What are the differences between agents and dealers?

1. The conceptual difference between agents and dealers 2. Different dealer businesses 3. Different agent businesses 4. Different channels from manufacturers to retail terminals 5. Differences between distribution and agents 6. Different profits between dealers and agents

1. The conceptual difference between agents and dealers: 1. Distribution generally refers to an agreement between a dealer and a manufacturer or supplier to purchase and sell designated goods within a specified period and region.

In a distribution situation, there is a buying and selling relationship between suppliers and dealers.

2. From a legal perspective, the relationship between the supplier and the dealer is person-to-person. The dealer purchases goods in his own name and resells them in his own name within the specified area.

Business risks such as price fluctuations must be borne by the dealers themselves.

3. Distribution can be divided into general distribution and exclusive distribution.

In the case of exclusive distribution, dealers are generally required to have minimum transaction quantities and are not allowed to distribute products from other competing suppliers.

4. Agency refers to the "agency right to sell goods" granted to an agent by the agent or principal. Within the sales agency authority, the agent collects orders, sells and handles sales-related matters on behalf of the principal.

2. Distributor business is different: 1. Independent operating organization; owns the ownership of goods (buys out the manufacturer's products/services); obtains operating profits; 2. operates in multiple varieties; the process of operating activities is not or rarely affected by the supply

Restrictions on suppliers; equal responsibilities and rights with suppliers 3. Agent business is different: 1. Not necessarily an independent organization; does not own the ownership of the goods (agent for the manufacturer’s products/services); earns commissions (commissions); 2.

Business activities are guided and restricted by suppliers; supply power is greater.

4. The channels from the manufacturer to the retail terminal are different: manufacturer → general agent → first-level agent → second-level agent → dealer → sub-dealer → consumer.

5. The difference between distribution and agency 1. The two parties of agency are an agency relationship, while the two parties of distribution are a buying and selling relationship.

2. The agent sells in the name of the client, that is, the manufacturer, and signs a sales contract, while the dealer engages in sales in his own name.

3. The agent's income is commission income, while the dealer's income is the price difference income from the purchase and sale of goods.

6. The profits of dealers and agents are different: 1. The two methods of obtaining profits are different. The former sells at a higher price and obtains operating profits. The latter sells according to the prescribed price and earns commissions, which is the so-called commission.

2. The operating authority of the two is also different. The former can operate many varieties - even competing products, while the latter operates fewer categories and generally does not operate competing brands.