Difference between Distributer and Dealer

Do you want to know what the difference between distributer and dealer is? You are on the right spot to know the answer of this question.

In the world of business, that is, the sale of goods and services; customers rarely buy what they want or need directly from the person who produces or owns it. You may visit business studies notes as well to learn more about such business terms.

Anyhow, below this post is all about distributer and a dealer. What usually happens is that you turn to something or someone else that serves as a bridge between client and producer.

In this sense we have dealers and distributors, which seem to be the same; but it has some differences.

Difference between Distributer and Dealer

If you have doubts about it, continue reading, because then we will explain the difference between distributor and dealer.

What is Distributor

A distributor is an entity that purchases products (not to compete with each other) or product lines, which are stocked and resold directly to vendors or dealers.

One of the functions of the distributor may be to provide the manufacturer with strong labor and capital for the promotion of the products. In addition, they are responsible for offering other services such as: product information, technical support and credit services.

Distributors generally supply goods directly to stores or other businesses that resell them to customers. They are intermediaries between producers and dealers. They distribute the products through different channels, which are interdependent organizations.

What is Dealer

On the other hand, a dealer can be an individual or a firm that buys specific goods from a producer or distributor to sell them.

Each dealer focuses on certain types of products in particular, they can be vehicles, works of art, antiques (car dealers, art dealers…).

The dealer is the one who always has the responsibility to sell the product. Therefore, he has a direct relationship with the client(s).