What is the difference between Distributor and Dealer? - ProProfs Discuss
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What is the difference between Distributor and Dealer?

Asked by Demi , Last updated: Mar 19, 2022

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2 Answers

D. Smith

D. Smith

Learning new things along with my music

D. Smith
D. Smith, Musician, MA, Nottingham

Answered Jul 09, 2020

There are a lot of people who feel that dealers and distributors are the same because these terms are often used interchangeably. The truth is that there is still a difference between the two. When you say distributor, this means that this is someone who would be selling to all of the dealers that are available.

The main difference between this and the distributors is that the distributors will be in charge of selling to different retailers. There is also the time when the distributors will be in charge of selling to the various consumers. A lot of dealers and distributors usually partner with each other in order to make more money.

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M. Krasinski

M. Krasinski

M. Krasinski
M. Krasinski, Content Writer, Columbus

Answered Jul 08, 2020

A dealer is someone that buys from the distributor or producer and sale to a retailer or direct consumer, while a distributor is someone that is hired to sell goods on behalf of the manufacturer to the dealer or retailer.

A dealer buys in bulk and puts a certain percentage of income on the goods to get his or her profit, while the distributor sells the goods at the company price to gain customers for the producer.

A distributor is a monopoly seller because he or she is the only person authorized to sell in that particular area while a dealer can compete with many sellers because they are not authorized sellers they only sell to gain profit. A dealer can add different brands of products to what he or she sells while the distributor sells one product.

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