South Florida Business Daily

How does the distribution (selling to retailers) work?

Hi, I am about to start a distribution company. The only thing i need to know is how to sell the products to the retailers. Should i just bring the product and then sell it or should I ask for 50% of the money in advance and then order it? I dont want to buy to much or to little. Thanks for helping!!

Public Comments

1. My boss (at a toy store) will get catalogs or meet with a sales representative and then she decides what she wants and how many, and then orders. I'm not sure how paying works, though. Good luck!
2. The first thing to do is to talk to retailers -- lots of them, as they will be your customers. Find out what they want, but are not getting from their present distributors. Distributors normally get paid on invoice or (more frequently) monthly statement, so you need to pay some attention to your customers' creditworthiness. You will need significant working capital to carry your inventory.
3. I would answer this question, but each time I answer I get a Yahoo Terms of Service Violation for seriously no reason.