Dealer network development. Who is a dealer Dealer network development plan sample

Nesterov A.K. Dealer network // Encyclopedia of the Nesterovs

Actively growing companies may find that following traditional distribution strategies becomes a limiting factor in the company's further growth, or leads to an increase in the costs of the enterprise, without bringing significant results due to various kinds of objective factors. The solution to this problem is the development of the distribution system of the enterprise and the construction of a dealer network.

The specifics of building a dealer network

A dealer network is a set of trading companies that sell and promote the company's products to the final buyer. The main principle of the functioning of the dealer network is to create such a number of active dealers that will ensure market coverage and achieve the company's goals in this market.

Companies need an effective organization of the distribution system, which requires structuring work with representatives in the regions. Work with dealer networks should be based on the differentiation of dealers and the diversification of distribution channels in order to increase the efficiency of the sales system.

The formation of a dealer network can be long-term, require significant costs, both monetary and temporary, in conditions where progress in improving the efficiency of the company's sales system directly depends on building a dealer network. In this regard, the effectiveness of the development of this distribution channel as a whole, regardless of the industry and scope of the enterprise, depends on how formalized and objectively conditioned the work with dealers is. Consequently, enterprises inevitably face the question of how to effectively organize work with the dealer network, what effective measures to take in order to increase the efficiency of the enterprise distribution system.

The concept of the distribution system of an enterprise in modern conditions is based on the need to disperse distribution channels while striving to increase market coverage. In this regard, improving the efficiency of the distribution system of the enterprise and the choice of distribution routes belong to the strategic decisions of the enterprise. Therefore, the main criterion for such changes is the availability of sufficient time for their implementation.

Tools for the development of a dealer network on the example of a company engaged in souvenir products

3. DEALER NETWORK.

Let's break the paragraph into its component parts.

Part one. General information.

1. Definition of tasks and long-term goals of the dealer network of the trading Company;
2. Defining the organizational structure and solving other issues of the organization's management;
3. Determination of the number of sales channels, distribution (for example: the number of dealers in the network of the Ural region);
4. Determine the intensity of distribution of products by dealers (intensive distribution can be supplemented by exclusive or selective (selective) distribution, i.e. it means different products for different dealers, different consumer groups that are the consumer audience of a particular retailer). If such an item is not taken into account, then it can be written off;
5. Plan the management, maintenance of the dealer network;
6. Predict the increase in the dealer network in units of time;
7. Predict the increase in the product range over time;
8. Continuous evaluation of product profitability;
9. Formation of a positive image of the organization in the minds of the consumer and the dealer due to the wide information base and the quality of work, order execution.
10. Make a dealer map of the city, region (detailed list or database of enterprises):

• The name of the organization and a complete package of information about the company;
• Contacts and representative;
• The stage of loyalty to our trading company;
• It is worth answering the questions: “Who are they?”, “What is their lifestyle?”, “What are their interests?”, “External communications?”;
• Classification of the dealer's activities;
• What is the identity of the Company and the dealer? Common points or characteristics are needed that lead to the creation of points of contact;
• Assortment, quality and level of the dealer's product;
• The specifics of the dealer's activity;
• Location;
• Advertising activity;
• Work with our competitors (if there was or is experience, then what?);
• Resolved issues and issues in the process of being resolved, plans for further cooperation;
• Product promotion program;
• Terms of deliveries, shipments;
• The minimum volume of production per year;
• Periods of incentive actions (short-term);
• Work with a direct or indirect competitor (if any);
• The speed of order fulfillment, the work of the delivery service;
• Accounts receivable, etc.

Part two. Promotion of sales of products.

1. Progressive system of cumulative discounts for dealers (percentage of turnover);
2. Discounts on goods included in the catalog (new products);
3. Discounts on the purchased quantity of goods;
4. Rewards for the best presentation of the wholesale company and its product / advertising compensation (or advertising support from our side, subject to an increase in sales turnover);
5. Stimulation and strengthening of the spirit of competition through competitions, competitions (in terms of turnover, quantity, quality and speed of service, performance of work, etc.);
6. Distribution of free samples for individual use (for retail sellers);
7. Gifts, cards, drawings (short-term, forcing the consumer or partner to hurry up), promotions;
8. Value-based sales promotion (sells meaning, values, part of the company - a corporate element!);
9. Guerrilla marketing (eg, positive customer relationships, business cards, public relations, magazine articles, blogging with a regular readership);
10. Viral marketing (meme transmitted from one person to another: jokes, notes, pens, photos, videos, etc.); buzz marketing (in our case, this is the opinion that can originate from one dealer and pass in the form of a recommendation to another; the same situation is with the end consumer, where word of mouth, i.e. viral marketing operates);
11. The Internet is a powerful tool for influencing public opinion, so it is worth using its potential (thematic forums, blogs, communities, social networks, social news sites). A successful company prefers to be seen and heard.

Part three. Organization of interaction with agents (dealers) and end users.

1. Development and stimulation of positive relationships with dealers through friendships and partnerships that form one corporate culture and create a feeling of one team;
2. Transferring a sense of loyalty to the products of the trading Company; formation of a positive image of the organization in the eyes of consumers (the same loyalty);
3. Material motivation for the dealer is a percentage of the amount of the concluded contract. A progressive pyramid of rewards and gifts is also being built;
4. Or the “initial base bonus” formula: for a trial period, the dealer is provided with products at the expense of the trading company, an analysis is made of the dealer’s sales, his sales opportunities, as a result, pictures of the agent’s “working capacity” and prospects for further work with him are built, as well as the size of the commission. (Use if the dealer is interested in us and our products, but does not have the money);
5. Work with the end consumer at the level of interaction through intermediaries - dealers, as well as through an Internet resource that requires good and constant promotion, updating (see the paragraph "Internet resource" for more details).
6. A dealer agreement is concluded between the Company and dealers, which specifies

• Organizations that have entered into this agreement;
• Subject of the contract;
• Responsibilities of the dealer (for example, providing product advertising; making a sale; registering buyers; informing consumers; protecting the interests and rights of the distributor (or vendor), analyzing market conditions);
• Responsibilities of the distributor (or vendor): coordination of the number of lots, quantity of goods, delivery time; providing advertising information about the product; transmission of a list of answers to "hot questions" of consumers; if necessary, the work of training at the expense of the trading company; appointment of a responsible person; free sample transfer, etc.;
• Product cost and settlement procedure: the trading Company sets the maximum or minimum price of the product for the end user, the value of which is negotiated between the parties (vendor and dealer); the dealer can sell at his own price, but focusing on the order of the trading Company (and therefore sell cheaper if the maximum bar is set; sell more if there is a minimum bar); the quantity of goods in the lot is specified (for example, this is the nth number, which must be at least the number X); the value of the dealer discount and remuneration, as well as the fact of the transfer of goods (delivery-acceptance from the warehouse or organized delivery) are negotiated; among other things, the contract includes payment for the received batch and the possibility of prepayment;
• The procedure for the delivery and acceptance of the goods of the Company: for example, it is carried out at the warehouse of a trading company, and the fact of transfer itself is documented by an act of delivery and acceptance of goods; here the item related to the filing of a claim in relation to the goods finds its rightful place;
• Responsibility of the parties: product quality issues, product delays, breach of contract (for example: in the case of working with a competitor), etc.;
• Grounds for early termination of the contract;
• Contract time;
• Additional terms of the contract (for example, disputes and disagreements);
• Applications: product description, price list, dealer discounts, acts, etc.

Part four. Unleashing the potential of the dealer network.

1. The network of regional dealers is tied to branded dealer centers in the region; dealer center - reports to the main office (executive director);
2. Development of dealer selection criteria (dealer reputation check);
3. Development of a pricing system, a system of discounts for the dealer center and regional dealers;
4. Documentation of relations, dealer agreements, development of the Regulations on distribution, work on the creation of effective distribution (planning the work of agents, integrated management of dealer centers, prioritization of work with dealers and analysis of distribution efficiency due to a professionally debugged system for monitoring their work. As you can see, monitoring of dynamics is implied purchase volumes)
5. Organization of a system for automating the planning of the delivery of goods to the end consumer (this implies a special management program that allows you to control the movement of goods in time and space: from the acceptance of an order to its arrival at the place);
6. Organization of "eventfulness" (promo) in the dealer network;
7. Developed information technologies in the sales network (for example, operational work through the Internet account of the enterprise, where many processes are reflected in transparent usability and “action tools” are given);
8. Sales planning for regional dealers;
9. Establishment of control of the trading wholesale Company over the margins of dealerships; control of dealerships over margins of regional dealers;
10. Constant optimization of some elements of the organizational structure; work on debugging management;
11. Positioning in the market due to the USP, due to the selling idea. Improvement and modernization of the USP due to well-known generations of ideas or "Lateral Marketing" (F. Kotler);
12. The potential of the dealer network lies in quality. In order for us to have the quality of distribution on hand, we need to carry out

• Proper warehousing of commodity groups;
• Competent management of stocks and redistribution;
• Prompt transportation (in the event that it is not carried out by a dealer);
• Optimal order management process due to automation and innovativeness of processes;
• Logistics cost analysis (well-established commodity distribution infrastructure);
• Construction (petty and thorough!) of an operational communication network necessary to manage significant information flows.

13. It turns out that the chain now consists of four components:

Part five. Questions for discussion on the topic of sales. What needs to be done in order for dealers to agree to buy from us?

1. Due to the USP (own product matrix + speed of execution + manufacturability + a full-fledged website for dealers and regional distributors);
2. Due to the offer of favorable conditions (low cost, mobility, manufacturability, bonuses, reduction of receivables with new good purchases of goods);
3. Decrease in advertising costs and increase in trade marketing costs (well-organized stimulation of resellers will increase the level of sales and distribution, contribute to an increase in stocks of goods and an increase in off-season trade activity, and increase loyalty);
4. Work with each retail outlet not according to general schemes, but according to individual schemes subject to operational change (for example: an advertising agency, a souvenir shop, a hotel, a kiosk);
5. Possibility of representation: in the dealer network there are representatives from the wholesale Company, for whom a workplace is established in the retail sales offices;
6. Viral marketing (worthy of a separate topic). This requires the following activated elements:

• Comfortable environment in the company itself (corporate culture in the organization);
• Mental and competent organizational moments;
• Maintaining a trusting relationship with the existing customer base;
• Expansion of the product line;
• Long-term planning;
• Favorable attitude of the general public and a number of other points.

7. Next, after looking at the “N” site, I added a small fraction of additional services that should be expanded in the merchandise dealer network:

• Free production of layouts for applying symbols;
• Providing product samples and catalogs;
• Free delivery of goods within Yekaterinburg. Delivery directly to dealer customers is possible;
• Organization of an exhibition of exclusive products in our office;
• Inclusion of exclusive products in the list of products required for presentation in the offices of our clients.

Modern society is developing every day at a rapid pace, there are more and more new professions and terms. So, quite recently, now well-known dealers and intermediaries were called merchants. However, in the current market relations, the differences between different types of distributors of goods are clearly defined. Dealers and distributors - who is who, we will try to figure it out in this article.

Who is a dealer

The word "dealer" is of English origin and translates as "agent, merchant". A dealer is a firm or individual that buys products in bulk and sells them in small quantities or at retail.

Also, this group of dealers includes agents of the manufacturer or distributor participating in the transactions.

Thus, the dealer occupies the last place in the commodity exchange chain and is in direct relationship with the final buyer. This is the main answer to the frequently asked question - what is the difference between a dealer and a distributor.

Dealer types

There are two types of dealers in the trade area:

1. A retail dealer is a classic type of intermediary between a trading company and legal entities and individuals who wish to purchase goods.
2. An exclusive dealer is an intermediary in the sale of an original rare product in a certain region. He owns the right to represent premium products and has the opportunity to make unlimited profits.

To better understand the difference between a dealer and a distributor, consider their main functions, rights and obligations.

What is the work of dealers

Dealer activity consists in performing intermediary operations:

• purchase and sale of products manufactured by enterprises or sold by distributors and owners;
• representing the interests of the manufacturer of goods and its trademark in the market.

Cooperation between dealers and product owners implies the conclusion of an agreement that defines the rights and obligations of each party. But, in addition to the delivery and payment of goods, dealers are required to adhere to certain principles. Thus, the intermediary, in addition to the basic functions, has additional rights and certain obligations to the manufacturer.

In other words, the dealer is fully responsible for his activities, and if the terms of the contract are not fulfilled, he may lose his job. So, if sales are bad, the agent is not actively promoting the brand, and the owner of the product does not sell the required amount of products, the company may refuse the services of such an intermediary. In this case, the dealership may be transferred to another dealer.

In order for the intermediary to be interested in sales, all manufacturing firms and distributors offer agents a percentage of the actual volume of goods sold, in which the dealer differs from the distributor.

Dealer rights

Each dealer has the right:

1. Call yourself the official representative of the manufacturer or distributor.
2. Receive goods subject to dealer discounts. He plays the role of a reseller, so he buys products at special prices.
3. Represent the trading interests of a manufacturing company in a particular region or among a particular circle of buyers.
4. Get a loan from a manufacturer to develop your trading activities. It follows from this paragraph that the intermediary does not have to be financially secure. What is the difference between a dealer and a distributor? The fact that he can start his activity with a minimum contribution.

Dealer Responsibilities

There are many more professional features that illustrate the difference between a dealer and a distributor. What is the difference can be determined by the requirements put forward by manufacturers. So, the duties of the dealer include:

1. Planned purchases - the dealer must buy goods in a certain quantity and with the frequency specified in the contract. If for some reason the intermediary could not sell the required volume of products, then the difference is carried over to the next period. The fact is that the subject of the contract is the purchase by the dealer of goods from the manufacturer, and not its sale to the final buyer. Therefore, the agent is obliged to buy products in a specific volume. When the intermediary is already the owner of the goods, the manufacturer is not interested in the relationship of the dealer with third parties.
2. Territoriality - the intermediary has its own area of ​​implementation and must adhere to it. As a rule, such a sales territory coincides with the geographical or administrative-territorial division of the country. It can be a village, a city, a region or an entire state. If the contract provides for the right to sell in a particular territory, the dealer can supply the market with his goods in a single person. Although it is possible that other agents with similar products will work in this area. Such saturation with intermediaries is typical for consumer goods (for example, food).
3. Promotion of goods - this obligation applies to every trader - dealer or distributor, but it manifests itself in different ways. In this paragraph, there are features of each type of trade, which also give an answer to the question - what is the difference. Dealer and distributor are almost equally obliged to promote the sale of goods. Only each of them uses its own marketing tools. So, the dealer must carry out various promotional activities and promotions. Thus, the intermediary actively advertises the commodity producer. And if there are several intermediaries of such a firm in the territory, the promotions of one agent should stimulate sales of all dealers. Promotion is financed only by the intermediary. By comparison, the distributor's marketing campaigns are paid for by the manufacturer of the product.
4. Trade only goods of one manufacturer. This is especially controlled when the company is fighting with competitors for the sales market. As a general rule, dealers of the same brand must adhere to a specific company style. For example, wear branded clothing, use special equipment with advertising pictures and slogans.
5. After-sales service - in addition to the sale of goods, the dealer must provide warranty and post-warranty repair of the sold products. Warranty repair is carried out free of charge for the buyer, and the costs incurred by the dealer must be reimbursed by the manufacturer.

Also, the intermediary is obliged to serve customers at a high level, since he is the face of the manufacturer. During communication with the dealer, buyers form an attitude towards the brand, which significantly affects the indicator of commodity demand.

Sometimes the contract may provide for additional obligations: supplying the manufacturer with materials and raw materials, crediting production as an advance payment.

Who is a distributor

A distributor is a natural or legal person who is the official representative of the manufacturer and performs the functions of distributing goods from the enterprise to retail or wholesale resellers - dealers. Such a distributor is an intermediary between manufacturers and subsequent traders. This is an important feature of how a distributor differs from a dealer. Although there are some cases when the distributor works with end customers.

A distributor can be either a large company or one person with certain skills and knowledge.

In addition, the distributor has the exclusive right to sell goods at a reduced price without trade margins. These are the most important differences between a distributor and a dealer.

Distributor functions

The functions of a distributor and a dealer are very similar. The distributor is also engaged in the sale of goods, replenishment of stocks of products and the search for ways to sell them. But still there is a main feature that distinguishes a distributor from a dealer - it is the development and maintenance of a dealer network. That is, the distributor is constantly looking for new intermediaries. Thus, in order to increase large sales volumes, each distributor tries to create his own dealer network, which would bring a stable regular income.

Requirements for distributors

In order to fulfill its functions, the distributor must meet certain requirements. So, it must have:

• a specially designated place for storing the required amount of goods;
• own dealer network;
• funds for lending to intermediaries;
• qualified personnel.

Such differences between a distributor and a dealer indicate a certain complexity of the profession, since the distributor must have a certain material basis.

Who is more important - distributor or dealer?

Each manufacturer at the very beginning of his activity wants to create a developed sales network for his products. To do this, he uses both distributors and dealers. Both of them perform the same role - the sale of goods. But who brings in more income?

In terms of quantitative indicators of sales and profits, the distributor can be considered the most significant link in the trade chain.

As a rule, an experienced distributor has a large sales network, which ensures stable sales volumes.

But if dealers are removed from this process, distributors will be forced to look for buyers on their own. And this will slow down the auction and significantly affect the profits of the manufacturer. After all, the ability to work with customers is what distinguishes a dealer from a distributor. Therefore, in the process of trade, both distributors and intermediaries are equally important.

The modern Russian language is developing along with the economic growth of the country, there is a need for borrowed words, the use of which was not necessary in accordance with the peculiarities of the economic and market systems of the Soviet Union.

What is dealership

In the conditions of a dynamically developing Russian market, a business lexicon has also formed. Thanks to the media, people began to recognize more business words and finally stopped confusing a dealer with a leader. But recognition does not always mean understanding. In order to finally understand what the word dealer means, it is necessary to delve into the essence of the issue.

So what is a dealer? Dealership refers to two main activities:

• A dealer is a direct seller, a distributor. An individual or entity that purchases a large amount of a product from a company (or supplier) at a floor, discount price, and then sells it at a higher price. In other words, a dealer is a commercial intermediary.
• The dealer is one of the key players in the securities market. He enters the market at his own expense, acts directly on his own behalf. In this case, the dealer is not an intermediary. He is engaged in the purchase and sale of securities, precious metals, using only his own resources.

When a dealer acts as a seller, purchasing goods, as well as services, in a specific volume, he thereby establishes a sales market for the supplier. The main source of dealer profit is a percentage of the discount provided to him, which is set depending on the turnover. Moreover, the manufacturer often offers the dealer to set a certain price level in order to avoid market failures.

First of all, a dealer is a partner who thinks not only about his own interests, but also about the interests of the company, since his activities are not carried out in the first person, but on behalf of the supplier or manufacturer company. Its tasks include not only the purchase, delivery and sale of goods, but also the provision of a certain consumer value for them. There are a number of commonly recognized mechanisms for this:

• Consulting qualified specialists;
• A wide range of additional services;
• A wide range of related products included in the list approved by the dealer agreement and many others.

In some cases, the terms of the dealer agreement are quite harsh: every detail is clearly specified, up to the size of the retail space and the use of the supplier's symbols.

But, in connection with the benefits of dealership, most of the suppliers give the creation of a network for the sale of their products in the hands of dealers. This is quite practical and profitable for both parties to the transaction.

What is an official dealer

When concluding direct contracts with manufacturing companies, we are talking about official dealership. In these cases, the dealer is released from liability directly. All questions about the quality of products, as well as when defects are found, are sent only to manufacturers. The official dealer does not bear direct losses, as it acts on behalf of the manufacturer. The advantage of cooperation with an official dealer for consumers is the provided product guarantees and various related services. In auto centers, this can be:

• Assistance in obtaining a car loan;
• Vehicle insurance;
• Registration.

Dealer network

A dealer network is an interconnected chain of intermediary partners that bring directly to the consumer the manufacturer's products under its single trademark. The dealer network is the most effective economic tool for manufacturers, as it minimizes risks and cash costs, while expanding the sales market. With minimal costs (excluding, for example, communication costs, transportation costs), the quality of sales is growing steadily. But the growth of dealer networks poses a number of challenges for manufacturers:

• Refinement and verification of market information received from dealers;
• Constant monitoring of the activities of dealers;
• Additional resource for managing dealer networks;
• Optimization of costs that support dealer activity.

Manufacturing companies must improve their dealer network by effectively regulating it, focusing on consumer needs.

How to become a dealer

A dealer is, first of all, a partner who invests his money and his time in the business, having, accordingly, a considerable profit.

If you have an idea to engage in dealership, then if you wish, it will not be difficult. First of all, it is important to know that only a legal entity can become a dealer, so you need to be puzzled by its creation.

Then it is necessary to conclude a dealer agreement with the supplier or directly with the manufacturing company. When concluding a contract, it is important to consider the following:

• If funds are available, use the services of a marketing agency that will assess market conditions, its saturation, and real value. If funds do not allow hiring a marketer, you can use the necessary statistical data that is in the public domain;
• Check all conditions and restrictions on the part of the supplier specified in the contract;
• Specify your profit and other benefits in the contract;
• Engage lawyers to review and clarify this agreement during the first steps in the dealership;
• As much as possible check the transparency of each clause of the dealer agreement (agreement).

It must be remembered that the amount of your profit will be proportional to the volume of sales. The level of competition in the dealership is quite low, therefore, sales growth can be planned in advance. With long-term cooperation, positive recommendations also appear, and this leads to more trusting partnerships, and, as a result, to an increase in your dealer discount and bonuses from suppliers.

Organizing your own distribution network or working with dealers? Experts talk about what is more effective and in what cases, using the example of their companies.

Networking

Volumes, timing or control?

If we talk about the effectiveness of one or another way of organizing a network, everything here depends on the market, on the product and on the goals that the company sets for itself. When the company's goal is only market share, then own network is more profitable. In terms of sales, having your own distribution network will do better. All technologies are in the same hands, we can fully control the process. On the other hand, if we consider efficiency, taking into account salaries and profits, owning a division is much more expensive and requires a large investment. Therefore, from the point of view of minimal investment, maximum payback and minimum term, dealers are profitable. Third-party dealers are a less resource-intensive option: you sold the product, got the money quickly and invested it. But at the same time, you cannot control this process, influence the volume.

Terms must be transparent

Another serious issue in working with dealers is manageability. We have been developing the dealer network for a long time, as we consider this way to be quite effective, and we know that one of the main points is the utmost regulation of relations between the company and the dealer. A transparent system of bonuses, clear terms of cooperation, prescribed guarantees for the fulfillment of obligations directly affect the efficiency of the process. Therefore, we always conclude an agreement in which we prescribe in detail all the conditions for cooperation. And it works. The main thing is to clearly understand what is meant by efficiency - the level of sales, the level of profit, the level of growth. If now we create our own retail network of 2,000 outlets, then sales will be 30 percent higher. But considering what kind of investments this is and how much they will fight back, this is unprofitable for the company. So you always need to weigh the level of expectation of sales and costs.

Igor KAMELKOV, Retail Sales Director, RALF RINGER

Own distribution - reliable protection and the key to success

Working with dealers is currently the most common way to sell products. Such a scheme is available, since it does not entail significant costs for the manufacturing company. At the same time, distribution through third-party dealers is associated with certain risks and cannot guarantee the manufacturer effective work with the retail network. Building your own distribution is a scheme that can bring sustainable success. Our company is both a manufacturer and a supplier of its products. We fully control the entire business process from production to delivery and placement of products on store shelves. This has a positive effect on sales dynamics: in 2007, the growth of the presence of our products on the territory of the Russian Federation amounted to 200%.

If we analyze the advantages of our own distribution, we can name three main points. First, retail coverage. The appearance of goods on the shelves

also depends on the correct presentation of products to retail managers. Third-party distributor sales agents work with a wide range of products and do not put much effort into a particular brand. To show the “goods by face” is best done by a person who is personally interested in promoting the goods. Our company employs a staff of sales agents who work to expand and ensure the constant presence of the entire product line in retail outlets. As a result, Khortytsya is successfully exported to 77 countries of the world. The second point is logistics. Given the size of the country, it is necessary to note the high risk of logistical failures, which is typical for our market. Own distribution significantly reduces these risks. The third important advantage is the guarantee of product quality. Own distribution is the most reliable protection: products end up on store shelves from production. As a result, the buyer is 100% sure that the purchased products are of absolute quality.

Roman MARCHENKO, General Director of the Russian representative office of TM "Khortytsya"

Effective development of the dealer network

Dealer types

Dealers help sell. The more of them, the higher the sales, as a rule. Therefore, the development of a dealer network for a company that wants to have high sales is one of the top priorities. Networks do not develop by themselves, they need to be dealt with by investing time, money and other resources, you need to constantly look for new dealers.

Finding new dealers is a rather difficult task, because there are nuances here. The problem is that there are two types of dealers. The first type is monetarists. The essence of this type lies in the formula "money - goods - money." They have money, they invest it in a product in order to earn more money by selling it. Money is their main resource, which they are looking for the best use.

The second type is sellers. The essence of this type lies in the scheme "sales - goods - sales". They differ from the first type in that, first of all, they invest not money, but their ability to sell. The ability to sell is their core competence and the main resource they are looking for the best use. In fact, by becoming dealers, they monetize their ability to sell.

Proper development of the dealer network

It would seem that there is no difference what type the dealer is, as long as he buys as much as possible and as often as possible. However, there is a difference and it is huge. The bottom line is that the goods are not purchased by the dealer for themselves. Goods are purchased for resale. If the dealer is a monetarist, if he does not know how to sell, the goods will “hang” with a 99% probability.

A monetarist with "hanging" goods is a source of problems. First, it can break the market. He thinks through the prism of money, respectively, in order to return the money at any cost, he will begin to reduce the price of the “hanging” product, and this kills the market, devalues ​​the product and damages profits. Secondly, he can try to return the goods, which is also not very good.

Obviously, the development of a dealer network with the help of those who simply know how to invest money, but do not know how to sell, is associated with a large number of risks. The most important of them is the risk of bankruptcy. You count on dealers, plan sales volumes, and in the end they slow everything down. It is much more reliable and efficient to work with those who know how to sell well.

Where to find quality dealers?

People who know how to sell are hard to find. Therefore, it is also difficult to find a company that knows how to sell. All these people and companies are usually busy. You can accidentally run into those who are not busy yet, but it's hard. You can try to lure yourself such people and such companies. However, in the end, all this can be spent so much time that you have to close.

The most obvious solution is to create dealers who know how to sell

The most obvious solution is to create dealers who know how to sell. To do this is easy enough. You just need to organize courses within the company to train everyone who wants to sell your products or services. Due to the fact that sales of your products will be taught, this will guarantee that dealers will not start working with other companies.

Sales of each specific product involve nuances. These are the ones that should form the basis of the curriculum. Since a person himself has not learned to sell anywhere, it means he will not learn. Those. he won't be able to sell anything other than your product. Thus, you get a loyal dealer who is attached to you, who sells only your products and services.

How to grow an effective dealer?

A person buys goods and services to realize his ideas. Accordingly, your product is needed insofar as a person has ideas that he can implement with his help. This means that teaching a person to sell goods or services is, first of all, telling him about the ideas that a product or service can implement and how to convey them to customers.

An idea can only be conveyed by someone who has been pumped with it, but usually this is a problem. Usually, few people in the company know what ideas a product or service can implement, and few people know how to convey them. Accordingly, the first thing to do is to understand what ideas the product can implement and upgrade them. Someone in the company needs to upgrade them in order to further upgrade neo-dealers.

After someone in the company has pumped the right ideas, he will be able to stamp dealers for her. He will be able to introduce ideas into dealers, thus turning them into agents of the company. These will be not just dealers, but the company's agents in different regions. They will be part of the team, they will play in its interests, they will be its eyes and hands in different regions.

Dealer network development system

Finding a large number of effective dealers requires systematic and systematic work. To perform this work, it is necessary to organize an effective system that will “stamp” dealers and thereby develop the dealer network. Creating dealers without a system is expensive, time consuming and inefficient.

The development of a dealer network cannot be left to chance if there is a desire to have large and stable sales. Only systematic and systematic work gives a qualitative result. If there are no appropriate technologies, methods and knowledge, you can always turn to professionals who will provide all the necessary assistance in building a powerful dealer network.

How to attract new dealers to cooperation?

Based on what criteria do dealers accept the terms of cooperation with a new supplier or leave competitors? The importance of supplier selection criteria is listed in descending order.

1. Competitive advantages of the product (uniqueness). Most dealers prefer this criterion. The dealer is interested in selling and promoting those products that have competitive advantages based on their consumer properties of the product. Uniqueness, "trick" - from the whole variety of products, it is important to give the market "novelty", "a breath of fresh air" and thereby stand out in the minds of buyers as innovators. Brand awareness is also a big plus in choosing a supplier. An established brand is much easier to sell than an unknown product.

2. The size of the dealer discount. Pricing in this distribution channel plays a very important role. The goals of the dealer network development are to increase sales volumes and expand the sales market. Dealer's interest in promoting the supplier's products directly depends on the dealer's margin level. Why is the dealer fee called "dealer discount"? After all, many companies that work in this distribution channel have the concept of "dealer price". The difference between these two concepts is fundamental. When we talk about the dealer price, we mean the absence of a recommended retail price. This is a common mistake many companies make. This mistake is exacerbated by the fact that the supplier company can also carry out retail or corporate sales.

In this case, price confusion and lack of recommended retail price leads to price competition both between dealers and between supplier and dealers. Price competition kills margins, leads to a decrease in sales, profits, profitability, weakens the barrier to entry into this market for competitors who take full advantage of such supplier errors. Another important rule. If a manufacturing company is engaged in retail, corporate, project (long) sales in its region, then it is necessary to develop a dealer network only in other regions!

3. Registration of points of sale. WMD is a whole range of activities that includes not only the provision of product samples by the supplier, but also related promotional equipment for the effective presentation of goods at the dealer's point of sale. These include: interior signs, exhibition stands, racks, information boards, prom tables, booklet holders, coasters, "silent" sellers, etc. Of course, we do not forget about catalogs, booklets and other promotional products. Naturally, for the dealer, an acceptable option would be WMD without payment. In this case, you can conclude an agreement for the safekeeping of samples of goods and equipment. In practice, the supplier most often offers significant discounts on exhibition samples of goods and deferred payment.

4. Supply logistics. One of the most important aspects of cooperation between a supplier and a dealer. The delivery time of the goods, as well as the obligations of the supplier to deliver the goods within the agreed time, largely determine the speed of the sales cycle from the production of goods to delivery to the final consumer. The minimum terms of delivery of goods "under the order" is one of the competitive advantages. For "hot" goods (60-70% of turnover), the supplier most often creates a warehouse program or the so-called promotional stock.

Some companies open remote warehouses in regions with a large number of dealers. These warehouses serve as points of acceptance and transfer of goods, as well as a place for storing promotional stock. Ways of delivery (shipment) of the goods often determine the one who bears the transport costs. In some cases, dealers themselves determine the method of delivery of products (delivery by the supplier's vehicle, self-collection or through third-party carriers).

5. Availability of deferred payment. Why does the dealer need a delay?

Main reasons:

• lack of working capital for the purchase of the company's products (for example, a dealer's client works on a partial prepayment);
• the dealer orders more goods to maintain inventory, thereby reducing the delivery time of hot goods;
• the dealer invests in the material and technical base, the deferred payment in this case is an opportunity to plan future income and expenses.

Deferred payment, in fact, is a financial service. Banks and other financial institutions lend only at a certain percentage. By providing a deferred payment, the supplier makes it possible to work on his money, while the dealer can earn extra money on a "cheap" loan.

6. Fulfillment of warranty obligations. For the dealer, the timely fulfillment of warranty obligations, handling complaints is a way to “save face” in case the customer discovers defects and malfunctions in the product. A reliable partner is one who fulfills its obligations with high quality and on time.

7. Joint marketing activities. Marketing activities and advertising allow you to attract the attention of potential buyers to the dealer's point of sale. Joint discount programs, promotions, sampling give a "push" to the growth of sales and brand awareness. Most often, the marketing budget for a particular dealer can be formed as a percentage of turnover. The budget for participation in thematic exhibitions and other events, as well as advertising in the media is formed between the dealer and the supplier in a 50/50 ratio.