Ability a Distributor Must Have


Ability a Distributor Must Have

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If you are starting to consider starting a distribution business, there are several things you need to have in order for your business as a distributor to succeed. Those who want to try to get started initially will also need these qualities and skills to be successful. Here are the things that distributors must-have for their business to run successfully:

a. Negotiation
If you want to make a profit, as much as possible you should buy goods at prices lower than the average wholesale value in the market. This requires that you negotiate with the manufacturer to get the right price, so you can sell these items at market prices so that the margin you get is also high. You must also be smart in negotiating through communication with customers to convince them to buy from your distribution business, not from your competitor’s distributor.

b. Logistics Management
The main job of the distributor is to transport the product and deliver it to the client. This means your company will be responsible for taking goods from the manufacturer, storing them in the warehouse you have, and sending them in a timely manner to clients. If you do not implement good logistics management and make deliveries on time, then be prepared to face the fact that your clients will turn to other distributors. Logistics management is arguably the most important thing you can do to maintain your relationship with your clients.

c. Key Account Management
This is a skill that will be useful to maintain and enhance your reputation towards clients. Key Account Management is an attempt to build a good and sustainable relationship with your clients. Because according to the Pareto Principles, about 80% of your company’s revenue comes from around 20% of your customers. This means you have to segment your clients to find Key Account Management and focus on maintaining and expanding it.

d. Marketing
To get the right customers, you need to learn how to market the products you offer to new clients and how to approach other potential clients. Don’t expect new clients to come to you. But learn how to look for them through appropriate, effective and efficient marketing efforts.

Choose the Product List You Will Distribute
Before you start distributing or looking for clients, you have to decide what products you want to buy and sell. You can search for various product references from the internet or the distributor community network that you know. There are a number of large distributors who supply goods to large retail companies. But many small retail companies and lower middle-scale stores do not have consistent access to large distributors. This could be your opportunity! Find the types of products that these small retailers need and start offering them to them.

Examples of some of the best product specialties entered in various startup businesses are wholesale clothing, clothing accessories, home decor, toys, and electronic items such as fans, audio system utilities, and others. These types of goods are usually in demand by many companies or lower middle class retailers. These items have a size small enough to be stored and relatively easy. And these items are not seasonal, their needs tend to be constant throughout the year. An exception is fashion style products because fashion style trends tend to change quickly based on the season.

After you understand the points related to the distributor’s business opportunity, one thing that you should not forget is how you record and report every transaction that occurs between you as a distributor and client. To handle this, you can use a Journal.


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