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Representing and reselling has grown rapidly over the past 25 years and is now considered one of the most effective methods of growth for successful businesses wishing to expand. Our eResellers.Club Program permits multiple units to be opened simultaneously, gaining the Resellers an advantage over competitors.
A Reseller is not confined to its own capital resources and employees, and can therefore expand more quickly than centralized enterprises. In this way, it can seize market share and rapidly become a dominant player in a new or even an established market.
Some advantages include:
We all win. Resellers assist the Seller by investing their own motivation and capital. Overall operating costs (especially advertising and marketing) are divided by the Resellers. The Reseller in turn can contract or accept other sub-Resellers.
Greater buying power. Sellers purchasing products and services for their entire seller network can often negotiate volume discounts from vendors and suppliers. This provides higher operating margins to Resellers and a competitive advantage over similar businesses. For example, a seller can purchase supplies (like hamburger) and services (like advertising) in bulk, threatening to place its large orders elsewhere if it does not get the best price. These discounts, which neither the seller nor its Resellers could get on their own, are then enjoyed by both seller and Resellers.
Greater name recognition. As additional units are opened, name recognition usually increases. This increases the value of the business to both the company and its Resellers.
New revenue streams are created. Frequently, a seller produces substantial revenues in relationship to the services performed for the Resellers. Sellers may earn income from the seller operation(s) from all or some of the following revenue streams:
Research and Development. seller fees and royalties can supply capital for R&D that the seller could not afford as a stand-alone company, permitting it to improve its products and services.
Minimum financial risk for the seller. Many established national and international companies have chosen to operate under a reseller system due to the simple fact that reselling provides the opportunity for maximum growth and market penetration with minimum financial risk to the seller.
The seller has firm control over the seller branches. A reseller system permits the seller to maintain strict controls over individual seller locations, protecting the reputation and system of the seller.
Resellers are responsible for all aspects of his or her location. The reseller is personally responsible for all aspects of his or her reseller location, including capitalization, day-to-day operations and personnel.
Lower cost in comparison to internal expansion. reselling offers the seller tremendous advantages over the high capital costs associated with internal expansion as well as the infrastructure and employee training demands that accompany internal expansion.
No need to search for a qualified work team. The problems associated with recruiting, training, managing and retaining a qualified work force, as well as the responsibilities for the day-to-day operations of individual locations, are virtually eliminated under a rereseller system.
Shared costs for larger savings. Additional benefits of reselling include significant cost savings that can be achieved by the seller and Resellers from volume purchasing, and shared advertising and marketing expenses.
Resellers are motivated for success. Companies who choose reselling as their method of expansion benefit from the Resellers’ being business owners rather than company employees. With their own savings at risk and standing to gain from any success, the Resellers are more motivated than employees to make the business succeed, which solves the problem of hiring qualified and motivated employees when expanding company operations.
Resellers seek to purchase seller to minimize risk. Each year, thousands of would-be entrepreneurs choose to purchase a seller, rather than start a business on their own to minimize their risks by purchasing a system of operation that has proven to be successful.
Resellers benefit from the seller’s expertise. Resellers benefit from the seller’s experience and expertise, as well as from the operational support and training the seller provides.
Resellers are responsible for day-to-day operations. In establishing a seller operation, Resellers, rather than employees of the company, are responsible for the day-to-day operations at their locations.
The seller can focus on overall business development. This frees the seller to focus on overall business development, including operational processes and procedures, product or service research and development, advertising and marketing.