home Analyzes What is meant by official distributor? What is the difference between a distributor and a representative?

What is meant by official distributor? What is the difference between a distributor and a representative?

A distributor is an individual entrepreneur or a separate company that purchases large quantities of goods from the manufacturer for subsequent trade through agents or the regional market. The main task is to distribute products throughout the world and declare the partner as a reliable manufacturer of quality goods. This profession is not an easy one, and in fact, to understand what a distributor is, you need to work at least a little as a salesman. This activity is very interesting, it is connected with communication, the ability to find a common language with a variety of people. A distributor has many different roles and responsibilities that are just as interesting as what they sell.

Distribution activities

The distributor begins to perform its direct functions from the moment when it purchases goods from a manufacturer, most often a foreign one. Cooperation with foreign companies brings more profit and is of significant interest to new consumers, for example Russian ones. Previously, many did not know the distributor, how important it is in the development of the economy and the sales sector in general.

The distributor’s work scheme is quite simple:

purchasing goods at prices from the manufacturer;
sale of products through dealers and agents of other companies or the regional market as a whole;
opening an importing company in other countries.

Some examples from history

Back in the early 1990s, the unknown Invite powder reached Russian consumers due to the fact that the producers of this instant juice ingredient knew what a distributor was. It was thanks to this system that the company's leaders managed to make a fortune and distribute their products throughout the world.

If, after long and hard work, a company eventually has an official distributor in Russia, then sales will be successful, because the Russian market is vast. The owners of large cellular companies, the Apple corporation, many cosmetic companies, etc. can boast of such examples.

Documenting

The distributor enters into an agreement with the manufacturing company, which clearly stipulates the sales rules, the territory covered, prices and much more. This is a wonderful opportunity to create trade and economic relations with foreign companies that are especially popular in the West. An importing company that independently sells products in other countries is a general distributor. When the supplier does not have the right to sell his goods to third parties, and the distributor must buy goods only from this supplier, then this is already an exclusive distributor. And the territory for is strictly discussed in the contract.

All rights and obligations of the parties are secured by the distribution agreement. Then the distributor receives from the general director of the manufacturing company an appropriate certificate indicating Now, we hope, everyone understands what a distributor is, what his responsibilities and main purpose are.

(distribution channel), which specializes in bringing goods or services offered by manufacturers to consumers.

Business. Dictionary. - M.: "INFRA-M", Publishing House "Ves Mir". Graham Betts, Barry Brindley, S. Williams and others. General editor: Ph.D. Osadchaya I.M.. 1998 .

Distributor English distributor - distribution

a legal entity or individual who purchases wholesale quantities of goods of a certain range, most often imported, in regional markets. D. purchases goods from a seller or manufacturer at his own expense and then sells them to the buyer. D. can provide marketing services, as well as installation and adjustment of equipment, training in its use. A possible spelling of the term is distributor.

Dictionary of business terms. Akademik.ru. 2001.

Synonyms:

See what “Distributor” is in other dictionaries:

Distributor... Spelling dictionary-reference book

Big Encyclopedic Dictionary

A machine in a bank for automatically issuing money from client accounts. Dictionary of financial terms... Financial Dictionary

- [English] distributor distributor] econ. 1) A COMPANY that sells products on the basis of wholesale purchases from large industrial manufacturing companies: has its own warehouses, represents the manufacturer on the market; 2) face or... ... Dictionary of foreign words of the Russian language

- (from the English distribution) a company, entrepreneur, carrying out wholesale purchases and sales of goods of a certain type in regional markets. Typically, distributors have the preferential right and ability to purchase and sell... ... Economic dictionary

- (from the English distribute distribute) in marketing (especially international) a company that performs the functions of a reseller in organizing the distribution of goods for a product manufacturer. The distributor can be either a subsidiary of the manufacturer or... Political science. Dictionary.

distributor- An independent wholesale intermediary engaged in purchasing products for the purpose of selling them to retail firms and stores, as well as industrial enterprises, cooperatives, and workshops for final consumption. [OAO RAO "UES... ... Technical Translator's Guide

- (English distributor) a wholesale organization that sells goods purchased under a contract with a specific manufacturer on a long-term basis. D. purchases and sells goods on its own behalf and at its own expense. Sometimes D. provides... ... Legal dictionary

- (English distributor), distributor (commercial intermediary), a link between producers and consumers of goods and services. Distributors can be supermarkets, wholesalers, dealers, brokers, etc... Modern encyclopedia

Noun, number of synonyms: 3 distributor (3) intermediary (33) distributor (33) ... Synonym dictionary

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Legends and myths of ancient Greece (audiobook MP3), N. A. Kun. Just as all roads lead to Rome, so the origins of European culture are found in Ancient Greece. Its legends and myths will tell you about the mighty Zeus and the beautiful Aphrodite, about the brave Apollo and who fell in love with... audiobook
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A distributor (from English distributor - distributor, distributer) is an official representative of a company that carries out large purchases of products for the purpose of their further sale. In fact, a distributor is a legal entity (IP, LLC) running its own business to promote a brand, increase sales volumes, and network marketing.

Roles and Responsibilities of a Distributor

Since the company representative is not an employee, but an independent organization, an agreement for the provision of services is concluded between the customer and the contractor. The list of responsibilities and functions that the distributor will have to perform are clearly specified in each item. Typically they include the following:

Branding. Brand promotion, increasing sales volumes, creating a positive image of the manufacturer. This is not a requirement, but is often necessary. After all, consumers often buy what they hear. Therefore, distributors who can competently introduce a new brand into the market receive a substantial additional payment to the regular rate;
Analytical work, demand control and rating for the customer. Direct work with consumers, conducting surveys, collecting other data is carried out in order to adjust the scale of production. Compilation and transmission of these materials is mandatory;
Installation and testing of equipment, installation of applications (software), delivery - are the direct responsibilities of the distributor if he sells household appliances or high-tech devices. If a brand representative promotes products through dealer centers, he is responsible for working with claims and objections, drawing up a report on identifying defects in the purchased batch of goods;
Transportation, storage of received goods;
Refund in case of refusal or defect.

Dealer and distributor: differences

Many buyers often substitute two concepts - dealer and distributor. In fact, their level of financial responsibility to the company is the same, but the range of responsibilities and tasks performed are completely different.

The dealer is the next link after the distributor. He has much more freedom of action: pricing, distribution and resale of goods, and so on;
The distributor has the right to sell surplus or surplus stock to a dealership, which will sell the products at a reduced price. In this case, the distributor and his client will bear full financial responsibility;
The dealer has the right to negotiate direct cooperation with the manufacturer. Thus, he will become the exclusive representative of the brand with the sole right to receive and sell the selected product in the region. Distributors do not have such rights; the only thing they receive a premium for is brand promotion;
Dealers and dealer centers are global retail outlets or individual sellers that sell a large volume of products. These organizations promote their own services, without caring at all about the name of their suppliers (manufacturers, companies, etc.).

Based on these features, it is more profitable for companies to work with individual distributors who will inform them about the level of demand, coordinate sales and promote the brand.

Direct sales to dealerships are only good if the products are exclusive and their sale does not require large volumes.

What is more profitable - distribution or representation?

Cooperation with large suppliers and manufacturers (especially well-known and popular ones) is always beneficial. Clients do not skimp on incentives, it is not so difficult to find buyers, you can even open your own store with a constant turnover. But what form of cooperation should you choose - official representation or distributorship?

Official representatives are sales agents (hired employees) who cooperate with retail outlets and individual entrepreneurs. They are not legal entities. Their main task is to find new points of sale and replenish stocks of regular customers in a timely manner. Representatives most often work for those who do not have the initial capital to register their own business or pay for warehouse space.
Distribution is a private type of business that belongs to the field of marketing. Distributors are independently acting agents who have the right to sell products from several organizations and receive unlimited income. They are financially responsible to clients (customers) and have the right to use the received goods for personal purposes, if the contract was terminated by the customer unilaterally.

Distribution in Russia is a popular type of business, which requires organizational skills, developed communication skills and knowledge of sales techniques (including remotely). Therefore, it will be useful for those who have chosen this path to know basic information about the profession.

From large industrial manufacturing companies for the purpose of subsequent sale of these goods to resellers or dealers in regional markets. It can carry out its activities both on its own and not on its own behalf, but at its own expense.

Distributors (distributor of information) are official representatives of the economic interests of the company.

In addition to performing the function of a reseller, a distributor can also provide marketing services, installation and commissioning services for equipment, as well as training in the operation of the latter.

Distributor- this is a wholesale or retail (it is understood that the distributor will sell to retail points of sale) seller with a highly organized structure of active sales.

Distributor in steelmaking - a set of mechanisms (units) of the smelting area, controlled by a machinist (converter operator). The distribution operator's responsibilities also include loading devices for the feed path of bulk materials, ferroalloys into the converter (into the ladle furnace) and the oxygen lance.

Examples of computer game distributors

Notes

Links

Raizberg B. A., Lozovsky L. Sh., Starodubtseva E. B. Modern economic dictionary. 5th ed., revised. and additional - M.:INFRA-M, 2007. - 495 p. Distributor
Article on the portal CRN/RE (“IT business”) about IT distribution in Russia - Black legends of distribution

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Synonyms:

Malovishersky municipal district
Russian jihad

See what “Distributor” is in other dictionaries:

distributor- distributor... Spelling dictionary-reference book

Distributor- (distributor) An independent intermediary or one of a chain of intermediaries (see: distribution channel; distribution channel), which specializes in bringing goods or services offered by manufacturers to consumers. Business.… … Dictionary of business terms

DISTRIBUTOR Big Encyclopedic Dictionary

DISTRIBUTOR- a machine in a bank for automatically issuing money from client accounts. Dictionary of financial terms... Financial Dictionary

DISTRIBUTOR- [English] distributor distributor] econ. 1) A COMPANY that sells products on the basis of wholesale purchases from large industrial manufacturing companies: has its own warehouses, represents the manufacturer on the market; 2) face or... ... Dictionary of foreign words of the Russian language

DISTRIBUTOR- (from the English distribution) a company, entrepreneur, carrying out wholesale purchases and sales of goods of a certain type in regional markets. Typically, distributors have the preferential right and ability to purchase and sell... ... Economic dictionary

Distributor- (from the English distribute distribute) in marketing (especially international) a company that performs the functions of a reseller in organizing the distribution of goods for a product manufacturer. The distributor can be either a subsidiary of the manufacturer or... Political science. Dictionary.

DISTRIBUTOR- (English distributor) a wholesale organization that sells goods purchased under a contract with a specific manufacturer on a long-term basis. D. purchases and sells goods on its own behalf and at its own expense. Sometimes D. provides... ... Legal dictionary

DISTRIBUTOR- (English distributor), distributor (commercial intermediary), a link between producers and consumers of goods and services. Distributors can be supermarkets, wholesalers, dealers, brokers, etc... Modern encyclopedia

distributor- noun, number of synonyms: 3 distributor (3) intermediary (33) distributor (33) ... Synonym dictionary

Books

Legends and myths of ancient Greece (audiobook MP3), N. A. Kun. Just as all roads lead to Rome, so the origins of European culture are found in Ancient Greece. Its legends and myths will tell you about the mighty Zeus and the beautiful Aphrodite, about the brave Apollo and who fell in love with...