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Relationships Between Producers, Distributors and Resellers

Aug 25, 2011

In the world of buying and selling many times we hear the term producers, distributors / agents, and resellers. Each term has a similar function that is doing the buying and selling of goods or services. The term reseller often arose among the owners of stores online.
Meaning of producers according to Wikipedia:
Producers in economics is the organization / groups / people who produce goods / services that have a use value and value in order to be consumed by consumers. People who wear or use of goods and services produced to meet the needs of the consumer.
It is clear that the producers are individuals who produce items or services for sale or marketed. In selling the producers usually offer a relatively cheaper price because it is a first-hand which sought by distributors.
Producers can be individuals or individuals which perform business activities alone, and could be a business entity that is a collection of individuals which do business together. An ordinary producers market their products directly to consumers or through distributors. Understanding distributors themselves are individuals or business entities that distribute products from manufacturers to retailers or consumers.
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The task of a distributor is to purchase products from manufacturers, separating the product according to the type, size and quality, introducing the product to retailers and consumers. Distributors get products directly from manufacturers or distributors are also referred to as the second hand of the production process. Producers sell products in bulk to distributors, such as a modern Muslim clothing producers to sell to producers a minimum of 10 dozen. Beyond these provisions producers reserves the right not to sell to distributors. There is a possibility to sell directly to consumers with a retail price.
Sales from the distributor usually the special powers given to make sales, so if there are buyers from the region which contained the distributor will be directed to the distributor by the manufacturer. Then the benefits will be bigger.Resellers are third hand of the distributor or agent. Only with a capital of honesty, perseverance, and discipline in selling the product. Resellers directly dealing with consumers as the last user of the process of buying and selling. The benefits of a reseller only on commission from product sales, usually amounting to 2-5% of the price items. Difference of prices given the distributor and the selling price is taken as a commission for the reseller.
The advantage of being a reseller, among others, obtaining a discount or compensation in the form of sales commissions, depending on the initial agreement with the manufacturer or distributor. Make it easier for anyone who wants to start a business without capital. Usually the goods are already known by the public so it will be easier to sell. Free from the sales target is more flexible so that the time to sell.
Between producers, distributors, and resellers have a close relationship and mutual benefit. Distributors and resellers will not sell any product without a producers, and manufacturers will not develop without the help of distributors and resellers.

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