dealer activities.

Many commodity producers do not create their own distribution network, but sell their products through intermediaries. One of them is a dealer. For example, not a single car manufacturer runs its own network of car dealerships. Cars are sold through dealerships that form a dealer network.

In principle, any seller of a product can be considered a dealer of the manufacturer of this product. But it is important to understand that there is simply an intermediary, and there is an official dealer - a partner with whom a dealer agreement and a direct contract for the supply of goods have been concluded.

A dealer is a link connecting the manufacturer of goods and/or services directly with the consumer. Often another element is added to this chain - a distributor. A distributor is a distributor of goods for the manufacturer and a supplier for the dealer; he does not have a direct connection with the end consumer.

The distributor works on behalf of the manufacturer, and the dealer works on his own behalf. By the way, your name and brand are the main advantage of a dealership overfranchise. The dealer has more freedom and independence.

The dealer's main profit depends on the amount of the dealer discount that the manufacturer provides him with on his products. The amount of the discount varies depending on the size of the batch of goods purchased, as well as on turnover. With a large sales volume, the dealer receives an additional reward from the manufacturer. Dealer relationships benefit both the product manufacturer and the official dealer.

The manufacturer receives:

• expansion of sales markets without going into their regional characteristics;
• scaling your business without major investments;
• additional channels for selling products without renting additional space and hiring employees;
• increasing turnover of goods;
• profit growth.

The dealer company receives:

• good quality goods with a package of documents for sale, while the manufacturer is responsible for quality;
• support from the manufacturer, including the provision of promotional materials;
• posting contacts on the manufacturer’s website;
• free training (many manufacturers organize mandatory training for their dealers);
• receiving discounts when purchasing goods and bonuses for successful sales.

It is believed that creating a dealer network is one of the most cost-effective ways to expand sales markets and increase product sales channels.

Dealership is a business. And organizing any business requires a serious approach. A dealer, when selling someone else's products, operates under his own name and brand; it is important for him to have a good reputation in business. Very often, a dealer creates his business reputation precisely by promoting the products of his manufacturing partner.

As a rule, a dealership business requires significant investments, because you need:

• purchase a specific batch of goods;
• rent or own premises to store and sell this product.

To become an official dealer of the company, you must meet a number of requirements. They depend on the specifics of the activity and may vary among different manufacturers. The main requirements that manufacturers place on their dealers:

• registration as a legal entity (for example,OOO) or IP— this is necessary to conclude a formal contract;
• awareness of the company’s field of activity, an additional plus is experience in this area and/or with similar products;
• stable financial position;
• availability of a number of documents in accordance with the specifics of the products sold.

You can look for a company for cooperation in different ways:

• register on the job search site:

post a resume with a proposal for cooperation or look for suitable job offers from manufacturers and send responses;

• Search the Internet for companies that are looking for dealers. Information about this is on the official websites. Often there is also an application form for proposals for cooperation;
• analyze options for manufacturers' search for new dealers.

Here are some options:

• Participation in exhibitions is a good opportunity to personally meet future partners. Unfortunately, exhibitions are held infrequently and not everywhere;
• analysis of information about companies in various online directories;
• participation in business forums;
• analysis of advertising on business management websites;
• search on YouTube - many businessmen have their own channels there and often voice proposals for cooperation.

If you have your own store, you can become an official dealer of the manufacturer/manufacturers of products that are already sold at the outlet. This will take your business to the next level.

Step-by-step instructions on how to become a dealer of a large company

To become a dealer, you need to complete the following steps.

1. Choose a niche in the dealership business. To do this you should:

• take into account your preferences, knowledge, skills;
• research the market in your region;
• choose the type of product you will sell;
• thoroughly understand all the characteristics, properties and capabilities of the selected product;
• study competition and competitors in the region;
• estimate the number of potential customers and channels for attracting them;

1. Register a business form if you do not have your own business;
2. Develop a business plan;
3. Find money if you don't have enough of your own. At this stage, you can consider taking out a loan orattract an investor;
4. Find manufacturers or suppliers using various methods. At this stage, you can select several companies to compare the proposed terms of cooperation and select the most suitable ones;
5. Choose a company for cooperation;
6. Submit your resume to the company and undergo an interview. It can be carried out either in the company’s office or via the Internet, for example, via Skype, if the partner company is located far from you;
7. Enter into a contract. There are two options for cooperation for dealers:

• for working capital - consists of meeting the requirements for a certain fixed volume of purchases, and, consequently, fulfilling the sales and profit plan;
• in terms of legal content - it consists in the possibility of creating your own network of subdealers as a General Dealer in a certain territory;

1. Create conditions for the sale of products, if required:

• rental of premises;
• acquisition of necessary equipment;
• staff recruitment;

1. Purchase a consignment of goods specified in the contract;
2. Advertise products through various channels;
3. Sell ​​goods.

The Toyota company is constantly expanding its dealer network in Russia. There are 112 official dealership centers and 3 authorized service centers in 70 cities of the Russian Federation. Toyota Motor LLC imposes mandatory requirements on applicants for dealerships, which relate to:

1. Location of the land plot.
2. Its characteristics.
3. Showroom.
4. Service area.
5. Warehouse and spare parts department.

Here you can download the form, fill it out and send it to the company.

Is it easy to become a dealer?

The main goal of the dealer is market promotion and successful sale of the products of the manufacturing partner. The dealer must have the following qualities:

• have the skills of a good seller;
• be able to negotiate and communicate freely with clients;
• be able to prepare a competent proposal and presentation of products;
• be a good organizer;
• be stress-resistant;
• have a high reaction speed, good memory, analytical skills;
• be able to foresee and calculate the situation.

Is dealership possible without investment?

It is possible to become a dealer without investment if you:

• If you carry out trade “to order” - you enter into a dealer agreement with a manufacturer or supplier, enter the goods into the catalog and/or place them on your website (your point of sale can also be an online store) with the mark “to order”. The client orders the product, pays for it, you use the money received to buy the product from the manufacturer at dealer prices and transfer it to the client. This type of cooperation is possible for relatively inexpensive goods (from 3 to 25 thousand rubles);
• When you take a product for sale, you enter into an agreement with the manufacturer, which specifies the terms for the sale of the product. Your goal is to sell the product within the established time frame, otherwise you will have to pay for it, and the price will be higher than the dealer price. Sometimes suppliers take back unsold goods. All conditions are specified in the contract;
• carry out free testing of the product - you receive free product samples from the manufacturer and try to sell them. However, it is very difficult to find a company that agrees to work under such conditions.

Review of dealership offers from manufacturers

Dealership is possible in various areas:

• motor transport and auto products;
• windows and doors;
• constructionand finishing materials;
• equipment and tools;
• books;
• clothing and shoes;
• electronics and electrical engineering;
• computers and software;
• communication services;
• promotional products;
• insurance companies, etc.

Offers for dealer cooperation can be found on websites on the Internet.

How to become a company representative in your city: success stories

The TROKOT company produces frame car blinds that replace tinting and save car owners from the blinding sun and prying glances. The company has a wide dealer network consisting of almost 200 representative offices.

Artyom Blinov is a dealer of the company in Moscow. Before the start of cooperation, he had a modest work history and had no experience in trading. In 3 years, he created his own sales network, which allowed him to gain financial independence.

Denis Zaiko has been a dealer of the company in Novosibirsk since 2012. It has its own warehouse, sales points in the region and a company that generates high income.

Dealer activity allows you to successfullystart a business, and develop the existing one. A dealer’s partnership with trusted manufacturers and suppliers of well-known brands usually becomes mutually beneficial. Manufacturers expand their sales markets without investment, and dealers have the opportunity to earn money by selling high-quality goods, purchasing them at special prices and receiving additional bonuses for good work.

In almost every successful company there comes a time when it is necessary to expand the geography of sales in order to increase the number of consumers of its products and make a profit. At this stage, the company initiates a search for a person who could perform the functions of promoting the product in a certain region of the country or abroad.

We are talking about a dealer - a legal entity or individual who purchases the company's products on special terms and at wholesale prices for subsequent sale at retail or in small wholesale. This is the so-called intermediary between the manufacturing plant and buyers (other intermediaries).

Taking into account the fact that the dealer is the largest wholesale buyer, he is given exclusive rights to the product, purchasing it with all kinds of discounts at the lowest prices.

Such conditions are beneficial, among other things, to the manufacturing plant, which, in addition to increasing volumes, also receives product representation in an undeveloped region, plus the opportunity to shift some of the important organizational issues to an intermediary.

Selection criteria

Cooperation with a large company presupposes that the dealer has the ability to withstand competition from other contenders for occupying this niche.

When choosing a dealer, companies pay attention to:

• presentation of the enterprise (photos, infrastructure, characteristics of activities, etc.);
• experience in this field and the presence of an established client base;

• region of residence (doing business) and knowledge of the situation in this region: knowledge of the region’s capacity in services and products; the concept of the component shares of the main sellers in the market; having an idea about the activities of competitors; having knowledge of key clients in the market plus maintaining contact with consumers on an ongoing basis;
• stability of financial situation, readiness for investment (construction);
• availability of technical base and staff of qualified employees;
• interest in product promotion;
• favorable location of infrastructure facilities for potential clients, including proximity to major highways, convenient access roads, etc.

The standard period established for reviewing applications and making a decision varies from one to one and a half months.
If the decision in favor of one or another official dealer is positive, a dealer (service, distribution) agreement is concluded with the latter for six months (considered as a probationary period).

Opportunities for business efficiency

Representation of the manufacturer for the subjects of the dealer network means great opportunities used to ensure the efficiency and profitability of the business.

This:

• receiving discounts from list prices plus bonuses for worthy fulfillment of dealer obligations;
• guaranteed centralized delivery of goods to warehouses;
• additional training for service, sales and marketing specialists;
• participation in special leasing programs, including the possibility of purchasing equipment for service centers on lease.

In addition, when carrying out activities, the dealer receives from the manufacturer full marketing, technical and advertising support (providing advertising products, technical literature, organizing exhibitions, etc.).

Required documents

If you are interested in an offer to become an official dealer of a manufacturer, you may be asked to prepare certain documents.

Namely:

• documents confirming the status of an independent legal entity in the proposed region;
• a completed application form plus an assessment sheet indicating information about the company, its location, sales, team and readiness to invest;
• business plan as part of working with the manufacturer, taking into account the above aspects.

These documents are usually sent to a representative of the dealer network development bureau. Next, the applicant will be provided with more detailed information related to the requirements for entities of the manufacturer’s dealer network, as well as a list of mandatory documents, the presence of which is mandatory for consideration of the application.

Start-up capital and availability of required infrastructure elements

There is no unambiguous wording for answering the question about the dealer’s startup costs. It all depends on the manufacturer and their requirements, the circuit used and the dealer’s own experience. For example, if you intend to become part of the dealer network of KAMAZ PJSC, you need to be ready to invest in maintaining working capital for the purchase of products. This is about 10-12 million rubles for cars and exactly the same for spare parts.

Even at the initial stage, it is necessary to provide 5 million (up to six months) and 12-13 million rubles over a period of one and a half years for the development of the infrastructure of the dealership center.

If you manage to reach an agreement with the manufacturer regarding the receipt of products for sale, you will be able to avoid large investments and pay the company after you sell the goods.

However, the price with such a scheme will be an order of magnitude higher than if you paid the fee right away.

If you are ready to pay for the goods immediately, the amount of investment will depend on the volume of the purchased batch and the type of goods.

In addition, you will need to take care of the presence of the required elements of dealer infrastructure in the proposed region (taking into account the declared status).

You will need:

• a protected area intended for receiving and storing products;
• warehouses with conditions for loading and unloading;
• service center under management, ready to carry out all operations;
• sales and purchasing office space for staff plus a relaxation area for clients.

The type of activity under consideration has many pitfalls; it requires the presence of certain personal qualities and the fulfillment of a number of requirements of the manufacturer. At the same time, this is a very interesting and profitable activity, in which success can only be achieved with a competent and balanced approach.

Many people think that becoming a dealer is very easy. Take the product of someone else's labor and sell it for your health. But not everything is as simple as it seems at first glance.

Basic provisions

The word “dealer” itself is translated from English as “trader”. Indeed, people in this profession have to deal with the purchase and sale of certain products. There are two categories of dealers:

• some participate in the circulation of securities, and do so on a contractual basis at their own expense;
• others purchase products from large manufacturers in bulk and then sell them at retail or in small quantities.

Even after such definitions, it is clear that becoming a dealer is not at all easy. First you need to officially register your activity. To do this you need to obtain the appropriate license. For the first category of dealers, it is divided into transactions with corporate or government securities. But to register it, you must have your own initial capital, the amount of which is established in accordance with the law. Further, his responsibilities will include drawing up quotations and concluding sales and purchase agreements. Therefore, to become a dealer you must have the appropriate economic education and certain practical skills. After all, in the future he will have to represent the interests of the issuer and this must be done, focusing on the maximum benefit in the interests of each of their parties.

The result of the dealer's work

Representatives of the second category of this complex profession are most often encountered in life. Sometimes they are mistaken for speculators who sell someone else's goods, arbitrarily raising their prices. This statement is not entirely true, since the specialist carries out all his actions on completely legal grounds. The dealer in this case acts as an intermediary between the manufacturer and the consumer. He takes goods from the manufacturer at one price and sells them at another. It is called the selling price and is slightly higher than the original price. This is the whole secret. The difference between these two values ​​will represent the income of a regular dealer. His main task is to interest the buyer in the products he is selling. Essentially, a dealer's job is to make direct sales. It is for this that he receives his reward. The higher the sales volume, the greater his income. But in order to become a dealer of a specific product manufacturer, you need to conclude an appropriate agreement with him, where all aspects of their cooperation will be clearly spelled out.

Interest in an intermediary

Manufacturing enterprises, in the course of their development, sometimes reach a level where they already require the help of third parties in the matter of selling an increased volume of products. At this moment, individuals and legal entities have the opportunity to become a dealer of the manufacturer. To do this, they need to take certain steps. Firstly, in order to represent the interests of the enterprise, the intermediary must have the necessary knowledge in the field of trade and possess certain qualities, such as activity, determination, competitiveness and stress resistance. Only then will his candidacy be of interest to management. Secondly, in order to become a manufacturer’s dealer, you need to draw up the appropriate documents, namely an intermediary cooperation agreement. To do this, the other party must:

1) Be a legal entity.

2) Have the appropriate certificate.

3) Own an office for work.

Another important factor is finances. But here everything depends on mutual agreement. You can either buy the product or take it for sale, making a payment after its sale. But in the second case, the price of the product will be slightly higher.

Question of territory

Many enterprises invite companies to cooperate that want to become a dealer in the region and represent the interests of the manufacturer in this territory. This is done to improve the efficiency of interaction with potential clients, which entails:

• reduction of delivery times;
• expanding the range of products and services offered.

It is beneficial for a particular enterprise to have its representatives in different regions. This gives him the opportunity not only to be closer to the consumer, but also to ensure the presence of his products on the market in different territorial areas. The more people know about a product, the more likely it is that someone will want to purchase it. By increasing the number of such regions, the manufacturer has the opportunity to expand the geography of its sales. The management of the enterprise is especially careful when choosing a regional representative. He must have certain qualities:

• have at least one year of trading skills;
• own your own office for work and warehouse space for storing incoming goods;
• have a group of specialists ready to work on the development of a specific area.

Other issues are usually resolved by the parties during the cooperation process.

The path of the official representative

When embarking on the path of independent activity, not everyone has the opportunity to immediately open their own business or establish their own production. There are people who cope with sales faster than with production. They know how to solve issues related to sales, and this is exactly what a good dealer needs. But the work of an intermediary has its own characteristics and it is necessary to clearly know, for example, how to become an official dealer of a company. First you need to study different directions and choose a specific field of activity for yourself. Then, from a large list of manufacturers, select the one whose products you would like to promote. After this, you need to carefully consider the issues of supply and demand, identifying potential clients for yourself. Next, you need to contact the manufacturer with an offer of your services and, if the response is positive, formalize the contractual relationship. This way you can build a good business of your own. In addition, being an official dealer has its own advantages:

1) He receives products at special (dealer) prices, which are usually lower than for other buyers.

2) Such a seller may become the only one who will have a specific product in stock.

3) The dealer can always reserve goods for himself at the manufacturer’s warehouse or make a pre-order.

4) All orders from buyers in this region are sent to him.

And the most important thing is the opportunity to work under a well-known brand, which provides it with a decent reputation in the market.