How to approach a distributor

[NL5]

Ok, I want to start selling a few products. I know who the distributor is. I will have a business license shortly. What I need to know, is how not to sound like a dumb@ss when I approach them.

Anybody have any tips/suggestions? They aren't local, so it will be via email/or phone. I just want to become a dealer, and want to know how to go about setting that up. What to ask for, what to tell them, etc.

Thanks in advance,

NL5

 

[farmercal]

Just make contact and don't worry about sounding like a dumb_ _ _. I hope your not looking into one of those mult-level marketing schemes. They rarely work out. Good Luck.

 

[NL5]

No, it's real products.....

 

[VictorLazlo]

He's selling drugs!

 

[yukichigai]

Just approach them like you'd approach any business about buying their goods. Except you're buying a lot of their goods. And selling them again.

But yeah, they're a business, don't worry about it.

 

[NL5]

So, just send them an email, and ask for a price list? Tell them I want to be a retailer? That's it?

 

[Hoober]

Originally posted by: NL5
So, just send them an email, and ask for a price list? Tell them I want to be a retailer? That's it?

I'd try to talk to them face to face.

 

[NL5]

I can't, they are nowwhere near here. Only 1 distro for the entire US.

 

[GroundZero]

he's going to be selling amway!

 

[NL5]

As much as I appreciate the witty remarks, it's not MLM...they are pro audio distro's. And if I were selling drugs, I wouldn't need any advice. LOL

 

[NL5]

Anybody else?

 

[Hoober]

Originally posted by: NL5
Anybody else?

Phone call is still probably better than email if you aren't able to sit down with them.

 

[EagleKeeper]

Originally posted by: Hoober

Originally posted by: NL5
Anybody else?

Phone call is still probably better than email if you aren't able to sit down with them.

Be able to have a business plan available.
This way you can demonstrate that you know what you are doing and what your target clients will be.

Do you have financing lined up for the product or are you intending on having them finance your inventory?

Think of as if you are going to a bank for a business loan. Have all your ducks in order, they may not ask for this info, but it is best to be prepared.

 

[NL5]

What if I am paying with cash? (I don't mean avtual cash, I mean out of pocket?)

 

[NL5]

hmmmm...

 

[EagleKeeper]

If you are buying inventory from the person, then a simple phone call and/or letter should suffice for an introduction.

Both are more personal than e-mail.

It would still be useful to have a business plan available. Some people try to become a reseller just in order to get a lower price the retail.

 

[alkemyst]

if there is only one distro for the US there is probably a reason.

The number 1 fact you will need to get clear is that you will make them money. That's what it boils down too.

Now *everyone* claims they can make money, I have some asshat friend that comes up with a million dollar get rich quick plan monthly...yet his dad is still paying his bills (he is 30).

You will need a business license, tax license, a storefront or at least a *real* office. A business bank account is a REQUIREMENT, one Uncle Sam hates mixing of business and personal funds, a company does even more.

Also you really have to know the product or at least who you will leverage.

All in all the average 'distributor' near the top of their chains probably handle 50% bullsh!t calls from kids / people with no clue claiming to make them millions overnight.

 

[Shelly21]

Ah, I remember a friend of my who used to play Magic cards, got a business license for $20 and hooked up with a distributor to sell him boxes of magic cards for 1/2 price.

 

[NL5]

Originally posted by: alkemyst
if there is only one distro for the US there is probably a reason.

The number 1 fact you will need to get clear is that you will make them money. That's what it boils down too.

Now *everyone* claims they can make money, I have some asshat friend that comes up with a million dollar get rich quick plan monthly...yet his dad is still paying his bills (he is 30).

You will need a business license, tax license, a storefront or at least a *real* office. A business bank account is a REQUIREMENT, one Uncle Sam hates mixing of business and personal funds, a company does even more.

Also you really have to know the product or at least who you will leverage.

All in all the average 'distributor' near the top of their chains probably handle 50% bullsh!t calls from kids / people with no clue claiming to make them millions overnight.

Ok, I will have everything you listed. How much of my business plan do they really want to know if I am paying for everything up front? I plan on starting out with one or two of their products only. That way, I can buy a fairly large lot at one time.

I am just planning on this being my spare time job, so I won't even claim to make them millions, but I will make them money, and hopefully it will eventually become my full time job.

I was under the impression that distributors only sold to resellers, and only in bulk. I didn't know their would be so many issues (atleast when your paying cash).

Thanks again.

NL5

 

[alkemyst]

Originally posted by: NL5

Ok, I will have everything you listed. How much of my business plan do they really want to know if I am paying for everything up front? I plan on starting out with one or two of their products only. That way, I can buy a fairly large lot at one time.

I am just planning on this being my spare time job, so I won't even claim to make them millions, but I will make them money, and hopefully it will eventually become my full time job.

I was under the impression that distributors only sold to resellers, and only in bulk. I didn't know their would be so many issues (atleast when your paying cash).

Thanks again.

NL5

It's like a car or home, you are always paying "cash". The distributor is not going to give you credit. The distributor is also concerned about his reputation through you. More often than not problems are pushed up the chain and most successful businesses don't want to risk bad word of mouth.

If you are going to do this spare time and they are the sole distibutor it's doubtful they would want to deal with that....everyone also wants to do things in their spare time. Doing a business in spare time only is also the leading cause of failure and only 1 in 4 or so businesses get to be profitable and even survive the first 2 years.

Distributors can sell to whomever, it depends on the rules they have...this is america they can do business the way they want.

 

[NL5]

Ok, I see what you are saying. However, by doing it in my spare time, I CAN'T fail. Worse case scenario is, I don't make any money. I will have no employee's, and If I don't pay myself unless I make money, I can't lose any money (other than the initial investment). I am fine with gambling the startup money. Well, I guess that would still be failure in a way. My ideas is actually fairly complex, and this would just be the starting off point. What I really want to do, I could only find 1 place in the Portland, OR metro area that does it, and the fact that they make money is amazing. It is one of the WORST places to deal with. They run the business like crap. And, I don't think even they see what is coming the way I do. I am trying to get in on a burgeoning (sp?) market.

I guess it will all depend on if they will sell to me or not. I have several products in mind, so if they won't I would think someone will. How would anyone start a business? We all have to start somewhere.

Thanks,

NL5

 

[NL5]

Hey alkemyst,

I have a question for you that I won't ask on here, I didn't realize that you are actually one of the best people to ask about my situation (just looked up an old thread, and you posted something that pertains almost exactly to my situation). If it's ok, I will pm you with the info and question. I really appreciate all the help.

 

[bmacd]

g'luck man

-=bmacd=-

 

[DeadByDawn]

I work for a distributor, let me give you a few tips:

Find out who the salesman for your region is, if they have one and deal with him.

Find out who their biggest competition is and talk with them first. Make sure and drop the name of the competitors salesman to the guy you really want to buy from, that way they know you've done your homework.

Come up with how much money you want to place in your initial order. Be like "Well I'm going to place a $10,000 order with either you or your competitor, and it depends on pricing".

Don't accept their first offer on what they will sell to you at. NOBODY that stays in business buys at wholesale price, the real accounts get a % discount off of wholesale price.

 

[NL5]

OK, now that sounds more like it. And, I just found out that they have a local competitor, that I may do business with instead.

And, that's about what I plan on spending to start (10k).

I still don't get the "it's like buying a house or a car"...If I buy a car with cash, they WILL sell it to me. I just can't imagine too many distro's saying no to a 10-25k sale. (unless reputation is at stake if they are high-end)