Many manufacturers, seeking to increase their market reach and get more profit from selling their products, face problems. Opening numerous retail outlets, creating representative offices in different cities or branches – all this is difficult and also entails significant costs.
If you want to sell more and better
the optimal solution is a dealer network. This format is gaining popularity and is one of the business trends of the special database current year and the last few years. To successfully use this sales channel, read this article and find out how to create a dealer network and set up its management to increase income.
What is a dealer network?
A dealer is an intermeiary between the manufacturer and the end consumer. He promotes and sells the products that the manufacturer provides. A dealer network is a set of dealers that sell products of a specific brand to customers.
Building a dealer network in the realities of the modern world is an effective marketing and financial tool that allows not only to sell successfully, but also to minimize costs. This form of product distribution is usually chosen by fairly large manufacturers aime at increasing their market share and developing new regions. Companies that sell both B2B and B2C work with dealer networks.
Dealer network on the site
A dealer is a legal entity or an individual entrepreneur acting at their own expense and on their own behalf. As a rule, they purchase products from a supplier under a supply agreement in bulk or in small lots and actively promote them, making sales. The dealer independently searches for clients and works with representatives of the target audience, is engage in advertising or uses other promotion channels.
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Good to know! A manufacturing company that produces products under its own brand is calle a vendor in the business world.
The dealer’s remuneration scheme depends on the terms of cooperation. Usually, in wholesale purchases, profit 6 schritte zum erstellen eines skripts für ihren chatbot is determine by the difference between the cost at which the manufacturer sells its goods with a large discount and the final price at which the products are sold. Another option is commission fees, which are usually calculate as a percentage of the amounts of conclude transactions.
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Advantages of selling through a dealer network
Doing business with a dealer network opens up new opportunities and has the following advantages:
Increase market share. The more distribution channels, the more active the sales.
Developing new market segments. Dealers can help attract customers from new categories that the manufacturer has not worke with before.
Capturing new territories. With a dealer network, you can launch sales in regions remote from the manufacturer’s location.
Exchange of information. Sometimes dealers have specialize, specific knowlege that will help to understand the reasons for low sales volumes and correct mistakes. For example, understanding the behavior of individual segments of the target audience will help to identify the nees of potential customers and satisfy them by upgrading products or changing the marketing strategy.
A large number of salespeople
There are many more of them in the dealer network than in the company’s own sales department.
Closer connections with customers. Dealers often have a good track record of building stable communications with customers and establishing ongoing interactions with them.
Flexibility of business processes: logistics, management, marketing and others. Working with dealers ensures uab directory prompt, timely response to any changes occurring in the external environment. This is due to the effective analytical and information integration of the dealer network participants.
