When looking to add on to your product line, where do you start? Two common business models that have proved to last the test of time are a Dealer Model and a Franchise Model. But which is better? How do you make the decision on which you want to invest in and profit from? It’s important to understand the differences between the two and why dealerships are more often than not the better model to grow your business with.
A franchise is a business model that looks like every other business in its chain. Generally, it’s a turnkey operation in which the franchisee purchases a complete store with some modifications of his or her choice. As the franchisee, you typically use the franchiser as your main supplier for goods for sale in your service.
The primary benefit of a franchise is brand recognition. In most cases, the customer has heard of the franchise name and can associate it with previous experiences. This makes the franchisee’s job less stressful as he or she can usually just write a check to the franchiser and start operating a store that is already ready to generate revenue. That being said, the franchisee is still subject to the franchise's overarching authority. The franchise can restrict you from selling to certain brands, establishing other dealerships, or performing unapproved activities.
A dealership is an agreement to be able to sell a particular product or service. Dealerships often don’t have a very comprehensive business design and the agreement may or may not be exclusive based on territory.
Dealerships provide much more flexibility in your business model than franchises. They allow you to carry other brands and in some cases you may even be allowed to carry competition to your dealer’s brand. Moreover, there are no fees with dealerships. In many dealership cases individuals can keep their own company identity while selling a branding product or service, making the dealership an even more unique model with maximum flexibility.
StealthBond© Dealer Benefits
StealthBond© is the metal roofing industry’s first Concealed Adhesive System that utilizes a high-strength structural adhesive. StealthBond© is sold through authorized dealer installers. As a StealthBond© Dealer, you will have an exclusive territory in which to offer the StealthBond© 5V Crimp Concealed Adhesive System to homeowners. Qualified metal roofing contractors able to meet our stringent guidelines will be trained as authorized dealer/installers. StealthBond© Dealer benefits also include a lead generation program where dealers receive leads generated by the brand for their exclusive product line to maximize their profits. Be the first in your territory to grow your metal roofing business with the StealthBond© Advantage.