How does Distributorship & Franchise works ? How we make money from it ?

POSTED BY abhishek6666 ON October 20, 2013 1:32 pm COMMENTS (6)

How Does Distributorship works And How Does Distributors Earn…..Can He Make The Price Of Of Goods According To His Profit?????

And One Main Difference between Distributorship And Franchise? Manish ji Please Guide Me And I Request U To Write A Article On It

Regards

Abhishek

6 replies on this article “How does Distributorship & Franchise works ? How we make money from it ?”

  1. ashalanshu says:

    Dear Abhishek, yes you can have that much margin.

    Thanks

    Ashal

  2. abhishek6666 says:

    can a distributor have margin of 30 to 33 %

  3. abhishek6666 says:

    No.Sir Actually I was planning to buy a some kind of machine…i met some people online who were manufacturers of the machines and also some people who already had bought the machine and also had banneer that contact them to buy machine..i went there askd them about machine difference between manufacturer price and his price was very much like about 30 to 40 %……..and he said thats he was distributor of that company but i didnt told him that i conatcted the company also personally……from that i came to know about differences between price……i met three four people who were seeling machines i was suprised that they were charging so much ..

    Like From One Person i asked he said the machine is for 6,50,000
    second person said the machine is for 7,50,000

    Means i know both persons were having different machines from different manufacturers and have diff price like diff of 1L but the point which struck in my mind and curious to know was that they dnt have any mrp like market price…..he said me that rate can be more also its just saying u approximately…..and from source i am came to know about the manufacturer of the machine and contacted him the price form him was 5,20,000 compared to second buyer which states price as 7,50,000 and address himself from distributor of that company….
    thats y sir postd a question to get all ur exert view…….

    Now I am going to take machine and the manufacturer from whom i am buying is saying me the if i want distributorship he can provide me with it….
    i am came here to take advice from u that which clauses shuld i see in agreements ……which documents shuld i ask from him ……etc….before getting into anything i want expert view of all urs..

    Regards
    Abhishek

  4. abhishek6666 says:

    actually sir some days ago..i was planning to buy a kind of machine ….i met some people online who were manufacturers of the machines and also some people who already had bought the machine and also had banneer that contact them to buy machine..i went there askd them about machine difference between manufacturer price and his price was very much like about 30 to 40 %……..and he said thats he was distributor of that company but i didnt told him that i conatcted the company also personally……from that i came to know about differences between prices and from thats i am curious to know what disributorship is ………….how a distributor earn can he raise price so much or they earn by some different method…………….
    And Also Please help me about whats the difference between franchise and distrubutorship

    Regards
    Abhishek

    1. Abhishek

      Its very clear . Distributorship is nothing but a business where you get bulk materical at lower price and sell it on your own . Simple . There is nothing different than any other business .

      For example – Maruti Distributorship – They get car at lower price and sell at marketprice and earn the difference profit ,like if market price for a car is 3 lacs, distributor would get it at 2.6 lacs and make a profit of 40k on a car by selling it .

      Whats your purpose for asking the question ? Do you want to take distributorship for starting a business ?

      Manish

  5. ashalanshu says:

    Dear Abhishek, how your query is related to personal finance? Can you elaborate?

    thanks

    Ashal

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