Becoming a distributor carries high-profit potential and access to products before they are available to the public. As a successful distributor, you will purchase products from a supplier and sell them to other companies for profit.
Here are a few tips on how to become a distributor:
What Products Will You Sell?
Since you will be the middleman, you have to decide if you plan to sell one product or multiple products. Are you going to sell inventory from one supplier or many suppliers?
Part of your business strategy will be calculating how much stock you can purchase, carry, and distribute. If you only sell from one supplier, you should ask for higher margins since they will be your main revenue stream.
Research products that interest you. It would be terribly boring to sell something you know little about or don’t like.
Pick a supplier that is looking for new distributors or seems willing to communicate about the possibility.
Contact the Supplier
Contacting the supplier will be your next step towards becoming a distributor. They will generally have a list of requirements and a minimum order limit.
Some suppliers are extremely exclusive and difficult to contact. The exclusive suppliers like to deal with distributors or individuals who have experience in the space.
Another way to contact a supplier is to reach out to a wholesaler in a different space.
If you want to break into distributing tires, contact the best pharmaceutical wholesaler in the UK for tips to get your foot in the door.
How to Become a Distributor and Marketer
Since you are just starting out, you will have a staff of one – you. You have to wear many hats including chief marketer.
For some of you, this will not be a problem. Backgrounds in marketing, public relations, and business will serve you well.
Those without marketing backgrounds can learn from various resources online or in the library. The best marketers will know their products and all their benefits and details.
What’s In a Name?
Pick a company name that conveys what your business is about. A common and successful tactic is to add “distributors” or “wholesaler” at the end of the name.
You want your name to let suppliers and clients know what you do and how you can help them. Remember, this could be a name that lasts for decades to come.
More Research
Even if you have a good beginning stretch of business, consumer habits and tastes can change overnight. Stay current in what’s popular by attending events and doing more research.
Figure out if there is something catching on in another part of the country or world that you should start sourcing.
Attend industry events to know if there are price changes or situations that could affect costs. Prepare for your financial future by attending these events now.
Build Your Relationships
Distribution is a relationship-building business. The lowest costs or highest prices don’t always dictate agreed business. People have to like you.
Are you spending time learning more about your suppliers and customers? Developing those relationships can be the key to repeat and exclusive business.
Your Turn
Now that you know how to become a distributor, it’s your turn to take the first step towards starting an expanding empire.
Don’t stop your education. Great entrepreneurs visit our website to further their knowledge and improve success with our resources.
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