What is a distributor and what does he do?

A distributor is an individual entrepreneur or an individual company that buys a large amount of goods from a manufacturer for subsequent trade through agents or a regional market. The main task is to distribute products around the world and to declare the partner as a reliable producer of quality goods. This profession is not easy and in fact, to understand what a distributor, you need at least a little work as a seller. This activity is very interesting, connected with communication, the ability to find a common language with a variety of people. The distributor has many different functions and responsibilities, which are no less interesting than what he sells.

Distribution activities

Direct distributor begins to perform its direct functions from the moment when it purchases goods from the manufacturer, most often foreign. Cooperation with foreign firms brings more profit and is of significant interest to new consumers, for example Russian. Previously, many did not know what a distributor was, what importance it had in the field of market relations, the development of the economy and the sphere of sales in general.

The scheme of the distributor is pretty simple:

• Purchase of goods at prices from the manufacturer;
• Sale of products through dealers and agents of other firms or the regional market as a whole;
• The opening of an importing company in other countries.

Few examples from history

Back in the early 1990s, an unknown powder, Invite, reached the Russian consumers thanks to the fact that the producers of this instant ingredient, which made it possible to get juice, knew what a distributor was. It is thanks to this system that the company's executives managed to make a fortune and distribute their products around the world.

If, after long and hard work, any firm eventually has an official distributor in Russia, it means that sales will be successful, because the Russian market is immense. Such examples can boast owners of large cellular companies, the corporation "Apple", many cosmetic firms, etc.

Documenting

The distributor enters into an agreement with the manufacturing company, where points of sales rules, covered territory, prices and much more are clearly stipulated. This is an excellent opportunity to create trade and economic relations with foreign firms that are particularly popular in the west. The importer company, independently selling products in other countries, is the general distributor. When the supplier does not have the right to sell its goods to third parties, and the distributor must buy the goods only from this supplier, it is already an exclusive distributor. And the territory for the sale of goods is strictly negotiated in the contract.

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