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Difference between a distributor, a wholesaler and an agent?
Post 42 of 93
Iclasa
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Replying to [Admin]:Distributor is someone that distributes goods for a factory.
Wholesaler , sells on bulk or quantities at a cheaper .
Agent , acts as a middle men
18 Oct 2006 15:07
Post 43 of 93
norkadis
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Replying to [Admin]:I work for a distributor in Western Europe...

First of all, distributors CAN have large stock, but don't neceserally work that way....they can reserve stock at a manufacturere. Distributors sell almost never to end users, only to resellers and wholesalers.

Wholesalers buy large quantities from 1 or 2 products from distributors, stock them and sell them in smaller quantities to little stores or other resellers.

Agents (and yes, we work with agents) are people who do a sort of lobbying.... they know certain products or markets very well and act on behalf of a distributor or manufacturer. Most of the time they make the deal and are the middleman and receive a commission (our agents get 32% of net margin)

In some countries, the difference between a distributor, wholesaler and reseller is very small :)
18 Oct 2006 15:26
Post 44 of 93
david3
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Replying to [Admin]:
[em17]
Distributor: primary role is the transport, order/tracking and (possibly) storage of goods being supplied. They usually charge a fee + costs for transport and storage (over time).

Wholesaler: primarily deals in lager orders of goods; and releases these is smaller quantity to retailers, other (smaller) wholesalers, or trade personel. They cover their costs by a 'wholesale margin', usually as a small percentage of the value for goods supplied.

Agent: Any person or agency supplying some service, communications or information, on either a (fixed cost) retainer, or for a (percentage) fee.

There is no particular reason why a person or agency could NOT be a mixture or be of all three types. They may also provide a different type of service for different cl of goods, greater/lesser scale, or for a particular geographical area.
18 Oct 2006 15:26
Post 45 of 93
Replying to [Admin]:Distributor is the main point from where products/services can be distributed to variouse points e.g. whoesaler/agents.

Wholealer is the point from where products/services can be delivered to Retail Selling points.

Retail Salling Point is the point from where products/services can be sold to end user.

Agent is the point who can act in all of above three categories depending on the terms and conditions.
18 Oct 2006 15:57
Post 46 of 93
NOCVIC
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[em8]
WHOLESALER: Supplies Distributors and/or Agents; carries most of the risk; Makes manufacturers, shipping agents, customs, banks and customers "RICHER" from what seemed like good profit margins originally. Works long hours with high stress levels for very little "Return on Investment". Generally has poor cash flow because all thier money is tied up in Stock, Buildings and Staff and slow paying customers (Distributors).

[em1]

DISTRIBUTOR: Usually buys stock through wholesaler after negotiating rockbottom prices; Continually complains that he is still paying too much; fits into one of two selling models: 1) Try's to on-sell goods at highly inflated prices well above market pricing; then complains when he can't sell goods and wants to return stock at full value. (most likely your still waiting to get payment anyway) or
2) has no idea of market pricing, ROI or costs of doing business; goes to market selling product well below market price causing collapse of product value; having devalued the product then starts to re-negotiates buy price because he's making no profit!; eventually pays for goods before going bust (if your lucky!)

[em3]

Agent: All Care, No Responsibility (No Risk). A middle man that does as little as possible, and makes as much as possible, for adding little value, if any. Commonly refered to as a "Parasite". Often heard bragging about the number of "contacts" he/she has in the industry. Expert at drinking coffee. Know to become agressive when commision is held up.[em1][em1]
18 Oct 2006 16:08
Post 47 of 93
Nass
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Replying to [Admin]:distributor is someone who buy in bulk and hold a large stock at all the time up to one year. Distributorship requires a huge investment. Wholesaler is someone who sell to retailersand end users. hold stock up to 3 to 6 months. requires medium to large capital. Agent is someone who buys in bulk and sell. holds no physical stock and requires a little investment. works on a commission as wel.
18 Oct 2006 18:37
Post 48 of 93
Replying to [Admin]:
DISTRIBUTER:As name says the person who distribute that particular product throughout his entity or area`s whole saler.he stock the product by investing capital, and then carry out the distribution process.(factory price+distribur`s profit )

WHOLESALER:The person who takes the responsibility after the distributer to sell this product to the retailer is the wholesaler.
(factiry price + distributer profit + wholesaler profit).he also invet capital to purchase in bulk.

AGENT:works on some other`s capital and helps to make a deal finalized.Agents works on the commison bases.
18 Oct 2006 19:10
Post 49 of 93
Replying to [Admin]:
distributor:the one who sell to certian people inside his country and did not sell to end user directly.the factory did not have strick contract with him for the volume of buying for each year.

wholesaler:the one who sell to known or unknown people inside his region or outside depend on the one who like to knock his door.

agent:is the sole seller inside his country and he has special prices (with discount) and normally have contract for the volume of importing from the source.
18 Oct 2006 21:27
Post 50 of 93
Replying to [Admin]:
Company appoints Distributors for the region ---> from the distributors wholesalers purchase the material ----> from the wholesalers its goes to retail.

18 Oct 2006 21:28
Post 51 of 93
Replying to [Admin]:

Distributor:
1 )they are decicated with Brands: not with type of goods : for example a Distributor for Samsung IT Products : is Decicated with IT Products but specially with Samsung:
2) Distributor also having enough Stock for that item you can say they are stocking partner of Brand :
3) They purchase from Direct Company:

Wholeseller :They are dedicated with Items(Goods/Industry) for example a Wholeseller for IT Products : they offer all brands you can say they sell what ever brand what market demands:
They purchase from Distributor but some time they offer lesser price then a Distributor can offer: They also having stock on hand of all brands

Agent: they are again dedicated with company / Brand they dont keep stock: generally they use samples and they orders matrial on customers demand : they purchase matrial from Distributor / company.
18 Oct 2006 21:43
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