In this article, we will analyze who a dealer is and what he does, who can become one, what types of dealers exist today, what it means to be an authorized dealer, and what a dealer center is.
Who is a dealer?
The term “dealer” may mean a person who is an agent of a company that directly manufactures products. It is he who buys a certain number of products, depending on the existing demand for it, thereby ensuring the existence of a certain sales market. The source of income for such agents is the discount provided by the manufacturer.
In addition, there are also dealers who act professionally in the securities market and carry out purchase and sale operations on their own behalf at their own expense. This specialist determines and announces the purchase and sale price of shares or bonds and is responsible for the deadline for the execution of the assigned transaction. Those of these intermediaries who achieve success in this professional field, then become market makers.
In accordance with the current Russian legislation, only legal entities can become a dealer in the securities market. You can obtain a license for the right to carry out dealer activities at the Central Bank of the Russian Federation. Without this document, no one will be able to take part in exchange trading.
Specialists distinguish the following types of these specialists:
- exchange, which trade in securities and currencies on the exchange market;
- over-the-counter, such as car dealers.
If we take the possibility of these market participants as a criterion, then we should highlight:
- ordinary intermediaries;
- market operators that have great opportunities and are able to influence pricing in the market;
- market makers – large intermediaries who are able to take on some other obligations, for example, maintaining stability in the market.
Who can be a dealer?
In the case of an intermediary as an agent of a company for the sale of manufactured products, the legal norms require that only legal entities perform such a role.
When we talk about the securities market, then a self-regulatory organization is being created here, which has received a license from the Central Bank. Here, a professional participant in the financial market can be both a legal entity and an individual who has joined the designated organization, having paid substantial funds to the compensation fund and also received a license from the Central Bank of the Russian Federation.
The nuances of work
For those who are thinking about a career as a dealer, it is necessary to be aware of the existing nuances of work. In accordance with the signed agreement, this market participant can make such volumes of sales that will make it possible to come to a significant profit. To do this, you should work on the skill level of your own employees, which is necessary to ensure timely and proper sales.
As experience shows, it is better for designated intermediary traders to acquire their own warehouse. To stimulate sales of products, the dealer should provide a presentation on the existing range of products. In order to be aware of the existing product requirements, he must be in constant contact with the manufacturer.
One of the key tasks of the dealer is to analyze the market in order to have an idea of where exactly this product will be more in demand, and what pricing policy should be pursued depending on the selected region.
What does an authorized dealer mean?
In the case of concluding direct agreements with manufacturers of goods, one should speak exclusively of the official dealership. In these circumstances, he is not responsible. All questions arising regarding the quality of products should be resolved only through negotiations with the manufacturer. With an official dealership, the dealer does not incur any losses, as he works under the auspices of the manufacturer.
What is an authorized dealer?
If someone came across an authorized dealer, then, unlike the official one, he is responsible to the consumer for the products sold. However, in this situation, he will not be the exclusive representative of the manufacturing company.
What is a dealership?
Such a center is not only a point of sale for products, for example, cars, but also provides for its customer’s repair work in case of a malfunction of the purchased equipment, where only original components are used.
In addition, these centers enable their customers to purchase goods on credit. In the case of a purchase, such as a car, this center can offer car loans, installment plans or leasing services.
When buying products through these centers, prices are significantly lower than competitive prices.
For those who find themselves in the client base of such a center, the possibility of ordering spare parts on the official website of the manufacturer will be open.
Thus, dealers are able to provide significant support in resolving a number of possible problems. As for those who have decided to make such a profession a matter of life, it will be a very interesting and profitable occupation.