DISTRIBUTORS
A dealer is someone who buys and sells the goods by himself. Distributors distribute the goods and services to other dealers and business.
MY AUTHORIZED DISTRIBUTOR
TENKASI & TIRUNELVELI ZONE
NEXT STEP SOLUTIONS
MR. H. PEER MOHAMED
+91 99447 67268 / 90875 30631
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MY AUTHORIZED DEALERS
VILLUPURAM & TIRUVANNAMALAI ZONE
TAMIL COMPUTER AND MOBILE
MR. TAMIL
+91 81899 69134
Dealer vs Distributor
While both a dealer and a distributor forms an essential part of the supply chain, there are several significant differences between the two that can be summed up in the following points.
A dealer pacts with specific types of products while a distributor is an individual who supplies certain types of products to the market.
A dealer connects distributors with potential customers while a distributor creates the link between the dealer and the manufacturer.
A dealer buys goods to sell them off as part of their regular business, from his or her own stock. Contrary to this, a distributor simply purchases products from the manufacturers and sells them to dealers or retailers.
A dealer can sell off a variety of products as part of their commerce, while distributors usually strictly deal with a single category of products.
Dealers are faced with stiff competition. This is hardly the case for distributors.
While the above points clearly explain the underlying differences between dealers and distributors, the following table can help you to further understand them.
Premise | Distributor | Dealer |
Definition | An individual or business enterprise supplying goods to dealers and other retailers | A person or business enterprise buying and selling goods to customers |
What is their function? | A distributor buys products directly from the manufacturer. | A dealer purchases products and sells them off as part of their own business. |
Role | Agent/Middleman | Principal |
Connects | Dealers and manufacturers | Consumers and distributors |
Deals with | Diverse products | Products of a specific type or category |
Competition | Moderate competition | Stiff competition |
Functional Area | Large | Limited/Restricted |
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Can the Distributors and the Dealers be Authorised?
To answer the question properly you need to understand what kind of jobs are carried out by the distributors and dealers. The distributors purchase items from the manufacturers and sell them to the dealers or the retailers. The dealers purchase the products through the help of the distributors and then sell them on their own. Dealers can also be authorised distributors if they purchase items from a company and the manufacturers of the company have sold their products through the dealers. The authorised dealers ensure to maintain the quality of the products.
How to Start a Dealership Company?
In order to start a company, the dealers must decide the type of products they want to purchase and sell to the customers. They should contact the distributors and suppliers who are reliable. The dealers must set up a suitable workplace and invest to build and grow their network properly. The dealers must be careful while designing the purchase policy and they should also analyse every time how their performance and dealership business is going. It is very important for the dealers to maintain a good relationship with the customers and to make them trust their products and services. Over the course of time, their dealership business will grow.
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