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4/26/2018

Difference between manufacturer distributor retailer consumer

All we have little confusion with difference between below mentioned relationships,



1.Difference between distributor and dealer
2.Difference between distributor and reseller
3.Difference between distributor and wholesaler

This is the first basic step to know about Distributor, Wholesaler and reseller.

Difference between distributor and dealer

Distributor means "one who has direct relationship with manufacturer in certain category buying". Here manufacturer also has some limitation to provide distribution to control quality of the distribution. Some manufacturer will expect particular stocks to keep in distributor warehouse or may expect deposit also. Its depend on the manufacturer. Basically once the distributor will complete all his/her documentations or eligibility criteria, He/She can directly purchase products from manufacturer with the all available discounts from manufacturer.
Here you may have quation "Is it Reseller also can buy from manufacturer"?
No. Here manufacturer will share opportunity with all to involve in distributor part, Only who will enroll as distributor with manufacturer, They only can buy. Manufacturer will not supply to reseller.

Basically distribution concept is running to control entire consumer market in the world. Because manufacturer also provide distribution to only "One who have capacity to control consumer market in the city with that particular category".


Difference between distributor and wholesaler

Here is just small difference, Till now we have discussed about Distributor and now we are going to know wholesaler. Small difference is Distributor will have limited access in brand and category based on the capacity, But in wholesaler will not have any control with any brand or category. Wholesaler is able to buy any brand and any category". Here wholesaler will not have direct relationship with manufacturer, Wholesaler will buy product in bulk with distributors or importers with the best discount. Distributors will provide more discount on bulk sale or wholesale sale. If we compare with reseller and distributor relationship with discount, Wholesaler will get more discount due to bulk purchase.


Difference between distributor and reseller

This is the last part or end part in Market. All the manufacturer will have same process like sending goods from Manufacturer to distributors at best discounted price. So finally these distributors will distribute the goods in there area or city limit retailer to sell the products. Here also some condition applicable with distributor and reseller. Only distributor will provide the product based on the reseller business history or back ground of money.
Once the distributor got the product product from manufacturer, He/she will add some margin/profit over the product and sends to reseller.
Here reseller will only focus on margin, If any brands are giving more margin compare to others, Sure reseller will push the customer to buy product with added margin/profit price from reseller.
Finally customer will be the payer, He has to pay all distributors and resellers margin will all inclusive of taxes.

So finally the average of the calculation will work like below
1 Smatphone MRP 9999
Manufacturer production cost may comes from 20 to 50% on MRP,
So manufacturer will add little profit/Margin over the production cost and sell it with distributor in wholesale price,
Now the price of Mrp Rs 9999 smart phone is around 40 to 70% from manufacturer. Next distributor or wholesaler will add his/her margin on product. It might comes from 15% to 50% also based on distributor and sell it into reseller or retailer. Now the price of Mrp Rs 9999 smart phone is around 70 to 90% on MRP. Finally retailer will sell that smart phone at MRP into the customer. Customer will pay all margins and taxes.

This is the relationship of Manufacturer, Distributor,Wholesaler and reseller.

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