Major household appliances include stoves, refrigerators, freezers, washers and dryers. When household appliances break down, the owners usually contact a distributor of their branded appliance to have it repaired. Only distributors of branded appliance parts like Maytag parts, refrigerator parts, washer parts, or stove parts may have the replacement part needed to make the household appliance work properly.
Branded appliance manufacturers sell their brands of products through a network of qualified, trained and highly skilled distributors. Manufacturers usually distribute their products to reach the customers through industrial distributors, where the distributor purchases products directly from the manufacturer, and a specific minimum amount is required for annual purchases, and from dealers that purchase through wholesale distributors authorized to sell to dealers at the resale price provided by the manufacturers.
To become a distributor of branded appliance parts, you need to do the following:
1. Decide on the branded appliances parts you want to distribute. Choose branded appliances that are convenient, useful, cost effective, and belong in a majority of households.
2. Look for an excellent marketplace to set up your distributorship.
3. Go to the manufacturer's website of the branded appliances parts you want to distribute and inquire about their wholesale rates and practices. Your options to inquire may be to:
- Access the Application Form provided for distributors that you will complete and fax or email to a number provided.
- Send an email with your inquiries to the email address given.
- Simply fill out and submit online a provided form for distributors.
- Sign-in and register as an interested distributor.
- Contact the company through a Distributor's Contact Form or contact number.
4. Compare the retail rates, overhead expenses and shipping costs you may incur. Determine which branded appliance parts have the highest potential to generate profits in your target marketplace.
5. Find out if the manufacturer of the branded appliances invests in consumer research, advertising and other sales drivers that can help in your distributorship. Your supplier should have completed intensive customer research before the appliances were released to the market.
6. Prepare a comprehensive business plan that details your plans for your business.
- Decide on the specific branded appliance parts you plan to carry.
- Estimate the volume of merchandise you anticipate to move.
- Target whom you will be able to distribute the products to.
- Project detailed costs, fixed, variable and out of pocket expenses.
- Anticipate the size of the staff to be hired and cost of hiring.
- Make profit projections.
7. Put up the start-up capital needed to launch a distributor business. Either get a business loan from a bank or get private investors to set-up your company.
8. Study your competitors' business and your target market. Most successful companies know what their competitors are doing and always try to do better.
9. Set realistic expectations for your first months in operation, and build your presence through basic advertising.
Make a study of how successful and profitable your business has been. If for example you decided to distribute in the Houston area, you may want to concentrate on moving Maytag parts, refrigerator parts, and washer parts, stove parts, and dryer parts for dryer repairs. Study your market, including the performance of store dealers and other distributors in the area.
Build and grow your distribution business to become profitable. Plan some cost-cutting measures that can generate more profits. Establish ways to gain a bigger market share and stand out among the competition by offering better service at lower prices.