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.

Modern people increasingly want to become independent from the state and strive to work for themselves. Opening your own business is not an easy task; in addition to collecting the necessary information and documentation, you must have initial capital. However, not everyone has the opportunity to collect the required amount of money; in this case, you can become an official dealer. Many people do not know this concept, but it is a common phenomenon abroad. Let's try to figure out what the word "dealer" means and why it is more preferable to work in this direction than to open your own business?

Who is a dealer?

Types of dealers

• a dealer who is a participant in the securities market;
• a dealer who purchases wholesale and sells products at retail;
• a dealer who is a representative of the company, finds customers and receives a profit for this.

Working conditions as a dealer

To become a dealer , As a rule, it is necessary to have a stable financial position. If the candidate meets the following requirements, then he has the opportunity to be accepted into the team:

1. Preference is given to candidates with experience in the company's field of activity.
2. The dealer must have a business plan.
3. The representative must be interested in the company's services/products and be results-oriented.
4. The dealer must have the necessary equipment.
5. The dealer must have the ability to invest in procurement/construction.

The company is interested in promoting its products in different regions, therefore, if a dealer network is already developed in the city of your choice, you may receive a refusal. The solution is to look for a new manufacturing company or move to a region that is not occupied for activities.

Documents required to work as a dealer

You can become a manufacturer's dealer if you have certain documents. For a legal entity this is:

• Charter
• If available, the memorandum of association.
• Certificate of state and tax registration.
• A document certifying the authority of the manager.
• Premises rental agreement, if necessary.
• If there is an agreement with a sub-dealer.
• Manager's passport.
• Bank details.

If the dealer is registered as an individual entrepreneur, then you only need to have an individual entrepreneur certificate and tax identification number.

Benefits of working as a dealer

Working as a dealer has many advantages compared to starting a business on your own, the main one being receiving an already advertised product. This means that there is no need to spend money and time on promoting a brand and promoting a new product to the masses; this has already been done by a higher-level partner company.

Another important reason to become a sales dealer is the ability to choose the product you work with. If you have an affinity for sports products, you will have no desire to deal with food products and vice versa. The main component of business success is the desire to do it, and not the need to earn money.

To become a dealer, you do not need to spend money on training; the company offers it for free. This is an excellent chance to learn from a company that has proven itself in the market. The manufacturer, as a rule, trains its dealers in the basics of successful sales, marketing, after-sales service - in a word, it helps to establish all the processes that are necessary to sell the product. This is a significant plus, since achieving the results of a large company on your own is very problematic, and it can take years. Various seminars, trainings, trips to other regions to learn new working methods and other events often take place, because the manufacturer is interested in the quality of the work of its dealers.

Also, the advantages of dealership include the possibility of selling goods at selling prices, which will be supplied by a higher-level company. Thanks to this, there is no need to search for points of purchase of the necessary goods.

Becoming a factory dealer means gaining company experience that has been acquired over the years. This may help in the future to open your own company, a new brand.

Many companies specifically resort to cooperation with dealers, since in this way they can promote goods to completely different regions of the country without spending a budget.

Where to find companies for cooperation?

The desire to become a dealer is not enough; for this you also need to find a company to cooperate with. There are two options here.

You can register on job search sites, publish your resume with an offer of cooperation and wait for a response from companies or send responses to their vacancies.

Another option, the most productive, is to look for companies yourself. First, you need to decide in which area you want to become a dealer, study all the pros and cons of the chosen direction, find the manufacturer and go to its website. 90% of success is the choice of the supplier company, so you need to pay close attention to the choice.

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.

If you are toying with the idea of ​​starting your own business, then this article is for you. The idea presented in this article will be especially interesting to those who want to start their own business, but do not have the financial means to do so. We will tell you how to become an official dealer.

A little theory

Most, even fairly large manufacturers, do not have their own sales offices in most regions. They prefer to sell their goods through an extensive network of dealers. For the manufacturer, this form of cooperation is quite profitable - there are no costs for opening their own retail outlets. Thus, with a minimum of costs, the manufacturer receives its representative offices in the regions.

Now let's figure out who the dealer is. The word “dealer” has a definition - it is an intermediary between the manufacturer and the final buyer, acting in the interests of the manufacturer.

Depending on the area in which the dealer operates, they are divided into several categories:

• participants in the stock securities market;
• participants in wholesale purchases for subsequent sale of goods in small wholesale or retail;
• car dealers who receive interest from cars sold.

Becoming an official representative of a manufacturer in the region means not only getting the opportunity to sell products at the best prices, but also being, so to speak, an official representative of this manufacturer in your region.

In general, the dealer’s work can be divided into several stages:

• negotiation part - discussion of prices, working conditions, etc.;
• signing a contract;
• sale of the manufacturer's main product;
• sale of additional services and related products - warranty and post-warranty service, transport services, sale of spare parts, etc.

Being an exclusive dealer in your region is a very profitable business. Not only will you be able to represent the manufacturer individually in your region, but you will also be able to attract many buyers by offering the best prices. It will be much easier for you to deal with your competitors, since your terms will be more profitable for buyers.

What is needed to start

Before becoming a company dealer, you need to clearly define what you want to sell and how profitable it is. In addition, there are criteria that a potential dealer must have and to cooperate with the manufacturer directly, you must strictly meet these criteria.

In practice, situations quite often occur when someone who wants to become a dealer does not meet a number of criteria set by the manufacturer. To assess your chances of becoming a representative, you need to know these criteria. These are the criteria:

• communication skills are a must, as you will have to communicate a lot with people;
• activity – you need to work hard to be a successful representative;
• good negotiation skills and the ability to convince oneself that one is right;
• do not be afraid to show your own initiative;
• the ability to maintain calm and sober thoughts in situations other than standard;
• the ability to present yourself better than competitors.

Read also: What kind of business to open in a small town is profitable and promising?

If you think that you have all these qualities, or at least most of them, then you are quite suitable for work in such an area as representing the interests of a manufacturer in the regions.

Of course, the main skill of a representative is the ability to sell the product he represents on the market. The dealer must be able to convince the potential buyer that the product he offers is the best on the market and at the best price. In order to do this, you must be able to convince your interlocutor that you are right, and have a certain talent and charisma.

A very important character trait of a representative as a person should be the ability to accept refusal and, accordingly, failure of the transaction. It is important to be able to analyze mistakes made and not focus on failure.

Paperwork

In order to become a manufacturer's dealer, you need to collect a number of documents. This is due to the fact that in some cases the goods are given for sale and, accordingly, the manufacturer wants to make sure who he is dealing with in order to know that he will receive money for the goods provided.

The standard package of documents that the manufacturer wants to see consists of:

• certificate of state registration of a legal entity;
• availability of documents on renting office space;
• agreement on the provision of intermediary services.

Once the manufacturer has reviewed the basic documents and determines that you are suitable, you will be asked to provide additional documents, which consist of:

• identification document;
• statutory documents of your legal entity;
• agreement on the establishment of a legal entity;
• document on registration with the Federal Tax Service;
• valid account details at a banking institution.

Of course, each manufacturer has the right to require some additional documents from you. This will depend on what is produced at a given enterprise. For example, if these are alcoholic or tobacco products, then licenses will be needed to trade in these types of goods.

In order to attract the interest of a large and well-known manufacturer, you must stand out from other applicants for the role of representative in your region.

Perhaps the most important thing will be experience in this field. If you have experience working with products similar to those sold by the manufacturer, then you will gain a huge advantage over your competitors.

Having a ready-made customer base is also beneficial for you. In addition, the manufacturer will be impressed by factors such as:

• your business reputation;
• your ability to gather a team of professionals around you;
• whether you have a decent office and technical capabilities to sell the product;
• ability to organize warranty service.

How does a representative work?

When a cooperation contract is signed, the dealer decides how the policy will be structured to promote the manufacturer’s products in a given region. To do this, first of all, an analysis of the state of the market in the entrusted territory is carried out.

Demand for the products presented is analyzed and options for increasing demand are considered, if necessary. Ways to promote products are being developed. At the same time, we should not forget that analysis of competitors’ offers and pricing policies is the basis of market analysis.