Various dealers work in the modern market:official, exclusive and other. The functions they perform are sometimes so different that it is difficult to determine what a dealership is. By definition, the dealer is a legal (physical) person who performs intermediary functions in the implementation of sales transactions. In this case, the dealership contract is concluded, and the person acts on its own behalf.
Thus, the dealer acts asintermediary between the manufacturer and the buyer in the wholesale trade. His actions are performed on the basis of concluded contracts, which provide for the transfer of ownership of products from the supplier to the dealer, and then to the buyer. At its core, a dealership agreement has an agreement to buy or sell. In fact, the dealer is a simple intermediary, reseller of goods. However, today there are many companies in the market that call themselves dealers, and in fact are attorneys or commissioners in factual relationships.
Classic dealer from the definition of WesternThe economy is the original link in the intermediary chain and finds its place in direct relations with the manufacturer (supplier). Dealer agreement is an agreement that is concluded between the dealer and the manufacturer, it defines their duties and rights. Still, the relations of the parties are not limited to just the supply of products. As world experience shows, certain principles and distinctions of classic dealership from ordinary wholesale trade have been developed. In addition to the duties of the payer and the buyer, the dealer has additional obligations to the manufacturer and has certain rights.
First, there are special dealer discounts.Since the dealer is an exclusive buyer, goods are sold to him at the lowest price. This condition is indicated by the dealership agreement. Due to the fact that usually the dealer buys large wholesale consignments of goods, the manufacturer receives an additional income at the actual low profitability due to high turnover.
The second condition of dealership is a representationtrade interests and sales of products of a manufacturer among a certain circle of consumers in a certain territory Most often these are exclusive rights that allow you to build your business, knowing that no one will sell this product among a certain circle of customers or in a given territory.
Having entered into a dealer agreement, a sample of whichprepares the manufacturer, the regional representative gets the right to use the trademark and be called the official dealer of the supplier’s company; in addition, it is possible to choose a specific type of product according to consumer properties, quality and other parameters.
However, in addition to the rights, a large number of duties that are characteristic of these relations also fall on the dealer.
There is a duty to purchasethe established quantity of goods with a certain frequency. And if in one period a smaller volume is acquired, then the difference is transferred to the next period, and the dealer is obliged to sell it. Also, the representative is obliged to comply with the territory on which the implementation will be made. The purpose of dealership is to expand the market and its reasonable legal monopolization. Typically, a dealer agreement extends over a territory that coincides with administrative division.
В обязанности дилера входит проведение рекламных stocks and companies for which the manufacturer does not compensate the costs. Also, the representative must perform after-sales service and trade only the product of one manufacturer.
