Authorized Reseller(what is an Authorized Reseller? )
Author: Jezriel
What is an authorized reseller? An authorized reseller is a person or business entity that makes bulk purchases of products from manufacturing companies and then resells these products again to the consumers...
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What is an Authorized Reseller?[/caption]Authorized resellers earn profit in this kind of business set-up since they get discounted prices from manufacturers in wholesale buying and subsequently have the pleasure of determining much higher prices in reselling the products. In other words, whatever amount that exceeds the manufacturer's price is the reseller's financial gain.
A reseller is authorized if there is a formal business agreement between the reseller and the manufacturing company. What is meant by business agreement is the manufacturing company's acknowledgment that bulks of its products will be bought and resold by the reseller. Inside this same agreement is a set of privileges, benefits and other corporate assistance that the manufacturer will provide to its authorized reseller throughout the course of their business contract.
Authorized reseller vs. Authorized agent. It is important to point out though that an authorized reseller is different from an authorized agent. An authorized reseller completely owns the products once the purchase is done, and as mentioned, the reseller has the freedom to decide the selling price of the products. An authorized agent on the other hand does not own the products to be sold, as these still belong to the manufacturing company. An agent basically relies on the prices quoted by the manufacturer, and earns profit through hitting the target sales quotas and getting sales commissions.
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