How do I get a hold of distributors so that I call sell their products?
I would like to sell products for companies. I do not want to hold position of the products. I'd like to make the order, pay the company, pick up the product, and deliver to my buyer. The idea is to lower my cost. Will this work?
I think Larry gave you a good answer. Think about becoming a Manufacturer's Rep. I did that for over 20 years and you just hook up with a number of manufacturers and sell their products on a commission basis. Most have no inventory and just need to sell and collect the commission check. You could visit the website of MANA "Manufacturer's Agents National Association" and learn a bit more. It will be a little difficult to start in with no industry connections but you might think about finding an interesting field and working for a Rep for a year or two which would let you make some connections and pick up some industry specific knowledge.
I appreciate all the information by all. I just received very good advice. This is very helpful.
Yes, this will work for you in the initial phase when you are not too occupied. However, when you will get busy with more customers you may not able to do this on routine. The you need to stock some inventory at your end.
Please check this option for future.
Mustafa- Agree with the comments written below (e.g. drop ship scenario). A little off topic but: Back in the day what worked better was what was called Manufacturer's Rep. It still exists in some form today as a 1099 employee but again you are loosely working for the actual OEM not the distributor. And they typically commissioned with either a percent of your sales or percent of gross margin. You add more value this way. But you are expected to attend certain trainings, follow certain guidelines, and represent the company as if you were a actual employee. Maybe consider that approach as you do not hold any product.
It can work as a business model and the success depends on what the value is that you are offering to your customer and what is the perceived value to them that you are offering. Service without perceived value is difficult to scale. For example, focusing on being the least cost of goods producer, or offering a service that no one else offers or can do to your level is largely the value that you offer.
If you are researching companies for products to sell you can google the distributors that are available that carry the products you are interested in. The Sales Dept of every distributor is always looking for new customers therefore call, make an appointment to review their product line, pick-up product brochures, check out their pricing levels and terms, and then turn this information to your buyer. The reverse would be the case if you were the one buying products for use in your operation (manufacturing or resale). I was involved in manufacturing and the PA I replace advised me to keep an open mind by making time available for new vendors of products you use. He advised me that by keeping an open mind; you are making your self available for a new resource supplying items you use (possibly better quality or a better price).
Mustafa - It depends. What you are saying here is basically what drop-shippers do. But I must tell you that this is a volume game. If you are not able to get sufficient orders, you will not be able to get the price and those who are able to sell in volumes will get better price. For electronics, computing and software, this is a dead market.
Mustafa: The most common business models for what you are suggesting is to either act as an affiliate marketer or as an arbitrageur. As an affiliate marketer you are providing marketing services and the company with whom you are an affiliate is doing all fulfillments. You typically get a rev. share on the order amount. In a retail setting this is typically less than 15%; in the services/software market this could be as high as 50%. As an arbitrageur, you are doing the marketing and sales activities, collecting orders for products with enough lead time that you can source/fulfill the order at a price significantly below what you are selling the products for (i.e. you are keeping the spread between the sales price and the fulfillment price). An arbitrageur can use a combination of drop shipping (as Daniel indicated) and inventory purchase/repackaging/fulfillment. Basically as the arbitrageur, you are doing all functions of the business except holding inventory until AFTER the sale or in the case of drop shipping -- never holding inventory.
It sounds like "dropshipping" to me which does indeed work. I found this article very helpful: https://www.shopify.com/guides/dropshipping