Meaning Of Dealership In English

It isn’t unusual for robust distributors and dealers to hold the goods of competing producers, though, in most cases, one of the brands shall be dominant, the other serving a smaller customer base. Both distributors and dealers truly purchase the products they promote—the distributor from the manufacturer, the dealer from the distributor. Distributors maintain components inventories and the dealers present service functions to the ultimate customers (“servicing dealers”). Relationships amongst manufacturers, distributors, and dealers are sometimes contractual in nature.

Distributors pay wholesale prices for the product and then distribute to dealers who pay dealer value. Distributor and dealer relationships to producers have many features in common with franchises. Indeed, state laws governing franchises might have clauses that instantly relate to distributors and dealers. But the franchise concept is essentially completely different from the distributor-dealer mannequin.

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