What is the difference between a distributor and an agent?

Differences between agency and distribution An agent is paid commission on a percentage basis. A distributor sells the product to the customers and will usually add a margin to cover costs and profit. The agent does not own the products. A distributor owns the goods, and takes the risk of the goods not selling.

What is an agent in distribution?

Agents. An agent, sometimes referred to as manufacturer’s representative, works as a sales person contacting potential buyers, promoting the manufacturer’s products and closing sales. They do not own the products they are selling and do not keep an inventory; they will sometimes have samples, however.

What is agent different types of agent?

Types of Agents Special Agent- Agent appointed to do a singular specific act. General Agent- Agent appointed to do all acts relating to a specific job. Sub-Agent-An agent appointed by an agent. Broker- An agent whose job is to create a contractual relationship between two parties.

What is the main difference between agents and wholesalers?

Merchant wholesalers buy from manufacturers and sell to other businesses. Agents and brokers are essentially independents who provide buying and selling services. They receive commissions according to their sales and don’t take title (ownership) of the merchandise.

What is the difference between sales agent and sales representative?

The first and most obvious difference between a sales rep and a sales agent, is that a sales rep works directly for your company. A sales agent is usually self-employed and works as an independent contractor. A sales agent may have multiple clients that they represent.

Who are distributors in business?

A distributor is a person, entity or selling agent who works independently to sell the products of a manufacturer, and is bound by a financial contract. They act as the middleman in the entire supply chain process and are directly connected with the manufacturer.

Who is sales agent?

A sales agent is a sales person that works on a self-employed basis. They are usually rewarded by commission payments for their sales. Sales agents are independent and work with businesses, rather than for them, they are not an employee.

Who is substituted agent?

A Substituted agent is a person who is named by the Agent for performing such part of the business of the agency as is entrusted to him. 2. Sub-Agent works under the control of the Agent. He is the agent of the Principle. Substituted Agent works under the control of the Principle and he is an agent of the agent.

What is the difference between sales rep and distributor?

Distributors are companies that purchase products + house them temporarily in their own facilities, before reselling them to wholesale buyers. Sales reps are seasoned sales professionals who represent your brand to wholesale buyers with whom they’ve already cultivated a relationship.

Are representatives agents?

An agent works on behalf of a client to secure employment for a business client whereas a representative usually works with an established company to sell goods and services of that company. A representative may work in almost all areas of retail and levels of pay from a store clerk to a car salesman.

What are the different types of distributors?

7 types of distributors

• Direct. With direct distribution, the producer of a product directly sells to a consumer.
• Indirect. Indirect distribution uses other channels besides the direct to consumer method.
• Exclusive.
• Intensive.
• Selective.
• Dual.
• Reverse.

Who is an agent and who is a distributor?

An agent is someone who acts on your behalf. Although an agent may arrange a sale, the sale contract will be between you and the customer. An agent may be an employee or a self-employed agent. A distributor is your customer. The distributor then sells the product on to their own customers.

When is an agency agreement better than a distributor agreement?

There a number of situations where an agency agreement may be preferable to a distributor agreement. If the business wants to retain greater control of the terms of sale of its products or services, in particular the price. If the business wants to restrict the agent’s freedom to choose the customers that they deal with.

Can a distributor impose price maintenance on a distributor?

Imposing resale price maintenance on a distributor is unlawful in most countries, but by selling through an agent the business can retain the freedom to safeguard its own prices for sale. If the business wants to restrict the agent’s freedom to choose the customers that they deal with.

What happens when you sell your product to a distributor?

You then sell your products directly to these customers and pay the agent a fee or a commission for the introduction. This means the distributor will be accepting more risk. They will be buying stock from you so will need premises to store it and all the necessary facilities and resources to sell it on again.