Want to Start a Business Become a Distributor? Let It Succeed, See The Explanation!

The development of the business world or business plan that is very fast makes it easy for someone to have their own business without having to create or make product innovations. For example, by becoming a distributor. Although goods are sold from other people, it is possible for a distributor to succeed and reap an ever-increasing turnover.

For those of you who just have the desire to build a business as a distributor, you should consider the following review of the distributor’s scope that has been summarized from various sources so that you can become a successful distributor.

1. The True Meaning of a Distributor

Generally, a distributor is defined as the party that purchases a product to the producer and the product is resold to the retailer or directly to the end consumer.

There are also those who argue that distributors can take the form of individuals or business entities that have the responsibility to distribute the products produced, both in the form of goods or services. Distribution can be done to retailers or end consumers directly.

That way, it can also be said that distributors only take and distribute finished products and are ready to use without any product modifications and innovations.

2. Distributor Profit Scheme

In the world of commerce, distributors are the first hand to distribute products from producers to retailers or end consumers. Determination of the profit scheme obtained is very easy, which is derived from a discount or discount given by the manufacturer. If a distributor buys a large number of products, the more discounted prices are obtained from the manufacturer.

3. Distributor Main Functions and Duties

Distributors have functions as intermediaries in the world of commerce, from producers to retailers or end-level consumers. Therefore, the existence of a distributor is very important.

In addition, distributors have tasks that are not simple and quite complex, including purchasing products, storing products, making sales, transporting products, classifying products, conveying information about all matters relating to products, and promoting products.

4. Know the Types of Distributors

The world economy is not only focused on trade in products in the form of goods but also services. Likewise with distributors. During this time, distributors who are familiarly known are those related to products in the form of goods only. In fact, distributors also have several other types, such as the following:

•        Goods Distributor Company

This type of distributor usually distributes products in the form of physical goods. Not only that this level of distributors only sell goods to retailers / retailers only.

The distribution process is quite long, starting from the producers selling to distributors. Distributors only distribute goods to retailers first, then to the final level consumers.

•        Service Distributor Company

This type of distributor only distributes products in the form of services. The distribution process is relatively short, starting with producers who sell their products to distributors and continue directly to end consumers.

•        Private Distributor Company / Individual

This type of distributor is often known in MLM (Multi Level Marketing) practitioners. The distribution process is divided into two types.

First, starting from the producer, proceed to the private distributor, then to the final consumer. Second, it starts from the producer and is forwarded to the private distributor, then sent to other private distributors and then to the final level consumers.

5. Product Distribution Chains are Important

The product distribution chain is always associated with the marketing process. If the marketing process of a business is smooth, the distribution chain will continue.

It can be interpreted that marketing is one of the keys to success in a business. For this reason, marketing is a process that cannot be underestimated. Without good marketing, it is impossible if a business can run smoothly.

No matter how good the quality of the product created, it will not be able to sell the maximum amount if no optimal marketing process is carried out.

6. Understand Effective Marketing Strategies

Marketing will have an impact on the velocity of money in the business. Therefore, business people must have an effective marketing strategy. An effective marketing strategy can be done in the following ways.

•        Building a distributor chain

It is undeniable that the role of distributors in the business world is very important. Therefore, what needs to be done is to build as many distributor chains as possible with the aim of reaching a wider market.

•        Creating repeat orders through competitive pricing strategies

The price of a product is one of the keys to repeat orders. Most people will certainly choose products with relatively affordable prices and are able to provide benefits as needed.

As a result, producers and distributors are endeavored not to increase or give prices that are too high.

In addition, keep in mind that the prices given by producers and distributors will gradually increase until they reach the last consumer.

•        Striving for products to rotate quickly

The speed of product turnover is an obstacle for most business people. In fact, this method can be overcome by opening cooperation offers with other parties, for example distributors or opening a dropship system, affiliation or other efforts so that the products offered quickly reach the end consumers.