Thread: Advice:dealership or distributorship

you may see a anywhere from 13 to a 20% increase in pricing, and then shipping charges may be higher as well and the Distributor may charge an additional drop ship fee. So yes it would be safe to say you can expect and increase. but you may be able to work out terms with them if you are in good standings and are a repeat dealer with the manufacture.
Good luck to your future ventures.

In many cases where a manufacturer has defined price levels and you are a dealer, buying at dealer price, the fact they get a local distributor should not affect your cost.

It may even cost less, as you will only be paying local shipping, rather than international.

It really does depend on the company, the distributor and how tightly the company holds the distributor to the published policies and prices.

There is no way to know until it happens, unfortunately.

guys.
i have experience something similar for another product.
the local distributor quoted me double of the price he was getting from the company.
that left me no room for a profit margin.
i could apply for a distributorship for the product but im not sure what a distributors job entails.
can someone guide me there?

Every company will have their own requirements. There is not set laws or anything.

Simply ask the people you are buying from and see what they say.

I agree with Pete.
Some distributors will require you to stock product to get the best deals and some will have a little bit higher price if you cant stock.

But you can always get better pricing to give yourself a higher profit margin if you do stock. Stocking can be good and bad. If you have the opportunity to stock a product that you sell all the time i say do it. Your profit margin will go up which will give you more opportunity to further your business ventures.

Some company's will also give you payment terms if you stock. So you could have the opportunity to get the product and sell it before the payment is due. Its always great to be able to get the product sell it then pay for it, you have no money tied up in inventory (as long as you sell the product). Most places will give you net30 terms

Thanks guys for ur 2 cents.it helps.
I'm a new company and most braAndAs want experience.
Is there a proper way to bag the distributorship?
Would a feasibility study for the product help?
Do u think there are experts who can help a new company?
Any advice guys?

Available capital, industry experience (either in that specific field or wholesale distribution in general, or both) and being able to produce some good personal and business references would be important.

Having a few prospects ready to place orders would also help.

Keep in mind they will probably want you to actually distribute (wholesale to other retailers), not just buy at a lower price for your own retail sales.

Storage space, good location distribution-wise, proven business successes in the past / currently, membership in trade or civic associations can all be helpful.