What is the advantages and disadvantages to become a sole distributor?

Question

What is the advantages and disadvantages to become a sole distributor?

Answer 1

The advantage is that you get a monopoly for the product in question.  Hence the market is more or less exclusive to you.  Whether you make a lot of money or not it actually depends on your agreement with the Principals.

The disadvantage is probably the fact that you have to act also as a stockist.  Hence your inventory will be higher since you need to ensure steady supply of the product in question.  Your Principals will not want to see a break in the market supply so that competitors can come in to fill the gap.

Answer 2

Advantages - u could earn more money.

Disadvantages - u will be busy the whole day long..

There is a lot of advantages and disadvantages it really depends on which way u think or want .. So let mi / us know more abt the stock u doing or others? We could hlp u if u do so. cheers

Answer 3

Advantages:  You get to earn all the money on that product in question; just make sure ur agreement with the manufacturer is solid, meaing, u r indeed the sole distributor of the country or region as stipulated in the contract.  Also, u have to be sure the product in question has a potential market in the country or region u will be operating.

Disadvantage:  You need to have plenty of cash to be a sole distributor.  as in plenty, to start with.

Answer 4

yes