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, 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 embark on the path of entrepreneurial activity from this very step. After all, few people 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 are:
- practical experience in entrepreneurship. Without it, it will be quite difficult to comprehend the basics of the profession. Qualification is needed especially if the employer is a reputable company;
- high activity and communication skills. In order to perform their duties qualitatively, the dealer must have public speaking skills. At the same time, in this profession there is no clear work schedule, and a person must be constantly energetic;
- stress tolerance. This quality is considered as one of the key ones when hiring, regardless of the proposed position;
- passion for work. Often, enthusiasm in work allows you to resolve a huge number of difficult situations.
To officially represent the company’s products, you will need a package of documents. Their presence is mandatory, as it must be carried out 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;
- get a certificate.
To sign the contracts, you will need documents such as:
- the passport;
- certificate of registration with the fiscal authorities;
- documents on registration in state bodies;
- bank account details;
- memorandum of association and articles of association.
Copies of all these documents will need to be certified by a notary.
How to become a manufacturer’s dealer?
Before you start working with one of the manufacturers, you should study the existing offers on the market. One way to resolve this issue is to visit the official websites of companies. In addition, it is necessary to analyze the existing market sectors in the region, identify the products that are most in-demand among consumers, as well as assess the employment of the market segment and identify potential buyers.
Often, companies looking for dealers in the regions impose such requirements on them as:
- registration as a legal entity or individual entrepreneur, which will allow you to sign a formal agreement with the dealer;
- the future representative should be well aware of the scope of the company;
- the official agent of the manufacturer must be financially stable;
- passing a number of licensing procedures in the event that the company’s activities are subject to licensing.
Enterprises offer their future representatives the following possible options for cooperation:
- by sales volume, when the dealer is obliged to fulfill the planned sales plan for a certain period of time;
- cooperation on legal content, when a dealership agreement is signed between the manufacturer and the entrepreneur and this cooperation is backed up by the presence of a certificate.
How to become a factory dealer?
As in the previous case, individual entrepreneurs and legal entities can obtain the official status of a representative of a manufacturing plant. At the same time, from the point of view of sales, it is the intermediary who takes 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 has not managed to raise start-up capital, then you can become an agent of the manufacturer without investing.
Under these conditions, there are the following options for cooperation:
- realization of goods under the order. To do this, the manufacturer signs an agreement with the dealer for the supply of goods at the dealer price. This product must be put up for sale in the dealer network. In this case, the official representative must pay the advance part of the contract to the manufacturer. The rest of the debt will be paid after the goods are sold;
- free testing, where free production samples are given to the dealer for a 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;
- the ability to explore the existing demand and market;
- a dealer business plan should be developed;
- be financially stable;
- have correct financial statements;
- ensure the availability of employees whose qualifications allow them to work with the manufacturer’s products;
- demonstrate an interest in and knowledge of the manufacturer’s products.
Having taken all these steps, you can prepare a commercial offer, attach your own business plan to it and send the entire package to the manufacturing company.
How to become an auto parts dealer?
The algorithm of actions that allows you to become an auto parts dealer is no different from the action plan for registering a similar form of cooperation when it comes to the production of other products.
How do firms select official representatives?
The selection of official intermediaries by manufacturing companies, especially when it comes to large manufacturers, is carried out through tenders. This is due to the fact that there can be many entrepreneurs who want to get this tidbit of the pie.
When making a final decision about a particular candidate, preference will be given to the one who best meets the criteria.
How much money is needed?
The question of how much money will have to be invested in order to engage in such a business is quite natural.
As noted above, in some cases this can be done without resorting to 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 amount of investment required will depend on the volume of the purchased lot and the type of product.
In conclusion, I would like to add that everyone will be able to try himself as a dealer, having passed all the necessary licensing procedures. It is important here to demonstrate a strong desire, to have the appropriate knowledge and to be ready to give everything to the cause at full strength.