How to Become a Distributor? See the explanation in just 7 steps.

How to become a factory distributor is the most sought after thing in this era of globalization. This is motivated by the rapid consumer demand for an item, consumptive behavior, thus opening up new business opportunities, namely becoming a distributor to meet the demand or desire of these consumers.

how to become a distributor

Being a distributor means that you are ready to get big profits. Even this business can also be done without capital and still be able to generate significant turnover. Distributor himself is someone who takes direction from the producer in the form of a finished product and sells it directly to consumers at a market price or lower.

Not a few people are interested in becoming a distributor, especially if it can be done without capital. Therefore, the competition in this business opportunity is also getting tougher. There are two things that must be owned to start this business, namely markets and relationships. These two things are related to each other because these two things represent the sale and purchase of goods.

The very fast development of the business world or business makes it easy for someone to have their own business without having to create or innovate products. For example, by becoming a distributor. Even though the goods are sold from other people, it is possible for a distributor to be successful and reap an ever-increasing turnover.

For those of you who have just had the desire to build a business to become a distributor, you should refer to the following reviews regarding the scope of distributors that has summarized from various sources so that you can become a successful distributor.

How to Become a Factory and SME Distributor?

How to become a factory distributor in the current era is quite easy, considering that itself is experiencing an increase in the number of household-scale industries, MSMEs. By buying goods or products from MSMEs, distributors not only get benefits but also help lift domestic products.
If this is done in a structured and systematic manner, it is possible that the supply chain will rotate and of course, this will have an impact on the country’s economy. Then how do you become a factory distributor? Whether it’s a factory in the sense of a large scale or a small scale like MSMEs, here is the information:

1. The True Meaning of Distributor

the meaning of distributor

Generally, the distributor is defined as the party who purchases the product from the producer, and the product is resold to the retailer or directly to the final consumer.

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

That way, it can also be said that distributors only take and distribute finished and ready-to-use products without any modification or product innovation.

2. Distributor Benefit Scheme

In the trading world, distributors are the first hand in distributing products from producers to retailers or end consumers. Determining the benefits scheme obtained is very easy, which comes from discounts or price discounts given by the producer. If a distributor buys a lot of products, the more price discounts the producer will get.

3. Main Functions and Duties of Distributors

Distributors have a function as intermediaries in the world of trade, 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 related to products, and conducting product promotions.

4. Know the Types of Distributors

The world economy does not only focus on trading products in the form of goods but also services. Likewise with distributors. So far, the 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, distributors of this level only sell goods to retailers.

The distribution process is quite long, starting from the producer selling to the distributor. Distributors only distribute goods to retailers first then to 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 the producers selling their products to distributors and continuing directly to the end consumers.

  • Private Distributor Company / Individual

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

First, starting from the producer, proceeding to private distributors than to the final level consumers. Second, it starts with the producer and is passed on to private distributors, then sent to other private distributors and then to the final level consumers.

5. Product Distribution Chain is Important

Product distribution chain

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

It could mean that marketing is one of the keys to success in 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 is created, it will not be able to sell in the maximum number if there is no optimal marketing process.

6. Understand Effective Marketing Strategies

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

  • Build a distributor chain

It cannot be denied 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 in order to reach a wider market.
Creating repeat orders through a competitive pricing strategy
The price of a product is one of the keys to repeat orders. Most people, of course, will choose products that are relatively affordable and able to provide the benefits as needed.
Thus, it is an endeavor to make efforts for producers and distributors not to raise or give too high a price.
In addition, keep in mind that the prices given by producers and distributors will gradually increase until they reach the last consumer.

  • Strive for the product to rotate quickly

Product turnaround speed 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 drop-ship system, affiliates, or other efforts so that the products offered to reach the end consumers quickly.

  • Have a Trading Strategy

Becoming a distributor can indeed be used as a first step to start building a business or business from scratch. However, as a distributor it is also necessary to have an accurate trading strategy to attract many consumers, considering that currently, competition between distributors is also very tight. For example, with an attractive promotion, selling attractive goods or services, and so on.

7. Cooperation with several parties

In order to be successful as a distributor, relationships must be built properly and carefully. Careful is meant in the terms of determining who is suitable to serve as a relationship. Don’t get the wrong choice, not a few distributors fail, due to the selection of an inappropriate relationship.

It is quite easy not to become a distributor by following the way to become a factory distributor that has been described in full above. So don’t hesitate anymore to start this very promising business. And one more thing, it’s better to prepare capital if you don’t have good relationships and or communication skills. thanks.

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