Who is a dealer? Profession dealer main responsibilities.

In the field of production and trade, you can often hear the concept of “dealer” - who is this? The modern market cannot function effectively without dealers, and in this article we will explain in simple language why this is true. Let's consider what the work of these sales agents consists of, what are the specifics of their activities, how do they differ from distributors and why is their work needed in the modern economy?

General information about the concept of “dealer”

Who is a dealer and what does he do? This word is of English origin and means “merchant”, “dealer”, “agent”. The Russian language came into use about 20-25 years ago. This is the name of an organization that purchases large and medium-sized quantities of goods in bulk for their subsequent sale at retail.

Russian-language Wikipedia refers this concept only to the securities market, but in practice, dealers are also actively involved in trade, acting as intermediaries between manufacturers of various goods and buyers.

In the broad sense of the word, the dealer is a partner of the company, whose products it sells, by its representative in a certain country or region. Its main task is to expand the corporation's distribution network and distribute the company's products where the company cannot independently provide it without intermediaries.

In the broad sense of the word, the dealer is a partner of the company.

Differences between dealers and distributors

In the previous paragraph, we found out what a “dealer” is and what its main function is. However, in practice this term sounds together with another foreign word - “distributor”. Sometimes these concepts are confused with each other or even considered synonyms. But in reality they refer to completely different types of activities.

Distributors also purchase products wholesale from manufacturers, but sell them not to potential buyers, but to dealers or other intermediaries. Distributors almost never work with end consumers, while for the dealer this is the main sales channel.

Distributors and dealers in trade have different tasks. The distributor's goal is to distribute as much product as possible among the business audience, that is, organizations that will subsequently also sell this product. The dealer’s task is to bring the product to a specific consumer; they practically do not engage in resale to resellers.

What does a dealer's job include?

The dealer is engaged in the resale of manufacturers' products to end customers, but what exactly is included in his work?

1. Purchasing wholesale quantities of goods from distributors (less often, directly from manufacturers), concluding a dealer agreement with them.
2. Advertises and promotes a product, making it attractive to a wide audience of potential buyers.
3. Closes deals/makes sales.
4. Works for the image and reputation of the company, an important participant in the marketing network.

Dealership from the manufacturer is rare, most often agents are forced to purchase batches of goods from distributors. But why is it that it would not be more profitable to negotiate directly with the manufacturer? For a dealer, it might be easier and more profitable to negotiate supplies directly with the company producing the product, but this is unacceptable for most manufacturers.

The fact is that a significant part of large organizations, developing their own distribution network in any country, find in each region one official and reliable distributor to whom they sell large quantities of goods. This approach is more convenient than selling small quantities to different companies in the same region, as it minimizes risks.

For this reason, if in the region where the dealer plans to operate there is a distributor of the goods he needs, it is with him that he will have to cooperate. Moreover, both companies have absolutely equal rights, the dealer is not a subordinate or structural unit of the distributor. They are business partners.

The work of a dealer directly affects the business reputation of the manufacturer and the opinion of buyers about it.

The relationship between the manufacturer and the dealer - why do they sign the agreement?

Despite the fact that dealers are forced to purchase all goods from distributors, they also maintain relationships with the manufacturing company. Most often, the mutual rights and obligations of the parties are fixed by a special agency agreement. The dealer is the official representative of the company, his work directly affects the business reputation of the manufacturer and the opinion of customers about it.

The agreement most often specifies the conditions under which the “official” dealer representing the manufacturing company operates. Firstly, this is compliance with the image policy, including the special design of stores, product packaging, and customer service.

Secondly, the agreement includes a ban on dumping - lowering the selling prices of goods - and an obligation to adhere to a certain pricing policy. Manufacturers track the prices at which buyers purchase their goods and adjust their levels depending on the region.

Who is called an “exclusive dealer”

If the agreement, at the request of one of the parties, includes a condition that only this organization can sell the corporation’s products in a specific region (or regions), this gives the agent “exclusive” status. That is, the manufacturer does not have the right to enter into new dealer agreements in a region where it already has an exclusive representative. This is a kind of monopoly on the right to sell any product.

For the manufacturer, dealer exclusivity does not play any role, because its main goal is a wide presence in the market. Whether it will be implemented through one representative or through several is unimportant. At the same time, exclusive status gives the sales agent enormous competitive advantages and the opportunity to build an entire advertising campaign around them.

How dealerships work

Agents of large corporations usually use a dealership to sell goods- this is a specialized store or showroom where branded products are demonstrated and sold, and in some cases they are serviced and repaired.

The most understandable example in this case is car dealerships - this concept is known to every car enthusiast. Currently, they are available in all regions of Russia and the purchase of new real branded foreign cars occurs exclusively through them.

Most car dealerships sell cars from several corporations at once, which allows them to significantly increase profits. The most famous are: GENSER, “KLYUCHAVTO”, “AUTOSPETTSENTR”, “TRANSTECHSERVICE”, “AUTOMIR”.

The most obvious example of a dealership is car dealerships.

How does dealership differ from franchise work?

After reading all the previous information, you might think that working as a dealer is similar to working under a franchise. Of course, there are distant similarities: in both cases, the brand of the products sold is important. However, a dealer has several important differences from a franchisee:

1. The ability to independently build an advertising campaign and promotion strategy.
2. No monthly fee for working under a well-known brand.
3. At his own discretion, he includes in the assortment of a store or center the products of other manufacturers (such as car dealerships).

How to become a dealer

It is impossible to give an unambiguous recommendation on how to become a successful dealer of a particular product - the agreement between the agent, distributor and corporation is always concluded individually. As a rule, the initiative for the agreement comes from the future sales representative.

Most often, legal entities play this role.(less often - individual entrepreneurs) who already have some experience in the market and in the area in which they plan to sell products. They are required to have start-up capital, the ability to develop a client base, build a strategy for promoting products in the region, and sell well.

The importance of a dealer in today's market

Who is a dealer in trade? Currently, the role of dealers in the market is extremely high. Satisfying customer demand for quality products from global corporations occurs through distributors and sales representatives.

Almost the entire market for the sale of cars, household appliances and electronics, and partly clothing and mobile devices, is built on this basis. Dealers help large corporations, whose offices and production facilities are located on different continents, create a worldwide sales network.

Local dealers are well aware of the specifics of the country or region in which they sell, so they can adapt the corporation’s advertising campaign to the needs of local residents or even create it from scratch. It is the work of such agents that provides modern Russian residents with a variety of foreign goods.

Conclusion

A dealer in trade is an intermediary between the buyer and the manufacturer of the product. It is an independent organization, an independent legal entity, but at the same time it acts within the framework of an agency agreement and maintains the price level established by the corporation. It is virtually impossible to imagine the functioning of the modern market without this link.

The development of the modern international market constantly requires the emergence of new professional figures. Today, the main emphasis is on dealers and distributors, whose activities are very similar, but at the same time have many significant differences.

Who is a dealer?

A dealer is an individual or legal entity whose activities are aimed at buying or selling a specific product on its own behalf and at its own expense.

In other words, a dealer is a commercial intermediary engaged in the resale of products from another manufacturer.

Due to the large range of goods and services offered on the international trade market, a dealer can be:

• an organization that is ready to purchase securities, register them in its name and resell them;
• wholesale and retail company acting as an intermediary between the manufacturer and the consumer;
• organizations or individuals involved in dividing large quantities of products into small ones for the purpose of resale;
• an entrepreneur who purchases or improves real estate for the purpose of its further sale or receiving income from its use;
• a trade organization that acts as an intermediary between transport companies and their buyers;
• a legal entity that has entered into an agreement with a mobile operator for the distribution of its services;
• a company representing the interests of foreign companies in our country as a seller of goods or services produced by them.

Rights and obligations

As a commercial reseller, the dealer has a whole list of rights:

1. Call yourself an official representative of manufacturing or distributor companies.
2. Purchase goods with dealer discounts.
3. Represent the trade interests of manufacturers in a specific region or among a certain range of buyers.
4. Receive installments or loans from manufacturing companies to develop your activities in working with their goods.

With a wide range of dealer rights, giving him freedom of action in the field of promoting his trading activities, he is assigned a whole list of responsibilities:

1. Compliance with the frequency of purchases specified in the contract.
2. Compliance with the volume of purchase specified in the contract.
3. Compliance with the territorial boundaries of the sale of goods.
4. Use of all legal means of product promotion: advertising, promotions, etc.
5. Selling only one type of product or service, especially in a highly competitive environment.
6. Product maintenance (warranty and necessary repairs) after its sale, if required by the specifics of the product.

Who is a distributor?

A distributor is also a seller, whose role is played by an organization or an individual. He is engaged in the purchase of wholesale quantities of products of domestic or foreign production and their sale in regional markets.

Please note that if a dealer is a reseller, then a distributor is called a distributor.

To confirm the qualifications of a distributor, first of all, the person acting in his role needs to consolidate his importance in the market.

To do this he needs:

• develop an impeccable reputation;
• spread the brand;
• achieve high sales volumes;
• develop a dealer network in a specific region;
• become the owner of a retail network;
• become the owner of personal service centers;
• have connections with various manufacturers of the products that he sells.

Rights and obligations

The main rights of the distributor follow from the main business achievements:

1. Sell ​​products or services that the company supplies both to participants in the distribution system and to other persons.
2. Recruit new members to the distribution network.
3. Receive rewards for your actions in promoting and selling products.

Distributors' responsibilities include regularly performing the following tasks:

• monitoring and analysis of market conditions;
• advertising products in order to communicate information about them to the dealer;
• creation and promotion of sales channels;
• search for dealers;
• creation and staffing of logistics relations;
• bringing the content and structure of product items to customer demand;
• consulting and engineering;
• carrying out lending to dealers;
• creation of a service that services products under warranty.

Distribution activities are recognized as a rather complex type of business, especially when working with foreign-made products. First of all, this is due to the difference in the demand and needs of Russian citizens and foreign manufacturers.

The main difference between a dealer and a distributor

Despite the visual similarity, the activities of a dealer and a distributor differ significantly.
The main differences between them are the following:

1. The right of official representation. Distributors must purchase it from manufacturing companies, but dealers do not.
2. In financial benefit from the results of implementation. Unlike a dealer, a distributor's profit depends on his financial investments in purchasing products. In addition, their selling price is closely related to the cost set by the manufacturer.
3. In the purpose of the activity. If for a reseller it is important to deliver the goods to the buyer, then for a distributor it is important to create a strong sales network with the involvement of new dealers.
4. In promoting the brand. For a dealer, the popularity of the products sold does not matter, but for a distributor, it is important to promote a specific brand.

It is also possible to distinguish between a dealer and a distributor based on the degree of responsibility to consumers. The reseller, not being an official representative, is only obliged to service the goods sold within the established warranty period. The distribution company bears full joint responsibility with the manufacturer regarding the quality of the products sold.

When deciding to become a distributor or dealer of a company, it is important to immediately distinguish the features of their activities. The first thing to remember is that both specializations are sellers of other people's products, but one of them is aimed at direct resale to the consumer, and the second is aimed at distributing it between several entities.

The word “dealer” came to us from the English language; its literal translation sounds like “trader”. This article will focus on leaders working in the securities market.

Who is a dealer?

A dealer is a businessman who makes transactions the subject of which is. The dealer has the right to carry out such transactions exclusively at his own expense and on his own behalf. One of the subtleties of a dealer’s professional activity is responsibility for the quoted prices for the purchase or sale of securities, as well as responsibility for the timing of the transaction. Dealers who successfully cope with their professional responsibilities become market makers. Based on the Russian constitution in force today, a dealer can only be a legal entity. A license to carry out dealer transactions is issued by the Central Bank of the Russian Federation. If there is no such license, then the dealer will not be able to participate in trading taking place on the exchange.

For various types of activities it is necessary to have an appropriate license; the central bank issues two types of such documents:

1. To carry out transactions with government securities.

2. To carry out transactions with private (corporate) securities.

In order to be a reliable guarantor of the execution of transactions in case of unforeseen situations, the dealer must have a certain amount of funds. The minimum amount of such money is fixed by law.

What are the main responsibilities of a dealer?

By taking responsibility for setting prices for certain securities, the dealer creates a market. In addition to prices for documents, the dealer can provide various data that is of fundamental importance for the transaction, as well as conditions. Such conditions may be:

number of purchased (sold) documents;

the period during which prices will be valid;

and many other conditions.

In the case when the data announced by the dealer suits the client, it can move to the completion stage. The list of responsibilities of the dealer includes support of the transaction until its logical completion.

When reporting a transaction involving specific securities, the dealer has at his disposal information about the position of the enterprise to which these securities relate, but may be in no hurry to disclose such information. has the right to demand from the dealer the most complete information about the distributor (owner) of the securities.

Regulation of the work of the dealer by the existing constitution

Of course, each dealer is a more experienced and professional player in the securities market than most of his clients, which is why the legislation of all states in which the circulation of securities is possible clearly regulates the relationship between the dealer, the seller and the potential buyer of securities. The current constitution assigns the following responsibilities to the dealer:

1. All actions of the dealer must be aimed solely at the benefit of the client.

2. The dealer must strive to provide his clients with the most comfortable conditions for conducting a transaction.

3. The dealer must provide the client with the most objective and truthful information about probable risks, as well as about the position of the issuer at the current moment.

4. The dealer has no right to persuade the client to make a transaction by providing false information or deliberately distorting facts.

What is a dealer formed from?

The dealer's salary consists of:

Differences between the sale and purchase prices of the same package of securities.

Commissions.

Payments for informing the client.

In the securities market there are often dealers who successfully combine dealer activities while also being brokers.

The amount of the dealer’s starting capital is the most important criterion for obtaining a license from the Central Bank, because only the dealer’s own money can guarantee the completion of the transaction, which will satisfy both the buyer and the seller.

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After the end of the era of Soviet power, a fashion for borrowing from the English language arose in our country. This phenomenon was associated with changes in the economic sphere.

Today, things are such that there are more and more foreign words, and our fellow citizens are little by little learning to understand their meanings. But does everyone have any idea what a dealer does?

Dealer: who is he and what does he do?

“Dealer” comes from the English word “dealer”, which translates as “trader”.

Dealer– is a member of the marketing channel; a company that makes wholesale purchases and sells goods primarily at retail (or in small quantities).

How dealers work

Dealers are agents of the manufacturing company or. Strictly speaking, the dealer completes the intermediary supply chain, acting as a seller and distributor.

The dealer purchases a certain amount of products, focusing on demand, and thus guarantees the manufacturer a certain volume of the sales market. The main source of profit for the dealer is the discount provided to him by the manufacturer (supplier). Its percentage depends on the speed.

Of course, the dealer does not himself determine the price at which he will sell the product. This is done by the supplier to avoid dumping. As you know, excessively low prices have a detrimental effect on the market.

It is known that some companies that produce goods shift all the worries about their sale onto the shoulders of dealers, because creating your own sales network is not always convenient and very expensive. In this case, cooperation with a dealer is beneficial. As a rule, the requirements of the manufacturing company are very strict: it determines the size of retail space and reporting forms, and “imposes” its own symbols on the dealer.

The responsibilities of the dealer include not only the purchase and resale of products, but also the formation of their additional consumer value. For this purpose:

• qualified consulting;
• provision of additional services;
• sale of related products (of course, these products should not be produced by a competitor).

An exclusive dealer is an intermediary who has the exclusive right to represent the interests of the manufacturer in a particular area of ​​business, in a market segment or in a particular region.

Dealer in the securities market

As for a dealer in the securities market, he carries out transactions not as an intermediary, but on his own behalf. This is what distinguishes him from a broker, who performs intermediary functions. Such a dealer (according to Russian law, it can only be a legal entity) sells and buys currency, securities and precious metals, using his own savings.

A “regular” dealer is primarily an intermediary representing the interests of the manufacturer. Dealing in the securities market has its own specifics and does not involve intermediation.

Concept dealer comes from the English term dealer - trader, agent. A dealer is a participant in the marketing channel, a company that purchases products wholesale and sells them at retail or in small quantities. Dealers- agents of a manufacturer or distributor, acting as participants in its dealer network, thus, the dealer is the last link in the intermediary distribution chain and is in direct relations with the buyer.

Retail dealer- a trading company acting as an intermediary between manufacturers of goods and legal entities and individuals wishing to purchase goods.

Dealer activity– intermediary operations:

• representing the interests of the manufacturer (brand owner) in the market;
• purchase and sale of goods produced or sold by manufacturing companies or distributors.

Features of the dealer's activities are additional obligations to the manufacturing company or distributor that the dealer undertakes by publicly announcing sales prices with the obligation to execute transactions at these prices within a specified period of time. For many manufacturing companies, obtaining the services of a dealer is the main and only way to sell their products. Such companies do not create their own sales network, but say: “we are looking for dealers who sell our goods.” Such a scheme is certainly beneficial and convenient for the manufacturer (brand owner) and for the dealer.

Exclusive dealer is an intermediary, a dealer who has exclusive rights to represent the interests of a manufacturer or distributor in an industry, in a market segment, in a certain region.

If we talk about the activities of a dealer, then it should be remembered that dealership is a certain measure of responsibility and obligation to the manufacturing company or distributor that the dealer represents. If sales are going poorly and the manufacturer (distributor) does not receive the required volume of sales, or the dealer is not actively promoting the product and the manufacturer’s brand on the market, then the manufacturer (distributor) can replace the dealer? citing the latter's failure to comply with the terms of the dealer agreement or purchase and sale agreement. In this case, the dealership may be given to another dealer. Almost all companies whose marketing strategy is based on the principle “we are looking for dealers” offer terms of cooperation for the dealer, according to which the dealer earns money on a percentage of the company’s actually sold goods.