Definition, Function, Types, and Keys to Distributor Success

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Definition of Distributor
In general, the definition of a distributor or distributor is a party that buys a product directly from a producer and resells it to a retailer or retailer, or it can also sell directly to the final consumer.
Another opinion states that the definition of the distributor is a business entity or individual that is responsible for distributing or distributing trade products, both goods, and services, to retailers or end consumers. In this case, the distributor only picks up the finished product and is ready for use without the need to modify it.
In trade, distributors are the first chain after producers. Distributors can be in the form of individuals or companies that buy products directly from producers in very large quantities.
Distributors benefit from discounts on product purchases from manufacturers. The more products purchased from the manufacturer, the greater the discount on the product.
Functions and Duties of Distributors
The main function of a distributor is as an intermediary between producers and retailers or consumers. After discussing the definition of a distributor, we now discuss the functions of the distributor.
Purchase Products
Tasked to buy products (goods or services) from producers or larger traders.
Storing Products
After purchasing a product from a manufacturer, distributors must also store the product in a warehouse for a certain time and distribute it to the retailer or end consumer.
Selling Products
Sell ​​products to retailers or to end consumers at a higher price for profit.
Transporting the Product
The process of moving or transporting products from producers to retailers or consumers is also the task of the distributor. However, the freight costs will later be included in the price of the product being sold.
Product Classification
Responsible for classifying or sorting products by type, size, and quality.
Product Information
Provide information related to the estimated price and marketing of goods at a certain time that will be carried out by the implementer in the field.
Promotion product
Promotional activities aim to introduce products to consumers. This promotional activity includes an explanation of product benefits, product quality, product price, which is carried out through advertising media.
Types of Distributors
In general, distributors can be grouped based on their distribution process. Under the understanding, there are several types, namely as follows:
Goods Distributor Company
In this case, the products distributed are in the form of physical goods. In the distribution process, manufacturers entrust their distributors to distribute products to retailers. Furthermore, retailers who will distribute to the final consumer.
Service Distributor Company
Products that are distributed are in the form of services. In the distribution process, distributors can directly distribute service products to end consumers without going through other retailers. For example, we can see the distribution flow of financial services from multi finance companies to their customers.
Individual Distributors
Basically, individual distributors are in a different scope but there are similarities in the distribution process with service distribution companies. Individual distributors are widely known in the MLM business, where the distribution process from producers to private distributors is then distributed to the final consumer.
Importance of Product Distribution Chains
The key to the success of a business is in terms of marketing. No matter how good a product is, if you are not actively looking for ways to do the best marketing, it is impossible to sell quickly. The key to spinning money quickly is to carry out the marketing strategy as quickly and accurately as possible. The following steps are often taken to be able to market a product quickly:
Creating a Distributor Chain
Make a chain as much as possible so that the product marketing reach is wider. This can be done by creating a business opportunity advertisement by offering other people as distributors.