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Types of Distributors

By Edited Oct 20, 2016 0 0

If you're wondering what the type of distributors are or you work for a distributor and you aren't sure what type of distributor that you work for, then you this article is great for you! First of all, you need to know what precisely each sector does and then go from there. Keep in mind that every company is much, much different than the others, however. So, take this with a grain of salt, but do keep in mind that it's fairly accurate regarding most companies.

Independent Distributors

These distributors work primarily for themselves. They may order form larger companies, but for the most part, they distribute their own products or those that they order form a larger company. They do not work for that larger company, however. What this means essentially is that they're working for themselves—using another companies products. It might sound a bit confusing at first, but it's actually a super simple concept once you get the first part down. Now, this can mean quite a few things. Most of the time, these distributors are local. They may be regional, depending on how far their warehouses extend. Again, they're mostly local, but that depends on the distributor.

Dependent

Now, when it comes to a dependent distribuidor (distributor in Spanish), they're essentially the many different branches of one larger company. In short, they work for that company. Like, Pizza Hut and KFC and Taco Bell are actually all part of one larger company, the same is true of dependent distributors. This means that they will most likely have a specific quota that they need to meet for that particular company. Most of the time, each branch will have a quota or a goal that needs to be met for the main company and what affects one part of the company affects the whole!

Products

The products that each distributor sends out depends on what they sell. Most of the time, a food distributor will go around and have one person check on the stores to see what they have left in stock or want to order and then place an order for them. Another person or the driver will go in and place the products on the shelves. This is, of course, after the product is delivered. The rest is kind of obvious...it's what you do! As for furniture companies and the like, things probably work a bit differently.

Finally—How Are They Paid?

Most of the time, with every distributor, there is a certain pay scale. The pay scale can be done on a commission basis or it can be done based on your hourly work. It all depends on the company. While some favor the hourly basis when it comes to distribuidores (distributors in Spanish), others are a little leery since they have the potential to make more money on a good day—but also have the potential to lose money on a not so great day. They both have their upsides and their downsides. However, this will all depend on the company that you work with. Just a few things to keep in mind!

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