What do you need to become a representative? Dealer activity: features of earnings and possible risks. Working conditions as a dealer

From time to time I ask myself the question: what would I do if I had to start all over again? And I always answer unequivocally: I would become a regional representative of one or more companies. In my opinion this is The best way start your own business, acquire the necessary skills and abilities at the expense of the parent organization and accumulate and, most importantly, gain trust from your partners.

The present moment is the most favorable for work in this area; many advertising magazines and newspapers are filled with advertisements like “we are looking for a regional representative,” and large companies and enterprises dream of finding an intelligent representative in the regions, so this will primarily be of interest to people living in large but provincial cities. Although, depending on the type of product and the parent organization, this idea can be used both for the capital and for small cities.

The principle is that the more people need this product, the more sales can be made even in a small town (for example, medicine and food are needed everywhere, but airplanes are unlikely to be a big success).

A little theory. What is the essence of agency work (a regional representative, in other words, is a commercial agent of a company, one or more). An agent, on behalf of and on behalf of the company that hired him, carries out sales of goods assigned to him, in the territory assigned to him, for a commission.

What options exist for organizing work and, accordingly, an agency agreement:

Work on a commission basis plus a fixed salary. It is much more difficult to receive such an offer than to work simply for a commission. in this case, he wants to be sure that the chosen representative is really capable of solving the problems facing him. But this is an ideal option for starting your own business; you can learn to work with a minimum but guaranteed salary.

Work on commission only. The advantage is that you have a more free mode of work; you are not obliged to report on each of your steps to the parent organization, which usually puts forward one condition - to ensure a certain volume of sales in the assigned territory. As a rule, it is much easier to conclude an agreement on such terms; the commission rate, and therefore the opportunity to earn money, is higher. The disadvantage is that there is more risk, it is not known how sales will go, you can work in vain. Recommendation: conclude several agency agreements with different companies, which will reduce the risk, one will not be sold, another will be sold.

Agent with warehouse. This agreement is concluded, as a rule, with an already well-established regional representative. Typically, sales are conducted on behalf of the seller, and, accordingly, the goods are delivered from the seller’s warehouse, which slightly increases the delivery time. True, for wholesale deliveries and when selling expensive equipment, this is not of great importance. Having a warehouse allows you to sell here and now, which can be beneficial for some types of goods sold both wholesale and retail (for example, power tools).

One of the main conditions of the agreement that the agent must put forward to his parent company is partial or complete exclusivity. The fact is that when you start promoting a product, a situation often arises when the company to which you are offering it tries to contact the parent company over your head, often under a different name, for example, hoping to get a lower price. In addition, by carrying out your work, you thereby advertise the product you are offering, information about which may become known to other potential consumers, but it is still your work, thanks to your efforts, the product is promoted to the market.

What is full and partial exclusive:

full exclusive provides that you receive a commission on all sales in your assigned territory, regardless of whether they are made with or without your direct participation,

partial exclusive assumes that you receive a commission on all sales in your assigned territory, excluding sales on... or through...

Partial exclusivity usually assumes that the company already has one or more dealers in your region.

It is best to deal with companies with foreign participation. Our enterprises are not so accustomed to agency work, so we can expect them to partially or completely fail to fulfill their obligations. Foreigners are well familiar with this form of sales organization, and in some countries, such as Italy, it is very widespread.

It is best to start your work with companies that provide some kind of initial training, both commercial and related to the specifics of the product, otherwise you may develop a persistent dislike for agency work.

Basic steps:

Choose a more or less familiar sector of activity, that is, if you are a mechanic, or were previously involved in industrial equipment due to the nature of your activity, then you are unlikely to engage in selling flowers (unless, of course, this is your hobby, which you understand better than its main activity).

Find companies operating in this sector and offer them your services. The source of information can be the Internet, reference books, industry directories.

Decide on the range of goods that you intend to sell, for example, you found a company that sells lifts for car service, in this case it makes sense to also offer (that is, find sellers or manufacturers) other car service equipment: compressors, tire fitting and balancing stands, compressors, and so on.

Conclude agreements with companies, these can be either written or oral agreements. Any company is interested in good regional representative, so they are unlikely to scam you, and if they really want to, then written agreements will not help, there are a lot of workarounds, for example, selling on behalf of another legal entity.

Studying the product, both from a technical and commercial (advantages of the product) point of view.

Getting started, making phone calls, scheduling meetings, conducting negotiations and presentations.

What you need to get started:

telephone, computer with printer and fax modem - this is required,

a small office, it is unlikely to cost more than $50 a month, and a secretary who will answer phone calls in your absence - this is desirable, although you can do without it at first with the appropriate ingenuity. That is, the costs to get started are minimal.

A company representative is a specialist who promotes the products of a specific manufacturer in a certain region. Any sane person who wants to achieve financial independence dreams of taking such a vacancy, since it is quite profitable and very interesting work. We will tell you how to become a company representative in your city in this publication.

Where to begin?

In order to become a representative of a large company you will need:

Experience in a specific field;
Competent business plan;
Personal interest in products;
Availability of a team of professionals;
Necessary technical equipment;
Willingness to invest funds.

In addition, you need to collect a package of documents:

Charter;
Constituent documents;
Registration certificate;
A document confirming that you are the head of the organization;
Lease agreement for office space;
Bank account.

Dealer without investment

Many citizens who want to try their hand at this field often ask the question, how to become an official representative of a company without investment? There are several ways:

Trade on order

You've probably seen the “made to order” mark next to some product items in the price lists of online stores. This means that the buyer must deposit money for the goods into the seller’s account, after which, after a certain time, he will receive his purchase.

If you look at it through the eyes of a businessman, the situation looks like this:

The entrepreneur signs an agreement with the supplier for the purchase of goods at dealer prices;
Exhibits goods for sale at its outlet, or rather, includes it in the price list and various promotional materials;
The buyer pays for the purchase, after which you buy the goods from the supplier with the money received and transfer it to the buyer.

If you want to become a representative of a company in the region without significant financial investments, choose a market segment that includes goods whose cost ranges from 5-20 thousand rubles. Consumers prefer to buy inexpensive everyday goods in nearby stores, even if their prices are slightly overpriced. If you choose too expensive products, you will have to rent an elite office or store. For example, for car sales, large areas are rented for showrooms.

Goods for sale

If you have firmly decided that you want to become a representative of companies, but do not have the funds to realize your plans, you can try to enter into an agreement with the manufacturer in order to receive goods from them for sale. Many large companies are accommodating to budding entrepreneurs and willingly agree to such cooperation.

The most important thing is to sell the products on time. If you do not have time to sell all the goods within a certain period of time, you will have to pay money for it, and 1-2% more than its original cost. In some cases, suppliers take back unsold goods. Return conditions must be specified in the contract.

Free testing

The manufacturer sends samples of its products to the sales representative so that he can try them out. If you find such a company that agrees to provide you with their products for free to test, consider yourself very lucky, because many suppliers refuse to work under such conditions, so the chance to test products for free is a great success for a newbie.

Official representative

This is the most profitable option, since you get a guarantee that the products you sell will be of interest to the end consumer. The supplier provides you with full information support, as well as assistance in organization and development trading enterprise. Advertising specialists promote products at a professional level, so you don’t have to waste time and energy on it.

Work in a foreign company

Many domestic enterprises are not adapted to agency work. In addition, some of them may not fulfill their obligations. In this regard, newcomers are often interested in how to become an official representative of a foreign company? Abroad, this form of sales has long become commonplace and has become widespread. If you have no work experience, look for a company that provides training.

Let's take a closer look at what steps you need to take to become a representative of a foreign company:

Choose a line of work that you are familiar with. For example, a mechanic may sell industrial equipment because he has specific knowledge in that sector;
Find a suitable company and offer your services to it. The necessary information can be obtained on the Internet or from industry directories;
Decide on the product range. For example, along with lifts for car repairs, you can offer consumers balancing stands, compressors and other equipment for car services;
Enter into an oral or written agreement with the company;
Study the product carefully to determine its commercial and technical advantages.

Advantages and disadvantages

Before becoming a company representative in your city, you need to familiarize yourself with all the advantages and disadvantages of this profession.

Pros:

There is no upper limit on income levels. The more efficiently you work, the more you earn;
There are no competitors within the company;
Support from a strong partner;
Free education;
Fast start.

Minuses:

Lack of permanent salary;
Large risks of losing start-up capital.

Where can I find a company?

Interested in how to become a sales representative for a company? Many manufacturers post information about available vacancies on their own websites on the Internet. You can also send your resume to different companies. Perhaps someone will respond and offer you cooperation.

Try to collect as much information as possible about the activities of different companies. This will help you choose the right supplier, on whom the success of your business depends 90%. You should not give preference to any supplier based on low prices. If you are committed to serious work, you need to pay special attention to the company's reputation. It is also very important that the products you will sell are in demand in your region.

How to choose a company?

Before making a final decision which company or manufacturer is more profitable for you to cooperate with, you must first find out.

Construction Materials

Nowadays trade building materials brings good profit, therefore, many successful entrepreneurs cooperate with enterprises that produce such products.

Before that, decide on the scope of work. You can open a small outlet or a large supermarket. It all depends on your financial capabilities. According to experts, at the stage of formation, an average company will bring much more profit than a large retail chain. You should not strive to conclude a cooperation agreement with a large manufacturer. At first, it is better to work with a small company. In this case, you will earn good money and gain the necessary experience.

Furniture

This is the simplest and most easily implemented idea. Almost all furniture that can be purchased on the market is sold through dealers. An exception may be foreign-made products or large retail chains.

If you decide to start a business and don’t know, first of all you need to find a furniture factory and agree on cooperation with it. The manufacturer bears full responsibility for the complete set of furniture and its quality. If the buyer discovers any defect, the furniture factory is obliged to replace the product.

Baby food

Before that, many aspiring entrepreneurs get jobs as sales representatives. This allows them to gain the necessary experience and understand the range offered by modern baby food manufacturers.

This approach is completely justified, since products intended for children must be of high quality. If you open your own store and purchase low-quality goods, the company will quickly go bankrupt. Working as a sales representative allows you to learn from the inside all the features of trading such products, and the experience gained will guarantee the success of your business.

Video: About the profession of sales representative

Confectionery

It is most profitable to sell food products during a crisis. Despite the fact that almost all citizens are starting to save, they continue to buy food, and especially sweets. Before that, draw up a competent business plan and find reliable suppliers who sell quality products at affordable prices. The most profitable option is direct supply of goods from the manufacturer. In this case, you will receive the freshest products at low prices.

To reduce the payback period of the enterprise, it can be installed in educational institutions or in shopping centers some . In such walk-through places, chocolates, cookies in small bags, lollipops, etc. are excellently sold. Since this piece goods sells quickly and in decent volumes, vending machines will bring in good income.

As you know, a dealer is a representative of a company engaged in the promotion/trading of products of a specific manufacturing company in a certain territory. Here we will look at an article about how to become a dealer, what you need for this.

The advantage of this status is special cooperation programs, as well as support and development assistance from the manufacturing company. In addition, usually the manufacturer himself, and not the dealer, is involved in advertising the product, which, in turn, will help you save significantly on its promotion.

Another important advantage is that specialists from the development and training, sales, after-sales service, marketing and IT departments will help you set up all the processes that are simply necessary for the successful launch of a dealer and start working in accordance with manufacturer standards. This is not the case in all companies, but in all large ones this is the case.

How to become a dealer

So, let's look at information on how to become a dealer - an official representative of any organization or manufacturer.

Company requirements

Almost any company will require you to:

Stable financial position;
Experience in your chosen field;
Dealer business plan;
Interest in the products of this company;
Having a team of professionals on your staff;
Availability of necessary technical equipment;
Ready for investment and, if required, construction.

And, of course, the following documents:

Charter of the future dealer (if you are a legal entity);
Foundation agreement (if any);
Certificate of state registration;
Certificate of tax registration;
A document certifying the authority of the head of the organization;
A lease/sublease agreement for non-residential premises or a certificate of ownership of non-residential premises where it is planned to organize a sales location for the future dealer (separately for each such premises);
Director's passport details;
An agreement with a subdealer, if any (if the declared place of sale belongs to a subdealer);
Bank details.

Priority regions

It often happens that in some regions of the country the dealer network is already sufficiently developed, and additional opening of representative companies in them simply does not make sense, although, of course, it is possible. At the same time, there are regions in which there are very few dealers, and therefore very often manufacturing companies publish information about priority regions for opening partners. For example, at the time of publication of this article, BMW prioritized the following regions for dealers:

Belgorod region;
Vologda Region;
Kaluga region;
Udmurt region;
Chuvash Republic.

Strictly speaking, there is nothing to be surprised about here, because why open a dealer of this brand, for example, somewhere in Moscow, if there are already plenty of them there, if at this time there are regions where there are almost none of them. Here, by the way, it would be nice for some readers - future dealers - to think about moving, even if not permanently. After all, this is directly related to the success of your business – its payback, profit. Almost all companies have such priority regions.

Tenders or what companies take into account when choosing a dealer

If we take the BMW company again as an example, then in order to become a dealer, you will most likely also have to participate in a tender, because there may be several applicants. When choosing, preference will be given to the applicant who best meets the company’s requirements (see paragraph “What is needed?”).

How much money is needed?

If you want to become a car dealer, then the costs will range from 20-30 million rubles, depending on the make of the car and real estate prices in your region. In all other cases, the numbers are much smaller, and sometimes they are not required at all.

How to become a dealer?

Contrary to popular belief, not only “business giants” can ask this question.

Many newcomers to the field of entrepreneurship would not refuse to have stable ground “under their feet” in the form of an experienced and reliable company, and to develop thanks to such support.

It is important to understand an essential detail: the dealer does not simply resell the goods of the employing company.

Its goal is to thoughtfully and efficiently present the products of the “parent” company, properly prepare the client base for the perception of the newly arrived product, and take care of the reputation and promotion of the brand.

Who is a dealer: detailed explanation

A dealer is an employee, often of huge corporations. The purpose of its work is to expand the sales market for products in new regional centers.

An uninformed reader may compare the work of a dealer with the activities of a speculative business. However, this opinion absolutely does not correspond to reality.

The dealer plays the role of an independent entrepreneur in the market segment entrusted to him: he purchases products from only one manufacturer at wholesale prices, and then sells them without changing the brand.

At the same time, be sure to take into account all the subtleties of the marketing activities of the parent corporation.

The work of a dealer has some parallels with politics.

The leadership of a particular region can make independent decisions within their region.

However, regardless of the views and desires of local politicians, decisions on global issues necessarily coincide with national ones.

Likewise, the dealer chooses his own ways of doing business, but his marketing policy is necessarily subordinate to the “parent” entrepreneurial person

In recent years, the number of dealers in Russia has decreased.

First of all, this is due to the increase in the dollar exchange rate. Currency fluctuations are steadily leading to an increase in purchase prices for imported products.

To remain a successful player in the market or open your own dealership, at the current moment of economic instability it is important to have certain qualities.

What qualities should an applicant for the role of a dealer have?

When submitting your resume to the human resources department of a potential job for a dealer position, you need to understand the key question: what do employers expect from applicants?

List of mandatory requirements for dealers:

Experience in entrepreneurial activity.

Hiring a newbie is too risky.

Moreover, if we are talking about reputable companies that require guarantees and the proper level of work performance from the very first days.

Communication skills and high level of activity.

A dealer is a very energy-intensive profession.

To perform his duties efficiently, the applicant must demonstrate the abilities of a “great speaker” in the process of negotiations with partners.

Also, the profession does not provide a clear work schedule.

Therefore, you must be ready to perform your duties at any time of the day or night.

Stress resistance.

One of the decisive factors in almost any job.

It is not for nothing that applicants most often indicate this quality in their resumes in the “about themselves” column.

The work of a dealer will require even greater tolerance and self-control, because it is associated with constant emotional stress.

Special requirements related to the distinctive features of the product being sold.

At the same time, any peculiarities of doing business in the region where the future dealer operates are taken into account.

What could become such requirements?

The presence of an appropriate material base for placing goods, preparation of documentation for opening an LLC, decisions with sales points - all this can be taken into account by the employer.

Interest in potential employment.

This point seems self-evident.

However, it is just as important as the other factors listed above.

Enthusiasm sometimes plays a decisive role in solving difficult work-related situations.

If you think you meet all of these points, be happy for yourself!

You have every chance to become a successful dealer and develop both your business and promote your employer’s products.

How to choose the right business area?

In order to become a dealer, you must choose an employer company.

To do this, first of all, you need to determine the market segment that you want to represent.

When choosing a business area, you need to start from personal experience and priority areas for your region.

There is another option: if you want to work with a specific company, you need to establish what its managers consider when expanding the geolocation of their business.

Let's look at the main potential goals:

Goals of the Corporation	What is required from the dealer?
The new representative office should be located in a region in which the company’s products have not previously been represented	Analysis of the regional sales market, competitors, demand for products sold. The dealer is obliged to take into account, first of all, the interests of the employer. If necessary, it is possible to move to another region, where organizing a business will lead to greater success.
Implement your marketing policy based on the dealership center	The initial task of the dealer is to present the product in accordance with the initial marketing plan. The highest task is to adapt the marketing plan to the client base.
High sales	To achieve such a complex goal, it is necessary to carry out a number of activities. The dealer must ensure uninterrupted supply of goods to properly organized own points of sale. Distribution of products by partner networks will also have a positive effect on sales volume.
Cooperation on an ongoing basis	It is important for the employer to understand that you will not leave him the moment you manage to establish the business at the proper level. Successful dealership activities are based on long-term cooperation and constant support.

Taking into account the features and specificity of the goals of the “parent” organizations, you should be thoughtful about the choice of the business area and company you represent.

Only a clear understanding of your goals and the experience to implement them will make your work as a dealer a success, not a failure.

The third option for determining your “dealer path” is to analyze your own capabilities.

For example, a legal entity that has connections in the desired sales market, points of sale, and authority in the market can apply for opening a dealership of a world-class company.

If you don’t have such a solid “starter kit”, consider a more modest employer that offers support in the initial stages of business development.

How to become a dealer: 3 steps to the goal

STEP 1: Find an employing company

The first step to becoming a dealer is finding an employer.

In this process, it is worth starting from your location; it is also worth taking into account the regional characteristics of doing business.

Instructions for finding an employer:

Decide on your business area.

Use one of the three options discussed in the previous section.

Analyze the competition.

Once the industry has been determined, analyze the market in your region for the presence of large representations of other top companies from the chosen line of business.

For example, if you want to represent the automotive business sector, analyze the automobile market of your city (federal region).

Let’s assume that the selected region is “deprived of attention” by the automobile brand “Audi”. So a potential employer has been identified!

Contact the company.

After determining the organization whose interests you intend to represent, you need to contact the personnel department.

In practice, this is done as follows: you find contacts of the nearest representative offices of the organization in your country, contact them, and clarify the details of cooperation.

The second stage is contacting directly the main office + providing project documentation for.

The final stage.

If the employing company shows interest in you, representatives of the main (management) office will ask you to attend a meeting of responsible employees.

The main task of the potential dealer is to confidently present his business plan at this meeting.

After analyzing the possible expansion of business in your region, a final decision will be made.

At the initial stage of interaction, the potential dealer, to a large extent, demonstrates the skills of a marketer (effectively presenting his program for the development of the “parent” business in the region).

The second stage involves real actions to implement plans.

STEP 2: Registering a business

At its core, dealership activity is entrepreneurship.

It is very simple to explain - the dealer organizes his own separate enterprise through which he operates.

That is, a dealer is an employee who organizes a “work office” for himself and sets the rules for internal work in it.

The “paper” component of the process is .

Another form (for example, individual entrepreneur) is unacceptable.

Only a legal entity may be allowed to perform the functions of a dealer.

The dealer receives the status of a legal entity by organizing his own enterprise.

In its focus, it must correspond to the company represented. To do this, of course, the dealer must coordinate each step with management.

This is the only way the employer will be aware of the process of registering a representative business and will be able to control it.

To regulate the process, a cooperation agreement is concluded, which includes:

approval of product supply routes;
implementation plan + deadlines;
product promotion plan;
volumes of product purchases;
basic description of the cooperation scheme.

Example of a dealer agreement:

Registration of an LLC is carried out in three stages:

The first stage: organizing the composition of the founders and accepting the charter agreement + opening a current account in the bank.
The second stage: submitting an application with all the necessary amendments to the Federal Tax Service, which will register the organization for tax purposes in the Unified State Register of Legal Entities (register of legal entities).

Third stage: practical implementation.

This includes renting space, hiring employees, organizing the work process according to the employer’s requirements.

After concluding contracts and registering a legal entity, the dealer can begin selling goods on the market of the Russian Federation.

STEP 3: Sale of goods by a dealer

In providing quality promotion product, the dealer can rely on the supplier.

Order of conduct marketing promotions, often described in the contract.

It is beneficial for every employer to help the dealer get comfortable with promoting products and properly organize the sales process.

At the first stages of supply and sales, the dealer can be assisted by a consultant who has more experience in relevant activities.

The dealer’s task, depending on the goals of the representative activity, may be:

In working on the product distribution scheme across retail chains, i.e. direct participation of the dealer in negotiations with market representatives.
In sales of goods through our own points of sale.
In combined activities: sales of goods through own networks+ organizing agreements with partners.

Choosing one of these interaction patterns is a key factor in determining your future responsibilities as a dealer.

Some more information about who a dealer is and how to become one in the video:

A dealer is a unique profession, a type of entrepreneurial activity that requires the “employee” to be fully dedicated and interested in his work.

Considering this as a springboard for making a smooth transition to independent entrepreneurship is not entirely the right decision.

Cooperation with a supplier as a dealer involves impeccable obedience to the statutory policies of the parent corporation, without any opportunity to realize one’s ambitions in full.

The path to success as a dealer is to be willing to represent someone else's product with the same care and dedication that you would use to produce your own.

Moreover, the dealer is an important person in any large corporation.

You will become part of a large team, feel support “behind your back,” but will also receive high standards for the quality of your work.

If you have no questions left, how to become a leader, but only more determination has increased, start acting right now!

Thanks to the support of his “big brother,” even a novice entrepreneur is able to conquer heights that seem unattainable at first glance.

Useful article? Don't miss new ones!
Enter your email and receive new articles by email

Categories

Editor's Choice