What do you mean by dealer?

Dealers, as the name implies, buy goods from enterprises with money. They buy goods not for their own use, but for resale. For them, selling by hand pays attention to the price difference, not the actual price. Enterprises do not sell on credit, but collect money. This business refers to businessmen, that is, institutions. Therefore, "dealers" are generally enterprises, which refer to commercial units that take money from enterprises to purchase goods.

As the traditional backbone channel force in China market, distributors are being tested by the wave of channel flattening and new channel forces. Under great pressure, distributors passively or actively adjusted their business development strategies:

First, some dealers began to OEM manufacturers and even invest in factories to produce their own brand products in order to maximize the benefits of channel resources;

Second, some dealers began to enter the retail field and extend to the downstream of the channel to stabilize and consolidate the market position;

The third is to maximize the acquisition of superior product resources, share operating costs and risks with products, and pursue the category scale of enterprise management. Unfortunately, more dealers are becoming vassals of manufacturers and are completely trapped by manufacturers. What's more, under the double "squeeze" of terminal retailers and manufacturers, there are many difficulties. What is even more frightening is that the disadvantaged groups among dealers are constantly being eliminated.

Relationship among dealers, agents and distributors

1, the agent can be a single brand or multiple brands; Dealers must represent many brands, such as Shiping and Longlin. Distributor is a general term, including agents, distributors and simple traders (not from the original factory but from other channels).

2. Agents are distributors and dealers, but distributors and dealers are not necessarily agents. Dealers are no different from dealers.

3. Distribution is a concept of sales model. Dealers are transit stations, and production enterprises entrust products to transit stations for sales. The agent is authorized by the production enterprise to sell at the terminal in a certain area. Distributors are similar to traders and trade freely.

4. Dealers broadly include agents and dealers; Whether the existence of agents and distributors is authorized. Of course, there are many kinds of agents.

5. Mainly from product ownership: the distributor owns the ownership of the product; Generally speaking, agents have no ownership and only charge commissions. Dealers generally only do channels, not terminals.

6. The distributor is authorized by the original factory to sell the whole line of products and handle the business on behalf of the manufacturer. Traders who can get goods at the original factory are not authorized by the original factory, and the original factory will not give back to the agents to sell some products. Some are like the original factory's agents who will give back, and some are also called dealers abroad. The supporter of the agent is the original factory (unique to a single brand). We generally understand that dealers and distributors are integrating market resources, serving customers and supporting from multiple points!

7. Dealers are divided into ordinary dealers and special dealers. The former has no restrictions, just like ordinary daily necessities outside, while the latter has some special agreements with big agents or manufacturers in sales and product prices. Dealers are between agents and dealers. An agent refers to a merchant who is authorized by the manufacturer to sell products in a certain area during the sales process. It is divided into four levels: regional, national, provincial, city and county, and it is also divided into exclusive agent, general agent and graded agent. All agents have corresponding permissions. In principle, low-level agents are managed by high-level agents.

Dealers and factory representatives

Many companies write about the responsibilities of factory representatives: effective management of dealers. With this statement, many salespeople seem to take swords from above, as if they are managing decently. In fact, the word management does not really express our responsibility to the dealers. It should be said that the work done by factory representatives for dealers should focus on four aspects: guidance, assistance, communication and control. Taiwan Province people's understanding of this can be summarized by the word "business flow". You know, most of our sales people only do one thing about "logistics", that is, urge the dealers to type out the money and coordinate the company to deliver the goods to the dealers on time, that's all. The concept of "business flow" is to consider how to pull up from the terminal, guide dealers how to operate products, assist dealers to establish distribution channels, act as a bridge for manufacturers, facilitate smooth communication between them, and control dealers' operation behavior.

Ten factors affecting the development of dealers

1. Speculation, profiteering and insincerity in corporate values still exist in the development of domestic IT distributors. In order to adapt to such an environment, some salespeople will do some deceptive things when coordinating and communicating with customers. In fact, most of the people who suffer in the end are self-righteous smart people. I lied to my client for the first time. What about the second time? How much will it cost to make it up? This is the reason why many good brands are getting worse and worse in the hands of a dealer. For dealers, there should be cultural connotation of advocating righteousness, respecting human feelings, embodying credibility and spreading correct values in enterprise management. Gone are the days when a company declared bankruptcy because it got a loan or defrauded a sum of money. Dealers cultivate the market well, and the development of enterprises can come naturally, with peace of mind and effort. 2. Human resources pay attention to talents and respect employees is a loud slogan shouted by dealers today, but how much has it really achieved? In Jiangxi, it is a common phenomenon that salesmen of home appliance agents such as Siping and Nanfang earn 50,000 to 60,000 yuan a year, as high as 100,000 or even 200,000 yuan, but brain drain often happens. For dealers, products, talents and network are the foundation of their survival. The instability of talents often leads to the temporary or partial paralysis of the sales network, which is very common in the marketing field. Hegemonism of individual bosses, individual heroism within enterprises and unbalanced management are all reasons for brain drain. 3. Systematic management The development process of domestic distributors can be summarized in three sentences: courage in the 1980s, capital in the 1990s and management in the 20th century. Dealers must have their own advanced marketing management system, and strictly control the consistency, rationality, systematicness and systematization of implementation. For example, the financial department should not only be responsible for the operation of funds, but also manage the account period and assist in sales; The Ministry of Commerce should not only do a good job in customer management, but also do a good job in order management and item management. The warehousing department should not only do a good job in inventory management of best-selling products, slow-moving products and damaged products, but also collect feedback in time; The logistics department should not only be responsible for distribution, but also know how to plan orders. Although on the surface, all departments are independent of each other. However, in practical work, timely communication and mutual assistance are needed to transform the original transit operator into a marketing operator, provide a professional service system for manufacturers and downstream outlets, and become market managers and leaders. 4. Development Planning Many dealers are eager to represent more good brand products or have greater regional agency rights, but why never consider whether their financial arrangements and personnel placement can be in place and whether they can meet the requirements of manufacturers? Some agents, perhaps considering the problems of operating costs and profit margins, tried their best to increase the agency rights of the two brands. In their view, this can save more storage, travel, wages and other expenses. More brands and more profits can make the East shine. Who knows, several warehouses and businesses have been added, but the benefits have not increased much. On the other hand, funds can't turn around quickly, the inventory backlog is unbalanced, and the best-selling brands have no money to purchase goods. As a result, they almost lost their agency qualification and had to use mortgages such as real estate and cars to maintain their capital turnover. It is not that the bigger the stall, the higher the profit. The decline of many well-known enterprises is precisely because of the crazy extension expansion, which leads to the weakness of their main products and the decline of market competitive influence. Dealers should first make their main products refined, refined, stronger and bigger, and then plan for greater development. 5. The product mix can not only prevent price wars and goods fleeing, but also condense the centripetal force of the sales network and strengthen the influence of the terminal. Therefore, the most important thing is to consider the product combination of various products distributed by merchants. In this way, when selling, it can not only promote each other's sales, but also use the complementarity between products to adjust the turnover rate of goods and accelerate the withdrawal of funds. The more detailed the distributor's product mix is, the more it can strengthen the channel operation ability, generate economies of scale, save costs and create profits. 6. Financial Management At present, there are still many dealers whose financial management only stays on the simple sunrise bookkeeping, and their operating expenses are paid at will, and the procedures are incomplete, which cannot be reflected in the financial books. In the minds of many dealers, the money they earn can be controlled at will, and the only approving personnel may be their wives, mothers and other relatives. Most of the time, these approvers just act as the chief financial officer. As for the salary standards, reimbursement standards, shopping standards and hospitality standards of company employees, they are often not considered, and there are no sound procedures and systems to regulate them. Therefore, many dealers sometimes think: "I usually earn a lot of money, except for those miscellaneous expenses, how to calculate at the end of the year?" Therefore, dealers must establish and improve their own financial management system, and monthly sales, profit and loss, assets and liabilities should be reflected in detailed data. Only in this way can we know how much we have earned, how much we have lost and what we need to do to reduce operating costs and turn losses into profits. 7. Responsibility, power and benefit In the management mode of dealers, it is not difficult to find that the phenomenon of one person with multiple functions and one person with multiple functions is the most common. Unclear powers and responsibilities often lead to poor performance and mutual shirking. In today's increasingly fierce market competition, we must first establish a marketing team with excellent quality, fully clarify everyone's responsibilities, rights and interests, and implement who sells and delivers goods to people; How to assess people who cross posts and have multiple jobs should be fully institutionalized. In order to effectively mobilize the enthusiasm of sales staff, we can try to decentralize the market policy, give employees more room for market operation, and implement the linkage of regional market responsibilities and rights, so that they can really get rid of the mentality of migrant workers and manage the market from the perspective of operators, thus improving the cohesion and combat effectiveness of enterprises. 8. In line with the thinking of manufacturers, manufacturers value sales and dealers value profits, which is the focus of contradictions between the two sides. Some dealers often disregard scale profits for petty profits, preferring to earn a few more dollars rather than small profits but quick turnover. Manufacturers and merchants complement each other, and will not strip too much profit from dealers in order to expand sales, and will not kill the goose that lays the golden egg for sales. Why do manufacturers launch sales strategies such as monthly return and annual return? This is not only an incentive, but also to protect the profits of dealers and make the cooperative relationship between the two sides more harmonious. 9. Relationship between upstream and downstream outlets Dealers should always keep in mind the interests of retail customers at outlets and take care of and operate their downstream outlets as their own branches. Dealers can try to manage distribution outlets in the form of shares or franchises. No matter what kind of operation mode, as long as you have this sense of partner service, you can form a * * * interest body with the distribution outlets and avoid intrigue between dealers and distribution customers. Dealers should give maximum support to their powerful outlets in terms of manpower, material resources and resources. The benefits of outlets are good, and the profit points of dealers can be more. 10. The power of alliance In order to avoid the deterioration of competition, a mature commercial wholesale market generally has a special committee to exchange information, exchange ideas, draw a blueprint for development, coordinate internal contradictions, and deal with emergencies at critical moments. However, the dealers who represent a single brand have a weak competitive advantage in the market, so we should make full use of the collective strength. Cooperate with some partners without conflict of interest to form an inter-brand alliance, which can handle problems as a whole team. Such as unified negotiation, free delivery, promotion support, personnel management, etc. All projects match each other, help each other, support downstream distribution outlets, and fully gather resource advantages, which can generate greater deterrence and save resources.