Definitions and Synonyms
Synonyms for ‘dealership’ are ‘dealer’, ‘concessionaire’, and ‘concession holder’. A ‘distributor’ refers to a person or organization that distributes products to retailers or customers. A ‘franchise’ means an authorization given to a group or individual to carry out commercial activities using a particular company’s branding. ‘Reseller’ refers to a person or business that buys products in large quantities and then resells them to retailers or customers.
The Role of Dealers
A dealer buys and sells goods for profit, acting between manufacturers and customers. They facilitate trading and distribution. Car dealers sell new and used vehicles and often provide maintenance services. Dealers get designated areas to sell from manufacturers, leading to competition. They make a profit from buying at wholesale prices and selling at retail prices while taking on the financial risk of buying inventory.
Brokers and Broker-Dealers
Brokers connect buyers and sellers for a commission without taking ownership of the goods. Broker-dealers do both and range from small independent firms to big bank subsidiaries. Full-service brokers provide more than just trade execution, such as research and planning aid. Mortgage brokers find loans for clients, manage applications, and may get compensated through flat fees regardless of the loan.
Specialized Dealers
Dealers often specialize in particular fields, such as furniture or antiques. However, the term is broadly applicable. For example, poker dealers deal cards, music dealers sell instruments, and car dealerships sell vehicles along with maintenance services. A dealership certificate grants the rights to sell certain goods or services.
Dealer Operations
Dealers also function in financial markets, acquiring and then reselling securities. Over-the-counter trading involves dealers, and foreign currency transactions typically use bank and exchange dealers. Broker-dealers intermediate security transactions or trade for themselves, with varying compensation models influencing their profitability.
Understanding Dealer Terminology
What do you call a dealer? A dealer is also known as a retail distributor. They work with manufacturers to distribute products along the supply chain to dealers, retailers, or sometimes directly to consumers.
A salesperson is someone who sells things directly to customers, with variants like salesman or saleswoman based on gender. A person who sells medicine is called a pharmacist, operating in a pharmacy.
A croupier or dealer at a gaming table assists in the game’s conduct, especially with bets and payouts, typically employed by casinos.
Car Buying Advice
When shopping for cars, aim to get pricing from at least 10 dealerships to foster competition and secure the best deal. A car sold "as is" comes without a warranty.