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Also, the concept of "vendor" is used to designate a single-standing machine for the sale of small products (chipses, chocolates) and beverages, which usually sets out on the street or in public premises.
What is vendor? Definition and description of the term
Vendor (VENDOR, VERDER) - the supplier (often, the manufacturer) of goods and services under its brand name. Vendor is a company that produces, supplies products under its own promoted brand.
Concepts of vendor
The concept of vendor comes from the Latin "Vendere" - to sell. Initially, the concept of vendor determined the seller, a merchant, a distributor that sells goods from a tray or into a separation.
Vendor in terms of marketing. The vendor occupies an upper step in the marketing channel, in modern trade: manufacturer - Vendor - Distributor - Dealer - buyer. Vendors are not always manufacturers of goods and services. Key in the activities of vendor - possession of the brand and management of the promotion and distribution of goods and services. From the point of view of marketing, the vendor always assumes responsibility for the promotion and support of the goods in the market. The distribution provides the distribution of vendor products, the timely replenishment of the drain, implements the vendor marketing programs and leads to work with partners, providing trade marketing of vendor goods.
Most often, vendors are referred to in the segment of goods of everyday demand, in financial markets, in logistics, in the information technology segment - the supply of IT solutions, computer components and software.
In the VENDOR banking sector - a company offering technical and technological services for the release and maintenance of bank cards.
In IT-sphere vendor - The supplier of a plated goods included by the system integrator, as a complete, or part in the final IT solution for the subsequent sale to the buyer.
On the Software Market Independent Software Vendor - Web Development Company and Program Supplier for Specialized (Niche) Markets: Software for hardware-software automated production systems, warehouse maintenance, realtors, barcode reading and TP.
In B2B-sphere Wedor's concept - This is a wide marketing category used to describe the relationship between partners in closely integrated complexes of production and sales of complex technical goods.
In Lysing Vendor According to the leasing contract, sells equipment to the sales branches of vendor, distributors. The latter gives it to rent or sell buyers in installments.
Vending business (Vending) - sale, lease of vending machines, vending apparatus, organization of trade through vending machines.
Vendor - Reseller: Feature
Immediately we decide that the vendor gives us the right to sell their software products to third parties (end users). From the point of view of Russian legislation, we should talk about the licensing contract, which provides for all possible ways to use the reseller, as well as the right to conclude contracts with end users.
So judicial practice speaks of this:
"... The conclusion of the license agreement is a prerequisite for all users of software of any vendors, the legal aspects of which are reflected in the legislation of the Russian Federation (Civil Code of the Russian Federation, part 4, ch. 69, Art. 1235-1240)" (see Read more Case number A65-3927 / 2015 dated 09.28.2015. 11th AAS).
"... The essence of licensing is not to acquire the computer programs themselves in a boxed or electronic form, but in the purchase of a license - a special document that gives its owner to the use of the results of intellectual activity under the agreement with the copyright holder (by the developer). License (the same - license agreement) is the basis of the relationship between the user and the copyright holder. The conclusion of the license agreement is a prerequisite for all users of software of any vendors, the legal aspects of which are reflected in the legislation of the Russian Federation (Civil Code of the Russian Federation, part 4, ch. 69, Art. 1235-1240) "(see Read more Decision of 30.06. 2015 in case number A65-3927 / 2015).
In practice (especially when interacting with foreign vendors), it is impossible to determine the legal nature of the contracts. The first, vendors, as a rule, want to conclude agreements with end users themselves. Secondly, they give the rights to sell software, but prohibit sub-licensive contracts.
It may look, for example, so:
The distributor undertakes to advertise, promote and sell the software and services of the company directly or through its distribution network to end users.
Distributor cannot act as a sublicenziar company In this case, the contract can be interpreted as agency or the service agreement (or a mixed contract) depending on the context.
What does this mean for the reseller?
To conclude a sub-license-on contract with the end user is impossible. According to the norms of the Civil Code of the Russian Federation, it is impossible to transfer more rights to intellectual property objects than you have. And in such a design there are no rights at the reseller. NES (or rather, its absence). The attractiveness of a licensed (sub-license) agreement is largely in the absence of VAT. But if you have not had the right to conclude such an agreement, then you do not have the right to benefit from VAT. This must be considered.
According to PP. 26 p. 2 art. 149 of the Tax Code of the Russian Federation, the value-added tax exempt operations on the transfer of exceptional rights to inventions, useful models, industrial designs, programs for electronic computing machines, databases, the topology of integrated circuits, the secrets of production (know-how), as well as transmission operations rights to use these results of intellectual activity on the basis of a license agreement. In this regard, the exemption from taxation of the value added value of the transfer of rights to the use of software applies only in the presence of a license agreement.
In the case when a mixed contract containing elements of the license, no inclusion on VAT is not provided. The court, and the Ministry of Finance (see, for example, a letter of the Ministry of Finance No. 03-07-07 / 66 dated 107.10.2010).
But what in such cases is the court:
"... only the right holder can manage the exceptional rights to the result of intellectual activity, and therefore the intermediary organization has the right to distribute the software product, but does not have the right to use it in other ways, that is, is not the owner of those rights that conveys under a sub-license agreement, Consequently, intermediary organization can not conclude sub-licensive contracts with each other and with end users and release such operations from VAT "(see Read more Decision on Case No. A74-3204 / 2009 from 09/22/2009. As of the Republic of Khakassia).
Reseller - End User
It is clear that the reseller bows the treaty of vendor, so any amateurness in this matter is risky. If the vendor prohibits transmitting sublicenzia, then nothing remains except to enter into:
- delivery contract (but it applies to boxed products);
- Service Agreement (technical support, support when connected to software);
- Agency agreement (interaction with vendor).
In all these cases, the benefit for exemption from VAT cannot be used. The conclusion of a sub-license agreement Contrary to the prohibition of vendor is dangerous and for the end user. After all, he can also become an object of checks of tax authorities or vendor claims (in fact, the use of the product can be found illegal if the reseller has no rights to transfer the license). Therefore, the end user (basically we are talking about organizations) should be a product chain of the product and make sure the legitimacy of the contract concluded. For example, in one of the cases, the court drew attention to the following shortcomings in the documents (see Read more Decision on Case No. A74-3204 / 2009 from 09/22/2009. As of the Republic of Khakassia):
Contracts do not contain details of documents certifying the exclusive rights of the licenseer for software.
Contracts do not contain in the section "Subject of the Contract" information about the name, form and the number of non-exclusive rights to the software transmitted. In this regard, the acts of acceptance and transmission acts submitted by the applicant does not have the ability to relate with licensed (sub-licensive) agreements, since the texts of acts do not contain information that they are applications to these agreements.
The lack of such information does not allow to track the implementation of non-exclusive rights to specific types and the amount of software at the specified contracts.
We briefly reviewed the concept of vendor, his history of appearance. Leave your comments or add-ons to the material.
This word can be heard often, but it is not always clear its meaning. Such firms play an important role in the economy and would like to understand what functions they perform and how their work is organized.
1. What do vendors do
Many years ago, vendors called street merchants who went through the streets and offered their goods to passersby. Now, in most cases, this term denote world-famous companies.
There are various types of firms in the market that participate in different ways in the industry. They can be divided as follows:
- Manufacturers (Wenders). Almost they simply create a product under their own brand. Although they are engaged in its sales, but this activity is not in the first place.
- Sales are mainly distributors. They implement produce products produced by vendors. It can be intermediaries (dealers) or those who use their products to produce their own products.
- Dealers sell goods to end users.
Such a three-step chain allows you to most effectively sell produced goods. This scheme allows you to focus on performing your tasks. The manufacturer enables high-quality goods to the market, and distributors and dealers are engaged in its sales.
2. Different areas of work of vendors
If you buy the goods from them, then its cost will be minimal. The problem for buyers is that usually manufacturers avoid engaging retailers or sell small-winding parties. In this case, for one or small number of large-scale transactions, they receive significant profits. Therefore, they are interested in working with distributors. To interest them, they provide a discount. Wenders carry out marketing promotion of the goods and create the necessary support for it.
They buy large batch products at a lower price. Distributors have warehouses for storage. They are also not interested in retail sale. Such firms it is important to find small-winding buyers who will deal with the sale of end users. Typically, the discount value that distributors use is not more than 5%.
These firms sell goods purchased by small-winding buses. They have no financial opportunities to work with large batchs of goods, but they can effectively sell products. In order for them to interest distributors, they are inferior to them as part of the discount, the goods are sold at the cost price, and the difference becomes the profit of such firms.
2.3. Features of the concept of vendor in various fields
This term is a tracker with the English word "Vendor". We are talking about a supplier of goods or components. The company does it under his own brand. In various situations, there is a well-established idea of those who belong to this word.
This type of business is called Landing. In this area, the vendor is a supplier of these mechanisms. Sometimes the same term is called the supplied vending machine. Once upon a time, the vendor was called a street trader-lotchik. In a sense, its function is similar to those that perform a vending machine.
Leasing service is needed to those who do not have the financial ability to purchase equipment necessary for work. In the commission of such transactions there are such parties:
- He who produces such equipment.
- A firm that is looking for customers and provides them with a technique.
- The company taking equipment in leasing.
The firm that provides the services under consideration often works with manufacturers, and not with intermediaries. It is convenient, because in this case it is provided more favorable conditions. Vendor in such a situation is the manufacturer of the equipment.
By providing products through leasing, it receives another sales channel. The lessee will receive more appropriate conditions.
Vendors in this area are widely known. This, for example, Microsoft and many others. So called those who produce operating systems, solutions or individual applications. Modern software is a complex and high-tech product, but not only large companies, but also small firms, as well as individuals can achieve success in this area.
There is also the term "independent vendor". In this case, we are talking about manufacturers working at highly specialized software markets. For example, such is the accounting software market for warehouse management or others.
2.6. Scope of creating hardware components for a computer
The computer is a complex system that includes a large number of nodes and parts. Almost every one creates individual manufacturers. Then they create a computer and sell it. In this case, vendors are manufacturers of individual nodes. An example in this case is NVIDIA, which manufactures graphics cards.
The banking sector has its own traditional understanding of what Vendor is. So called firms that produce bank cards and create everything you need to use. Examples of such companies are Visa and Mastercard.
Here the concept of vendor differs from the generally accepted. In this case, the company that directly sells the goods to the final consumer, although it is usually attributed to this category. This is unconventional use of the term, but it sometimes meets.
3. How to work vendors
Since the vendor is the owner of his brand, he has the right to provide its use of the company that fulfilled the conditions. In this case, vendors call both such companies - the master of the brand and the one that received it in temporary use.
For example, ARM processors that are widely used in the production of smartphones make several firms. They signed the appropriate agreement with the brand owner and fulfill its conditions. So far there are such relationships, these firms are considered as vendors with the specified brand.
Independent vendors usually become such as they are owners of unique technology. The fact that they focus on a small area of activity makes it possible to create a quality product. In some cases, even major suppliers may be interested in collaboration with them in order to use the specified advantage.
Sometimes the vendor simultaneously uses several brands. In this case, it is called vendor only for those of which he is their owner.
The main purpose of the vendor is the most mass production of products with minimal cost. How to sell it, they will deal with distributors and dealers who have appropriate premises, trained personnel and other resources.
There is often a situation where the major vendor has in its part of the division that marketing and trade. Although this is usually not his specialty, nevertheless such activities are beneficial. However, the manufacturer does it usually in a very limited scale. In this case, the seller receives products at a relatively low price, which increases the profit of such an enterprise. On the other hand, the dealer and the final consumer is more profitable to buy products from the manufacturer, since the price and terms of delivery will be better in this case.
6. The price of vendor products
Although manufacturers benefit from selling their products as soon as possible, additional factors can influence the price conditions. Vendor usually manages marketing policies for its products. Since the price is an important part, sometimes additional conditions can be installed for it:
- The vendor in the sale agreement can establish the recommended retail price. When buying a product about its existence, you can find out by visiting the manufacturer's site. In the retail network, the goods must be sold at this price. If it is more expensive, it makes sense to find out this question from the manufacturer.
- Sometimes the minimum retail price can be installed. In this case, distributors and dealers are forbidden to sell at a lower price. It is also necessary to ensure that in the open house prices with violation of this condition are not published. Recommended prices may be important if there is a competition between different types of products of one manufacturer. In this case, accurately established prices will help make sales more efficient.
- Adjustment may be subject to non-retail, but dealer price. It is set by a distributor for dealers. Thus, the vendor can affect the distribution of the discount provided between large-headed and small-winding buyers. Thus, the vendor can also affect the conditions. Offered by various dealers.
When determining the value of the final price, the type of the final buyer is taken into account. In some cases, detailed prices can be drawn up with the appropriate prices for each of them.Conclusion
The modern market has a complex structure. Firms differ in both the types of services and goods and its functions they are implemented in the economic system. Vendors are those who produce goods and engaged in their marketing promotion. However, their effectiveness significantly depends on the ability to properly organize work with distributors and dealers.
January 5, 2021.
Hello, dear blog readers KtonanovenKogo.ru. The modern dictionary includes many words, the exact values of which from high-social terms gradually turns into commonly used.
For example, the word "vendor". Who can be called vendor, and why did this term be often found in marketing and in business in general?
Vendor is ...
The word "vendor" came to us as a carting from English, and has several values: the seller, supplier of goods or services , merchant. More accurate value, the word can be translated as:
Vendor is a company producing and / or supplying goods and services Under your own brand .
Examples of vendors: "KAMAZ", "ROT-FRONT", "SAMSUNG".
Vendor and Marketing
The vendor can implement the goods to the end consumer, organizations or individuals, but can work with an enterprise buying goods for subsequent inclusions in the production process with its participation.
The vendor does not have to make fully all products that customers supplies. Main in his activities , This is a brand possession, its promotion, and the distribution of finished products.
The concept of "vendor" is more often used in order to more accurately describe the relationship between partners within the integrated complexes for the production and sale of technical goods of increased complexity, but gradually applies to other spheres.
In general Chain supplies Goods or services looks like this:
Manufacturer → Vendor, owning a trademark → Distributor (who is it?) → Dealer (who is it?) → End buyer.
The dealer may be absent in the chain, and the manufacturer and vendor can be the same face.
Hence, Vendor is a company who owns a trademark for products that supplies, and carrying out the so-called Vendon support for distributors of its products.
Often, the vendor is specifically trying to close as much as possible market share. This can create additional difficulties when changing the supplier, as the costs when switching to other brand products may be too large.
Features of the concept of "vendor" in different business areas
The word "vendor" is new, and in each industry has its own specifics.
In the banking sector
Vendor provides banks everything technically and technologically necessary for the release of plastic cards, and for their further maintenance.
In the IT sphere
He supplies components under its brand of the company, including them in the final product, and that is already implemented by the consumer.
Develops and delivers for mass or highly specialized areas. Everyone knows such vendors as: Microsoft, Oracle, IBM, supplying IT solutions to world markets.
There is a separate concept - Independent Vendor Pot , ISV, Independent Software Vendor. So called companies that create or sell IT products in niche markets. Such markets are distinguished by a variety, for example, by (what is it?) To maintain a warehouse, or for compiling complex schedules, or for barcode readings.
Niche products provide an end user with higher performance than high-quality, but generalized software, for example, databases in the office package.
Vendor supplies a technique or equipment to distributors, and they are already engaged in transferring it to leasing (what is it?).
So called the organization Sales through vending machines . In this sphere, the vendor is the one who supplies such machines, but often, and this is also logically correct, the term vendor acquires the second meaning: so called the vending machine itself (vending devices).
Thus, the vendor is a multifaceted concept that has been successfully used in business communication. Replacing its similar terms of the Russian language, such as a manufacturer or supplier, already It became inappropriate .
Good luck to you! Seeing fast meetings on the pages of KtonanovenKogo.ru
In modern trade, the vendor occupies an upper step. This term applies to large companies that develop their own products or technologies. In the article, we will tell you what vendors are how they work.
Who is a vendor
Vendor is a physical or legal person who produces and / or supplies goods under its own brand. The vendor may not produce products independently, its main task is to promote the goods and its distribution.
Vendors work both with end users, and with distributors (mediator between the manufacturer and reseller) and resellers (directly interacts with the buyer).
Independent vendors are small organizations that offer copyright technology. Products for a narrow type of activity may have high, in comparison with world brands quality.
Characteristics of a vendor company
Vendan company can:
produce products under their own brand or licensed to use technologies;
track the promotion of goods or services;
engage in product promotion;
Answer quality and demand on the brand.
In each industry, they make their requirements - it depends on the specifics of the market segment.
Advantages of vendor companies
With an organization that has its own developments and established production, it is more profitable to cooperate than with a dealer. Vendrans enterprises acquire unique products at discounted prices. Manufacturers are followed by the quality of the brand, constantly improving it.
If the goods purchased from the producer turned out to be poor quality, the issue with repair or replacement will decide quickly. In the case of the dealer, this process will delay. Therefore, the demand for vending organizations is growing.
The main principle of the work of vendors is the production and promotion of products under its brand. The trademark name usually serves as a brand name. It happens that Vendor releases goods under several brands, but necessarily with the right of ownership. Otherwise, the manufacturer will be more difficult to track the quality and promotion of products. The vendor tries to realize their products on the market as soon as possible. Sustained mass markets provide distributors.
Relations with reseller
After the distributor, the goods fall to the reseller. He sells it to the final consumer. Between it and the manufacturer concludes an agreement on the consent of the distribution of products and the ability to issue contracts with buyers. The classic business scheme looks like this: the vendor sells the author's development distributor, and he is a reseller.
Resellers are sometimes called dealers and distributors, as they resell certain products of some organizations to others. They can also participate in the sales chain from Vendor to the buyer.
Examples of vendors in modern trade
In each business sector, the work of vendors has its own characteristics.
In the marketing environment, the vendor is not necessarily the manufacturer. In his duties included Promotion and selling brand on the market. He is also responsible for compliance with the brand of the specified standards.
In the banking sector, vendor produces equipment and technologies for the release and maintenance of bank cards. This may be a subsidiary of the Bank or another organization with which the contract concludes.
In the world of information technologies, vendors are copyright providers. Vendor managers (direct representatives of the company) help automate business: introduce software in production, CRM systems and databases.
Vendor delivers equipment to sales branches or distributors. They lease him according to the leasing contract.
In this market, vendors are developing and delivered by (software) for mass or niche segments. Popular World Market Vendors: Microsoft, Oracle, IBM.
End consumers benefit from the niche product - its performance is higher than that of high-quality, but generalized software. For example: databases in the office package.
These are partnerships of manufacturers companies in the combined complexes of production and sales of technical goods.
Price of vendor products
Vendors sell goods to distributors at reduced cost and allow them to resell their dealers at a special price. There are several categories of prices for producer products:
Retail price. It is in open access on the official website of Vendor.
Minimum retail cost. This is the bottom threshold installed by the manufacturer. Distributors and dealers cannot sell goods cheaper than this plank and publish the price below.
Dealer price. For it, dealers acquire products from distributors or at the vendors themselves. The data is published in the price list of distributors or in closed partnership sections with limited access. Discount for dealers is determined by the volume of purchases, their reputation.
Design discount. Sometimes vendors Do discount Designers who integrate their equipment into their projects. In this case, they receive the dealership, and the project discount. The bonus also acts when the realization does not do the designer itself, but a different structure on its project.
The price is affected by the final consumer. For some customers there are additional bonuses.
Pros and cons cooperation
Cooperating with Vendor, the reseller receives a number of advantages:
Such companies favorably do regular wholesale purchases. On retail sale listed advantages do not apply, and it is difficult to get a discount. The vendor is trying to close the most important part of the market. Dealers and end users can incur losses when changing the supplier.