Vendors are an extremely important aspect of domestic as well as international markets. Here is a small guide about the steps involved in becoming a vendor.
We pass by hundreds of showrooms and shops in our lives. We also purchase goods and avail services from these establishments almost every day, but have we ever wondered who are the people that own and run these facilities?
There are several dictionary meanings for the word vendor, like 'trader', 'middlemen' and 'marketeer'. Some of the prominent dictionaries also define the vendors as businessmen who exchange goods and services for money.
Well, let us put these definitions aside and have a look at the practical definition and meaning of vendors.
A vendor can be more appropriately defined as a businessman or an entrepreneur, who acts as a link in the chain that supplies society with a necessity or a particular commodity. He obtains a reasonable profit in the process, that is by no means very exorbitant.
Whatever showrooms and shops that you see today, are the operational centers of vendors. Nowadays, the process of becoming a vendor has changed drastically, and is no longer the same as that of a conventional trader.
How to Become a Vendor
Choosing a Domain
The first question that you need to ask yourself is, which domain of products do you wish to target? You could become a vendor in electronic appliances, computers, or even musical instruments.
Hence, the first step is making a market research survey and calculating the probability of sales. To do this, take a commodity like a DVD player. Then gather data about the different manufacturers, models, and cost.
Also, according the purchasing power of the people, zero down on the cost of the DVD player models that are most popular and then make a list of manufacturers. In the same manner, assess all other related products of the companies, like CD players, plasma screens, etc.
Choosing a Locality
After deciding the domain of goods and services, you again need to decide the area and locality where you want to open your establishment. Assess the competition, in terms of targeted population, presence of vendors, and competitors.
Applying for Agency Approval
After you have finished with the assessment part and have chosen the locality of your operation, then you need to approach and get agency approval from the company whose product you wish to sell.
Before actually applying for the agency of the company, get to know about the other vendors of the same company. It would be even more appropriate and advisable to approach and consult the other vendors.
Most of the companies demand that some conditions be fulfilled from the applicant of the agency. One of the most important conditions is the capital that the applicant is ready to invest in the dealership.
Sometimes, especially in the case of electronics and automobiles, the agency is granted to the vendor if he is capable of providing the right infrastructure, such as a warehouse of the appropriate capacity, or a showroom of the right size.
Setting Up Your Business
The final stage is the most difficult of all stages, as all the supplies, infrastructure, supply chains, etc., are established in this stage.
The establishment of these functions often tend to be very tiresome and exhausting. While putting all these operations into action, you also need to think about all the other factors, such as advertising, publicity, transportation, logistics, etc.
To become a vendor and achieve substantial success, all you need to do is become a very good entrepreneur, and also a very good sales person. Remember that becoming a vendor is not an easy task. One needs to work very hard and provide the best possible supply chain management.