When we encounter the term “distributor” in the media or advertising, we cannot always correctly understand its meaning. A distributor is a merchant, but how and under what rights he carries out his activities is not clear to everyone. Let's try to figure out who this is, and at the same time how to become a distributor.
Why does a manufacturer need a distributor?
The relationship between the distributor and the manufacturer is built on the natural desire of the exporter in modern economic conditions to expand the sales market for its goods abroad, while reducing its costs to a minimum.
An official distributor - an intermediary - helps him realize these plans. By the way, this term borrowed from English means “distributor”, “one who distributes goods”. The distributor does exactly this: purchasing goods at his own expense from the manufacturer, he distributes them in the regions on his own behalf.
But, by the way, this often has a downside - the manufacturer begins to economically (and in connection with the conclusion - legally) depend on how conscientious, enterprising this agent is and, most importantly, whether he has the ability and desire to secure profitable deals.
How to become a distributor
If a particular company or company decides to acquire the status of a distributor, it must first draw up a corresponding agreement (the so-called “sales agreement”). It can be either exclusive (giving the right to sell the product only by this company) or non-exclusive.
Naturally, by entering into these relationships, a company with the rank of “official distributor” becomes not an ordinary reseller who acts as a wholesaler. She, as a rule, maintains long-term and close ties with the exporter and is engaged in the promotion and organization of sales of his goods in a certain territory of the country, which is assigned to it in advance.
What you need to do to become a distributor
Answering the question of how to become an official distributor, we have already mentioned the need to conclude a sales agreement between the manufacturing company and the selling company. But to do this, you must first send an application to the selected company with an offer of your implementation services.
This appeal, as a rule, indicates the company offering itself for the role of distributor, its mobility, turnover, coverage area, number of clients and capabilities. Considerable attention should be paid to an overview of the market in which work will be carried out, as well as approximate information about the sales volumes of certain goods on it.
The purpose of this appeal is to interest your future partners in the services offered, while showing your own awareness of the possibility of promoting the product and methods of advertising it.
Proper networking, as a rule, ends with business negotiations and the signing of a distribution agreement.
Rights that a distributor has on the sales market
The exporter most often grants the distributor the exclusive right to sell, and he himself voluntarily leaves this market, not only without entering into competition, but also in every possible way assisting in the promotion of a certain product and its advertising.
In addition to the above-mentioned privileges, the exclusive distributor receives from the exporter the right to use the trademark, the opportunity to organize personnel training and after-sales maintenance of the product.
To provide greater clarity in the distributor-manufacturer relationship, the International Chamber of Commerce has issued guidelines for drafting relevant agreements. Among other things, it highlights some aspects of distributors’ activities:
- the manufacturer loses its predominant position in the territory where the distributor operates;
- the relationship between them is concluded for a certain period of time;
- cooperation cannot be episodic;
- The relationship between the manufacturer and the distributor takes on a trusting nature, but the sale of finished products entails actions from the distributor, in particular, this is expressed in abstaining from competition.
Features of the agreement concluded between the manufacturer and the distributor
An exclusive distributor receives from the manufacturer for sale and placement of certain goods agreed upon by contract in a clearly limited territory. He undertakes to purchase these goods only from the exporter with whom he enters into an agreement.
Exclusivity in the contract may concern both the territory in which sales are made and or consumers. If there are no exclusivity conditions, then there may be an unlimited number of distributors in the contract territory.
Features of the legal nature of the distribution agreement
The legal nature of the distribution agreement is organizational in nature. So, on the one hand, it is implemented by the distributor acquiring contractual goods from the exporter, which is confirmed by separate purchase and sale agreements, and on the other hand, by the sale of this product to them in the designated territory, which is also confirmed by the conclusion of separate purchase and sale agreements, but with consumer.
Therefore, as you can see, it is very important, before becoming a distributor of a company, that both parties to the transaction (exporter and distributor) have stable rules of interaction. These are agreed upon as general terms and conditions of the sales process and are all contained in the distribution agreement.
How is a distributor's income determined?
Before becoming a distributor, of course, you should decide on the amount of remuneration (in commercial practice it is called “commission”). It is calculated as the difference between the purchase and sale prices of goods.
And the right to receive commissions, methods for calculating them, the procedure and timing of their payment, as a rule, are determined by agreement of the parties.
Types of distribution activities
Today there are several types of distribution activities:
- General distributor. They are considered an intermediary who organizes regional sales of a company’s products through its own network and on its own.
- Distributor with warehouses. It performs the function of storing goods, concluding contracts for their supply in the future, as well as providing services in sorting and selecting assortment groups of goods.
- A distributor that does not have warehouses, as a rule, participates in transit deliveries.
As you can see, having decided to become a distributor of a company, you should also decide which intermediary is most profitable for your company or company to be.
Can an individual act as a distributor?
Along with companies or firms, individuals can also engage in distribution activities. All they need for this is an understanding of the state of the market for goods or services that the manufacturing company is targeting.
So, for example, cosmetics distributors, having selected a company that is suitable for them, the quality of whose products they trust, having proven their competitiveness to it and having signed an agreement with it, begin to evaluate the market.
First of all, you need to understand which category of the population will be interested in this cosmetics, and then you can find stores, including virtual ones, that are aimed at this segment of the population. Having written out all the advantages of this product, you need to prepare its catalog and offer it to the specified stores, explaining why it will be profitable for them to sell this particular cosmetics.
This advice, as you understand, applies to almost all types of goods.
Food distributor: features of this type of activity
True, when choosing a field of activity, it is worth remembering your capabilities. After all, if no special conditions are required for storing purchased cosmetics or their remains, then, for example, for someone who decides to sell food, they are most often needed.
This refers not only to shelving and storage containers, but also to refrigeration units. And this implies additional costs for their purchase, and then for paying for electricity. After all, a food distributor must take care of the method and place of storage of the goods, otherwise it will lose its appearance, and the intermediary, accordingly, will lose its invested funds.
A few words about the distributor profession
As you have probably already seen, distribution activity is a good option on a variety of scales - both in the form of working for yourself, and as a means of building large distribution networks or a business with huge turnover. Everyone can find something different in it, depending on their goals and available opportunities.
Earning money in this field of activity, regardless of who you are - a distributor of food, cars, hygiene products or computer equipment, depends only on your business qualities, the ability to promote a product on the sales market, prove its advantages and interest the buyer in it.
So, try it, and you will definitely succeed!
How to become a distributor? Of course, every person has heard the word distributor. However, not everyone knows exactly the meaning of this word. It is worth noting that, at its core, a distributor is a large-scale trading company that purchases products from well-known industrial manufacturers in large volumes and at low prices. After this, the trading partner sells the purchased products on the regional market in accordance with the terms of the contract. The operating principle is similar to.
Features of obtaining distributor status
As a rule, large companies appear for two reasons, the first of which is that a large manufacturer begins to develop new markets and invests large sums of money in the development of a distribution network. There is a second option - a large trade supplier can obtain distributor status to create a solid permanent customer base. After studying the features of this activity, you will learn how to become distributors.
This status can be obtained after negotiations have been held with the product manufacturer. As a result of these negotiations, a decision will be made to assign the interested person the status of a sales representative. The main factors that may influence the decision are the occupied market share and the dealer's authority in various areas of the business.
Many businessmen believe that the main value of partnership lies not in material and physical capabilities, but in a serious, established customer base.
Don't know how to become distributors? First steps
First of all, every reputable trading company must have a central office and a warehouse designed to store goods. The office should have a sales department that expands the client base, as well as an accounting department that controls all incoming and outgoing cash flows.
As for the size and volume of warehouse space, they depend on the product that the distributor is selling. For example, if you work with food products, then the area of your warehouse may be small, but the storage conditions for these products are as strict as possible.
Sales representatives' expenses also include advertising and brand promotion. These points are an integral part of the work of any large trading company. Please note that brand promotion is usually carried out together with the manufacturer of the goods. In this case, the partner implements a targeted advertising policy in a specific region, and the manufacturer operates in large-scale interregional markets.
How to become a distributor and attract many clients?
To attract distributors, you can hold advertising exhibitions and invite wholesalers and dealers of various sizes to them. At these exhibitions, you have to draw the customers' attention to certain points. As a less costly and more effective method, this is becoming more and more promising.
First of all, you need to describe the advantages of the products that your company represents. In addition, the emphasis should be on flexible and convenient cooperation schemes between the wholesaler and the distributor himself. For example, if a product sells poorly during the winter season, discounts or deferred payment can be provided for it.
Using comprehensive methods of attracting clients, you can achieve good results.
Thus, it is unlikely that you will succeed in becoming a distributor on the first try. This status is the result of many years of painstaking work. Only an experienced and qualified manager can manage a large company. As for the markup on products that distributors can afford, it is approximately 20 percent.
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There will always be a buyer for a good product, but what if the buyer is domestic, but the product can only be bought from a foreign manufacturer? Not every potential consumer is ready to go to another country for the product they like, so you can start making money on this desire in Russia. But before becoming a distributor of a foreign company in Russia in 2019, you need to make sure there is stable demand.
Distributor or dealer - work in a chain
Having established contacts with a foreign manufacturer, an enterprising person will need to decide in what capacity he will be ready to work with him. There are two options: dealer and distributor. Unusual to Russian-speaking ears, the words translated mean: merchant and distributor. Despite some similarity of concepts, there are differences between them that determine their functional difference.
Difference in Definitions
Even a superficial knowledge of English will allow you to find a translation for foreign concepts that have quickly taken root in our vocabulary since the 90s. And if in the era of the “wild” market no one delved into the details, now the chosen status also determines a set of rights and responsibilities.
Thus, a distributor (general or exclusive) is first of all obliged to organize the distribution of a product or service. This means that a domestic company or individual entrepreneur will be busy forming a network of wholesale or small wholesale distributors, as well as launching an intensive advertising campaign for greater brand recognition.
Contacts with small retail outlets and end consumers are mainly carried out by dealers. It is their responsibilities that include direct direct sales of goods and services.
Difference in rights
If we imagine trade relations in the form of a hierarchical chain, we get a simple sequence: foreign manufacturer - distributor - dealer. Based on the manufacturer’s sales policy, there may be one or several distributors in the country. The number of dealers depends on the intensity of work of the distributor himself. It is clear that commercial success in Russia implies the most developed network of those who work directly with the buyer.
A foreigner can quickly and without hassle open an individual entrepreneur online through the proven service “My Business”. All you have to do is register, enter the necessary data, and the system will give you ready-made documents, which all you have to do is print them out and submit them to the tax office.
Become a supplier: the distributor path
Having chosen a foreign manufacturer whose products, in the opinion of the future seller, will be of interest to the Russian buyer, the main thing is to correctly carry out the presentation work and negotiations. A well-written business plan and forecast data on purchases and sales will help you successfully present your company to foreigners. 
Many foreign brands have their own set of requirements for potential partners. They can cover more than just financial indicators about minimum sales volumes.
Among the requirements for a future distributor may be wishes for location, availability of warehouses and industrial premises, equipment, personnel and retail space. The demographic and economic indicators of the region may also play an important role.
In addition, before becoming a dealer of a foreign company in Russia, it will be necessary to prove to the manufacturer that the company is able to establish and further develop a partner network.
Variants of work schemes
The form of cooperation between the manufacturer and the official distributor may have several options. A foreign company can choose a Russian distributor as the only one with the right to import their goods and sell them on the territory of the Russian Federation. He may be given the broadest and sometimes exclusive rights to develop and expand the sales network. There is a scheme in which different distributors are selected for different groups of goods. Division by region is also possible.
Under an agreement with foreign businessmen, the distributor may be obliged to independently organize a network of representative offices and service centers and organize direct sales.
However, most often there are contracts under which the distributor can delegate authority to work with clients to smaller dealers, while he himself will be involved in promoting products and expanding the partner network. With this scheme of work, the distributor will be required not only to intensively search for new markets, but also to provide information support to dealers, organize seminars and representative events.
Documentation of cooperation
After conducting preliminary negotiations and receiving positive reviews of the cooperation proposal, it is time to discuss the draft agreement. According to established practice, a contract with a foreign company stipulates in detail many even small details. Most often it is compiled in two languages (Russian and English).
The main pitfall of such agreements can be considered that in any disputes the text in a foreign language will be taken as the basis. On top of that, lawyers often add a clause on foreign jurisdiction of cases under this document.
A positive aspect of such strictness can be considered a detailed description of all procedures and requirements, a list of information about information support and an appendix to the contract of a list of responsible contact persons.
Work on the basis of a dealer agreement
In addition to obtaining distributor status, a domestic entrepreneur can try to enter into an agreement with a foreign legal entity to work as a dealer. Such cooperation is suitable for those who are ready to work independently in the field of direct sales of imported products, without advertising support and service departments.
This is acceptable in cases where the manufacturer itself already has its own branch in the Russian Federation and is interested in developing a partner network. Most often, a dealership agreement involves work on an advance payment basis. If we are talking about the possibility of paying for a product after its sale and allows the return of illicit goods, then the manufacturer in most cases reserves the right to set maximum prices and return periods.
For an optimal approach to making an informed decision on the form of cooperation, it would be useful to familiarize yourself with information about.
How much working capital will such a business require?
The answer to the question about the costs of promoting products, purchasing several starting and presentation batches of goods, and developing a sales network should be announced at the stage of presenting a business plan and conducting negotiations. A scrupulous approach to preliminary calculation of financial investments is not only useful for ensuring a positive response from a foreign partner, but is also advisable for the potential distributor itself.
The amount of capital investment largely depends on the product being sold, and on the expected distribution area and the ramifications of the dealer network. It is clear that high-tech gadgets or unique highly specialized equipment cannot be cheap, but the segment of a non-premium clothing brand will be more affordable in terms of material costs and capital turnover rate.
Ways to do business with foreigners without investment
If the preliminary calculation of capital investments before becoming a representative of a foreign company does not correspond to the available savings, draft contracts can be proposed with the distribution of the financial burden between the parties. 
To reduce the size of the initial investment, you can try to negotiate a free supply of at least a trial batch of products. Despite the riskiness of such a transaction, the contract can provide for some means of insurance (for example, financial guarantees from a bank or insurance). In addition, this option may become the only opportunity for foreigners to penetrate new markets.
Another way to promote a product without buying it is through an agency agreement. In this case, ownership of the goods does not pass to the distributor; he will receive only the commission specified in the contract.
Typically, the agent's profit is less, but in conditions of a lack of working capital, this option seems optimal.
Pros and cons of working on behalf of a foreign partner
An undeniable advantage of working under the terms of an official representative office is that the distributor is guaranteed support from the manufacturer. In the case of cooperation with a global brand, establishing sales is noticeably easier.
Constraint in decision making may be considered a disadvantage. In the overwhelming majority of cases, the manufacturer rather strictly controls the fulfillment of the image requirements of the contract, insists on increasing the minimum sales volumes, sometimes it comes to applying a system of fines or reducing the amount of remuneration based on the results of the audit sent.
Where to look for foreign suppliers
If an entrepreneur has a desire to expand his business or start one with foreigners, but the choice of a supplier has not yet been made, then you can use several selection methods:
- be guided by your own taste when selecting a product and find contacts of the selected company on the Internet;
- conduct a social survey at least among friends and customers;
- use the services of sites where you can find offers for dealerships of foreign companies from all over the world:
- all.biz – international portal of wholesale and retail trade,
- eurolots.com – European site for searching suppliers,
- aliexpress.com is a site offering products from Chinese companies.
Foreign counterparty - trust, but verify
The possibility of stumbling upon an unscrupulous partner outside one’s native country, unfortunately, is not reduced to zero simply by the very fact of foreign origin. To preserve their own nervous system, a domestic businessman should conduct a check in advance, albeit at the level of general capabilities:
- Check the availability of a serious website and your own domain name.
- Evaluate the approach to negotiations and the draft agreement.
- Take advantage of the capabilities of the World Wide Web and a number of special sites:
- www.ved.gov.ru – government portal of foreign economic information,
- creditreform.com is a foreign site offering services for checking potential partners, has representative offices in many countries around the world,
- europages.com.ru – “yellow pages” of European manufacturing and trading companies.
With the development of the Internet and remote methods of transmitting information, it has become easier for a modern businessman to develop his business. Freedom of communication helps entrepreneurs expand the list of suppliers, and not only brings consumers closer to global brands, but also gives them the opportunity to try lesser-known brands.
How a foreign company can open a representative office or create a branch in Russia: Video
First, you should understand why you need to distribute a foreign brand. Everyone thinks it's easy and simple. They rely on the success of Unilever and Procter & Gamble, not realizing that distribution is a big responsibility.
You need to realize that you will make money in distribution only in the long term, when you learn to negotiate with suppliers and form a customer base. You need to devote all your time to this. This cannot be regarded as an additional business.
Try the product
When you decide on the products you want to bring to the Russian Federation, it makes sense to order testers. Better yet, don’t skimp and spend 100-200 thousand rubles: get a visa to the country where the product is produced and go to the exhibition. Consider different brands, try it for yourself, talk to company representatives. We fly to such exhibitions every year.
Ask the right questions
When choosing a supplier company, I always pay attention to the quality of packaging. People are greeted by their clothes, so I always ask myself two test questions: “Do I want to use this myself?” Second: “Won’t I be ashamed to give this to a loved one?” If both tests are passed successfully, then the product can be considered. But it is important to remember that good packaging does not always mean good quality.
Next, it’s worth talking to the sellers, because when collaborating, you will communicate with them or with managers. If they are friendly and open, that's a plus. You can only evaluate the quality of products through personal examination; I test men’s cosmetics myself.
I bring product testers to Russia and consult with specialists. In our case, I distribute cosmetics testers to barbers with whom we cooperate. They all have a great understanding of the product and trends, and give good advice.
Select brand
Sometimes it is better to choose a product that is still unknown in Russia. It will be easier to enter the market with him. Customers are tired of tired and bored brands, and people are looking for analogues. At the same time, a brand with a big name most likely already has distributors in the Russian Federation, and if not, then its conditions will not be the most optimal.
How much to invest?
To become a distributor, for example, of an English brand, you will have to invest at least 2-3 thousand pounds (170-270 thousand rubles). This will be enough to purchase the first batch of goods. This way you can sell it quickly and test the market. Next, you need to understand whether the product is in demand and continue the business.
Proper shopping
You have two options for the development of events. The first is to try to invest about 4-5 million rubles in further purchases, depending on the scope of sales and the cost of a unit of production. You buy, bring and resell.
The second option is to negotiate with the supplier for deferment or implementation. It is possible to reach an agreement with a foreign supplier, even if the company does not yet have a recognizable name. But this can only be done with a personal visit to the supplier’s company. If you speak good English, have diplomatic skills and are close to European culture, this will not be difficult for you.
A lot depends on you here. It depends on how you understand the market, the product, how confident you are in yourself and your capabilities. All this is important when you negotiate with a supplier in person. I know cases where almost identical companies agreed on completely different terms with the supplier for an exclusive product.
One company received the product without paying anything and received a line of credit for the product for £30 thousand (2.7 million rubles), and the second itself paid the manufacturer 9-10 million rubles to get the exclusive.
How to negotiate profitably
A company that has its own actual production will offer you much more favorable conditions for deferments, sales and payments. If a company does not produce goods itself, but orders from other factories, then it most likely will not agree to such conditions.
At the same time, listen carefully to the supplier. If they tell you that exporting is not their main task now, but that the main goal is the development of the local market, you should not have any illusions and fight against a closed door. Look for another supplier.
Clear goods through customs
The most difficult thing is to bring the goods to Russia. Here it is better to use the terms of a broker (a specialist in clearing cargo and goods at customs). He himself will check the documents, control the nomenclatures, and draw up declarations.
At the same time, when clearing products through customs, you are obliged to immediately pay customs duty on all goods and VAT on all imported products. You also pay for delivery and storage services.
Many companies are trying to save on customs and taxes, trying to somehow circumvent these issues. My recommendation - don't! Under no circumstances should you play with the state and taxes. Better form the right price, optimize your business processes and management structure. But you can't escape taxes. The legislative “correctness” of a business is its foundation on which you can calmly build your business further.
In general, there is no need to be afraid of difficulties. You shouldn't go into business if you like to complain. But if you are a stupid optimist, everything will work out.
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, together 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 representative of a company 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.
Distributor of a foreign company in Russia: how to start a business not from scratch
The more efficiently you work, the more you earn;
- There are no competitors within the company;
- Support from a strong partner;
- Free training;
- Quick start.
- 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.
How to become a manufacturer distributor
If you are given this opportunity, don't miss your chance!
- Conclude an agreement with a foreign company, according to which you will be given a certain time to sell the products, after which only you will have to contribute money.
- Enter into an agreement with a foreign manufacturer and collect orders from suppliers and dealers, that is, work on full prepayment.
A manufacturer can have any number of distributors, just as a distributor can have an unlimited number of suppliers. Also, you will need to correctly compose an email in which you need to indicate your work experience, the advantages of cooperation with you, the market situation in your country, opportunities for selling products in your region, etc.
How to become a distributor of a foreign company?
First of all, it will be necessary to study the specifics and basic conditions of work of a foreign company with distributors, as well as familiarize them with the peculiarities of Russian conditions. In this case, you will also need to make several foreign business trips and conduct presentations in a foreign language.
Important
Such negotiations and approvals require significant time and additional effort - you will have to independently study a lot of additional information, be prepared to explain a lot and convince partners of the economic profitability of the project, and negotiations will have to be conducted at the international level and according to international business standards. Here it is very important to competently prepare and conduct negotiations and presentations to foreign potential partners.
It is very important to study all the nuances of cooperation, prepare a competent business plan and presentation, and present a forecast plan for procurement and sales.
How to become a distributor: 7 detailed steps
Therefore, the responsibilities of the distributor include promoting the product on the market, expanding the target market and constantly searching for buyers. What needs to be done to become a distributor Those who are interested in this profession are primarily interested in how to become a distributor of a particular company.
To do this, it is necessary to conclude a special distribution agreement and receive an official certificate, which is certified by the general director of the manufacturing company. After this, you can begin to distribute the product, which the supplier provides to the distributor at the price that they agree on in advance.
However, the above is relevant for cooperation with large manufacturers, and if we are talking about the product of a company engaged in small business, then, most likely, you will first have to cooperate on a dealer basis, that is, completely purchasing the product from it.
How to become a successful distributor in your region
Based on the specifics of the product and the current situation on the market, a foreign manufacturer may have one distributor or several; this determines the main terms of the contract between the manufacturer and the distributor. The current market situation and the specifics of the goods also determine the conditions for organizing the dealer network and the intensity of the distributor’s work.
Some foreign manufacturers already have some kind of representative office or simply an office in the importing country, then it is quite simple to establish interaction with the manufacturer-supplier, since company representatives are already well acquainted with the peculiarities of Russian business and it will be easier and faster for you to agree on everything with them . If a foreign company does not have any representatives in our country, then establishing contacts will require much more time and good command of a foreign language.
How to become a distributor?
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;
- Displays the product 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
How to become a distributor
Attention
You should also take into account all possible risks due to the unstable economic situation in the country, fluctuations in the exchange rate, etc. A foreign manufacturer will most likely give preference to a company that has its own warehouse, transport and a well-functioning work scheme.
In addition, you will periodically need to travel abroad and deliver goods from there, which also requires certain material costs. If the desire is still too great, try the following options:
- It is very rare, but it still happens that the manufacturer is ready to send free test samples of the product. This type of work is more typical for small young enterprises.
How to become an official representative of a company in your city?
It is also important to note that such contracts provide for the supply of goods on an advance payment basis. There may also be some additional conditions regarding the timing of the return of defective or non-marketable products and other restrictions.
In some cases, such a work scheme may not be very acceptable. In any case, whatever work scheme you choose for yourself, it is necessary to study in advance, negotiate and clearly state in the contract all the terms of the partnership.
How much money do you need to invest and is it possible to do without capital investments? In general, organizing any business requires at least minimal capital investments. If you do not have the opportunity or desire to make the necessary start-up expenses, then in this case, then offer your foreign partner to distribute the upcoming financial expenses between the parties or postpone them over time.
You need to realize that you will make money in distribution only in the long term, when you learn to negotiate with suppliers and form a customer base. You need to devote all your time to this. This cannot be regarded as an additional business. Try the product When you decide on the products you want to bring to the Russian Federation, it makes sense to order testers. Better yet, don’t skimp and spend 100-200 thousand rubles: get a visa to the country where the product is produced and go to the exhibition.
Consider different brands, try it for yourself, talk to company representatives. We fly to such exhibitions every year. Ask the right questions When choosing a supplier company, I always pay attention to the quality of the packaging.
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