Types of agents. Agency and types of agents

When identifying possible options for distribution channels, it is necessary to determine the type of intermediaries used. Intermediaries can be classified according to a combination of two characteristics:

on whose behalf the intermediary works

· at whose expense the intermediary conducts its operations

It is possible to distinguish 4 types of intermediaries

Types of intermediaries in distribution channels

Dealers- wholesale, less often retail intermediaries who conduct transactions on their own behalf and at their own expense. The goods are purchased by them under a supply agreement. Thus, the dealer becomes the owner of the product after full payment for the delivery. The relationship between the manufacturer and the dealer is terminated after all conditions under the supply agreement are met. In the supply chain, dealers occupy the position closest to end consumers.

There are two types of dealers:

Exclusive dealers are the only representatives of the manufacturer in a given region and have exclusive rights to sell its products;

Distributors – wholesale and retail intermediaries conducting operations on behalf of the manufacturer and at their own expense. As a rule, the manufacturer grants distributors the right to sell their products in a certain territory and for a certain period. Thus, the distributor does not own the products. Under the agreement, they acquire the right to sell products. The distributor can also act on his own behalf. In this case, within the framework of the agreement for the granting of the right to sell, a supply agreement is concluded.

In the supply chain, distributors typically occupy a position between the manufacturer and the dealers.

Commission agents- These are wholesale and retail intermediaries conducting operations on their own behalf and at the expense of the manufacturer. The commission agent is not the owner of the products sold. The manufacturer (or principal in this transaction) remains the owner of the product until it is transferred and paid for by end consumers. The contract for the supply of products is concluded on behalf of the commission agent. Thus, the commission agent is an intermediary only for the principal, and not for the end consumer, whose money is transferred to the account of the commission agent. In this case, the risk of accidental damage and loss of products lies with the consignor. The commission agent is obliged to ensure the safety of the goods. He is responsible for loss or damage to products due to the fault of the commission agent. Remuneration to the commission agent is usually paid in the form of a percentage of the amount of the transaction performed or as the difference between the price set by the principal and the selling price.

Agents– intermediaries acting as a representative or assistant of another person who is principal in relation to him (principal). As a rule, agents are legal entities. The agent enters into transactions on behalf and at the expense of the principal. Based on the scope of their powers, agents are divided into two categories:

Universal - perform any legal actions on behalf of the principal;

General – conclude only transactions specified in the power of attorney.

For their services, agents receive remuneration both according to tariffs and as agreed with the principal. The most common type of agency fee is a percentage of the amount of the concluded transaction.

Brokers– intermediaries in concluding transactions, bringing together counterparties. Brokers do not own products like dealers or distributors, and do not manage products like distributors, commission agents, or agents. Unlike agents, brokers do not have a contractual relationship with any of the parties to the transaction and act only on the basis of individual instructions. Brokers are remunerated only for products sold. Their income can be formed as a certain percentage of the cost of goods sold or as a fixed fee for each unit of goods sold.

When designing distribution channels, the manufacturer chooses the most optimal option for itself. A new company with limited financial resources will use already established distribution channels even if it is not entirely profitable for it.

Perhaps the maximum profit can be achieved by sales employees of the company itself, who are able to concentrate their efforts specifically on their own product, persistent in their desire to sell, because this determines their work at the company. In addition, they are well aware of both the disadvantages and advantages of the product offered. However, it is possible that it is more profitable to turn to intermediary companies. It is no secret that some consumers are more willing to deal with agents who represent not one, but several different (preferably even competing) manufacturers.

Contacting a distributor (intermediary) at the initial stage of organizing sales will require less money than organizing your own sales department. But the increase in costs when working with distributors occurs faster due to the larger commission percentage for them compared to their sales employees.

When choosing a distribution channel, the company faces an alternative: with direct sales there are no losses in costs, and using the services of a distributor reduces the cost of managing the movement of goods.

The most important factors to consider include the following:

• consumer (quantitative characteristics, concentration, average purchase volume, location and opening hours of retail outlets, the need for assistance from sales employees, credit conditions, main market segments and their characteristics);
• company interests (control, profit, time, flexibility in resources, need for service, specialization, efficiency, relationships in sales channels and experience in promotion);
• product (service) (unit cost, technical complexity, safety, frequency of shipments, volume, weight, separability);
• competitors (concentration, assortment, quantity, consumer market, methods of distribution and promotion, relationships in sales channels);
• channels of product distribution (direct (indirect), quantity, functions, traditions, placement, accessibility, legal aspects).

The criteria for choosing a distribution channel are the following.

• 1. The size of the target market, determined by the number of possible buyers. If the market size is significant, contacting distributors is mandatory.
• 2. Product characteristics. Short channels are required for perishable, heavy and bulky goods (due to high transport costs) and goods of high technological complexity that require after-sales service. Long channels can be used when selling inexpensive standard products (stationery, shoes, chewing gum, clothing).

In the business market, distribution channels are shorter compared to the consumer market. Channel structure in the business market: supplier – agent – ​​distributor – manufacturer; on the consumer level: manufacturer – wholesaler – retailer – consumer.

3. Characteristics of the company. Large firms have greater financial resources and are able to take on many sales functions and do without a large number of intermediaries.

Types of distributors (intermediaries)

Intermediaries can be both legal entities and individuals. Many companies resort to their services to ensure the existence and functioning of their channel, although this undoubtedly promises a loss of control over the sales process.

At the same time, using the services of intermediaries has its advantages.

• 1. The distributor will deliver the product to the consumer faster due to the greater proximity of his warehouse compared to the manufacturer's branch.
• 2. The company's intermediary slightly reduces the price, shifting not only transport but also insurance costs to the consumer.
• 3. It is undoubtedly easier for the consumer to resolve conflicts and misunderstandings with the distributor than to try to contact the manufacturer.
• 4. The manufacturer does not have the funds to organize direct marketing, or they do, but it would be more expedient to invest them in the development of production.

Depending on whose name the intermediary acts and on whose account he carries out transactions, there are four types of intermediaries: dealers, distributors, commission agents, agents (brokers).

Dealers – wholesale (less often retail) intermediaries conducting operations on their own behalf and at their own expense. They purchase goods under a supply agreement, becoming the owners of the product when they pay for the delivery in full. Once all conditions under the supply agreement have been met, the manufacturer and dealer may terminate the relationship. However, recently, the manufacturer, trying to form vertical distribution channels, prefers to continue relations with a good dealer. In this case, the dealer combines some stages of the production and distribution process, becoming a privilege holder. Its position in the distribution channel approaches that of the final consumer.

Distributors are wholesale and retail intermediaries who conduct transactions on behalf of the manufacturer, but at their own expense. Typically, a manufacturing company grants such an intermediary the right to trade its products for a certain period of time at a certain place, i.e. the distributor does not become the owner of the product, but only acquires the right to sell it. However, he has the right to act on his own behalf by concluding a supply agreement as part of the sales agreement.

The distributor may or may not have warehouse space (own or rented).

Distributors without a warehouse facility are also known as sales brokers.

It is beneficial for the manufacturer to choose a distributor as an intermediary:

• in a dispersed market, when a direct distribution channel will require significant costs;
• consumer purchase of small quantities of goods that are inconvenient for both warehouse and transit processing;
• if the number of manufacturer warehouses in the region is less than the number of intermediaries;
• products are intended for consumers in a number of industries;
• when your own sales organization is unprofitable due to an insignificant difference between the cost of the product and its price.

Commission agents – wholesale and retail intermediaries who conduct operations on their own behalf, but at the expense of the manufacturer, without being the owner of the goods being sold. The manufacturer (or the principal of the transaction) continues to act as the owner of the product until it is transferred to the final consumer, after he has paid for the purchase. The contract for the supply of goods is concluded on behalf of the commission agent, who is an intermediary only for the principal, but not for the final consumer, who transfers money at the expense of the commission agent. The principal assumes the risks of unintentional damage to the product and its destruction. The duty of the commission agent is to ensure the safety of the product, as well as liability in the event of loss (damage) due to the fault of the commission agent. The commission agent receives remuneration mainly as a percentage of the transaction amount or the difference between the principal's price and the price at which the goods are sold.

Agents – These are intermediaries who act as representatives or assistants of the principal (another person who is principal in relation to him). Usually these are legal entities; transactions are concluded by agents not only on behalf of, but also at the expense of the principals. Depending on the scope of authority, there are universal agents who perform any legal actions on behalf of the principal, and general agents who enter into only transactions that are specified in the power of attorney. Agents' services are remunerated according to tariffs or as agreed with the principal. The most common types of agency remuneration for an agent include a percentage of the amount of the transaction concluded by him.

Brokers- These are intermediaries in concluding a transaction who bring counterparties together. Unlike distributors or dealers, a broker does not become the owner of the product, and also (unlike a distributor, agent or commission agent) does not distribute it. A broker also differs from an agent in that he acts only on the basis of a specific instruction, without entering into a contractual relationship with the parties to the transaction. The broker receives compensation exclusively for the goods sold. Brokerage income is a pre-agreed percentage of the cost of products sold or a fixed fee for a unit of product sold.

Some sources also list purchasing offices and auctions as intermediaries.

Purchasing offices are independent commercial organizations that receive payment as a percentage of annual sales. They resemble brokers in the nature of their activities. These offices are engaged in providing information about price changes and possible competitors; at the direction of clients, they prepare and conclude transactions.

In auction trading, the seller, in order to obtain maximum profit, relies on competition from buyers who are present during the sale. Auction (from lat. auctio– public auction) – sale of goods with individual properties and value. Before the auction, the goods put up for sale are shown to everyone. Public auctions have a specific location and take place at a specific, predetermined time. The auctioneer is not responsible for goods sold at auction.

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The most common form of intermediation is agency, that is, this type of relationship in which the agent acts as an intermediary between the producer and the consumer. Agent is a person acting on behalf and in the interests of the manufacturer of a product or consumer. The person in whose interests and on whose behalf the agent acts is called the principal. The principal can be either the owner of the product, instructing the agent to sell it, or the consumer of the product, instructing the agent to buy this required product. Thus, mediation with the participation of an agent includes the relationship of not two, but three subjects. There are several types of agents: - manufacturers' agents; - authorized sales agents; - purchasing agents. Manufacturers' agents (manufacturers' representatives) - represent the interests of two or more manufacturers of complementary goods. Authorized sales agents receive the right to sell all products and represent They are like a sales department, but they are not part of the structure of the manufacturing company, but interact with it on contractual terms. Purchasing agents are most often involved in selecting the required product range (for example, for small retailers). The legal basis for such relationships is the agency relationship (agency agreement) concluded between the principal and the agent. Under this agreement, the agent undertakes, on behalf of the principal, to sell (or buy) the goods on the terms specified in the agreement. The basis of such an agreement, among others, are two key conditions - the price of the goods and the amount of the agency fee.

Among the intermediaries, the following types are distinguished: wholesale firms, distributors, dealers, agents, brokers, traveling salesmen, jobbers, etc. Let's look at the main ones.

The mechanism for making decisions about distribution channels is based on the economic and technological feasibility of moving goods along such a route in order to bring benefits to the manufacturer, intermediaries and the end consumer. If any element in the chain does not receive the calculated benefit, the distribution channel will be ineffective.

Sales agents are persons who represent the interests of certain manufacturers in the sale of their goods. Sales agents receive their remuneration in the form of commissions. They do not buy goods as their own, but sometimes have inventory on a consignment basis - payment for goods sold after certain equal periods of time.

A distinction is made between a manufacturer's agent and a sales agent. The manufacturer's agent sells part of the manufacturer's products, is limited to a certain geographic area, and has inventory on consignment terms.

Sales Agent - Serves consumers in a specific industry regardless of location. Sales operations are carried out from the manufacturer's warehouse. Agents can be supplier-dependent or independent. If they are dependent on a supplier, they may not have the right to distribute similar products from competing suppliers.

The use of sales agents is advisable if the manufacturer produces one or a very narrow range of goods with a limited sales volume in each market area. A wholesaler will not focus much on one product that has a limited market. The agent sells no more than 30 items and will pay more attention to the product.

The main advantages of sales agents:

1. Sales costs are low - 5-6% of sales volume, while for wholesale companies - 13-25%.

2. Sales agents of any type are useful when entering new markets with a new product. He has extensive business connections and contacts and will make every effort to popularize the product in the new market.

3. The quality of sales agents’ activities is higher than that of wholesale companies, since the range of goods is narrower (up to 30 items).

The disadvantages of sales agents include the following:

1. The activities of sales agents cannot be as fully controlled as the activities of their own sales department.

2. There is no flexibility in a situation where the situation requires competition in the main elements of marketing - price reductions, discounts, preferential terms of payment, provision of an additional range of services, etc.

3. If the volume of sales is significant, the cost of selling through an agent plus the cost of physical distribution can add up to a fairly expensive distribution system.

4. An agent who serves several suppliers is subject to competition among manufacturers.

5. Agents most often cannot provide after-sales services because they do not have their own facilities.

Sales agents work on the basis of agency agreements - these are agreements concluded between a company and its sales agent for an indefinite period of time with the right to terminate them within a specified time frame. Agreements are distinguished by the scope of the rights and obligations of the parties. There are also agreements granting exclusive rights.

All agents can be divided into five groups, according to the type of processing of perceived information:

Agents with simple behavior.

Agents with model-based behavior.

Targeted agents.

Practical agents.

Learning agents.

Many different bases can be proposed for constructing classifications of agents. The most obvious are the classification criteria associated with the polar scales “natural - artificial” and “material - virtual”. According to the first criterion, the following stand out:

• natural agents - animals, people, herds of animals, groups of people;
• artificial agents - robots, groups of automata, complex computer programs.

According to the second criterion, all artificial agents are divided into:

• material, physically existing and working in real space, for example, integral robots endowed with various means of “sensing”, manipulators or pedipulators;
• virtual, existing only in a certain software environment (virtual space), which can often be imagined as robots engaged not in physical, but in information work; Such “software robots” are called softbots for short.

Another pair of interrelated classification criteria is based on the dichotomies “concentrated - distributed” and “fixed - mobile”. An example of a stationary agent is an industrial manipulation robot, and an example of a mobile agent is a software search agent that migrates across a computer network in order to find the necessary information. Sometimes mobile software robots are interpreted as distributed, purely communicative agents that do not have their own means of perceiving and performing actions (therefore they do not manipulate any objects), but only use available resources to communicate with other agents and migrate across the network in search of relevant data and procedures . On the contrary, precisely localized agents are in some sense the opposite of communicative ones: they cannot move through a network and usually do not have the ability to represent the environment, and their communication with other agents occurs not directly, but indirectly, through mechanisms of perception and action.

An important basis for classification is the presence (absence) of agents of learning or adaptability characteristics. In learning agents, behavior is based on previous experience.

Another important basis for classifying artificial agents is the adoption of either a psychological or biological metaphor when considering the nature of their actions (the “psychological - biological” dichotomy). In one case, we are talking about the interpretation of agents as quasi-subjects who independently solve the problems facing them, and in the other they are likened to the simplest organisms, directly responding to changes in the environment in the interests of survival and adaptation.

In general, this typology of agents is closely related to the classical problem of “subject-object” interaction. The level of subjectivity of an agent directly depends on whether he is endowed with symbolic representations required for organizing reasoning, or, in contrast, he works only at the level of images (subsymbolic) associated with sensorimotor regulation. Then the classification of agents can be constructed according to the following scheme:

According to the first criterion, intelligent (cognitive, reasoning, communicative, resource) and reactive agents are distinguished. Intelligent agents have a well-developed and replenished symbolic model of the external world, which is achieved due to the presence of a knowledge base, decision mechanisms and action analysis. The related term “reasoner” is reserved to denote an agent who, based on a symbolic model of the external environment, is capable of conducting its own reasoning, for example, using the pattern comparison method, and based on this, making independent decisions or performing actions that change the environment.

A slight difference between these types of intelligent agents is associated with the emphasis placed on certain intellectual functions: either on obtaining knowledge about the environment, or on reasoning about possible actions. For communicative agents, the internal model of the world turns mainly into a communication model, consisting of models of participants, the process and the desired result of communication. Finally, the knowledge base of a resource agent contains mainly knowledge about the structure and state of resources that determine various forms of behavior.

A full-fledged intelligent agent must have at least four listed functions: cognitive, reasoning (and, in a more general context, regulatory), communicative and resource.

In the same time reactive agents They do not have any developed representation of the external environment, nor a mechanism for multi-step reasoning, nor a sufficient amount of their own resources. This leads to another significant difference between intelligent and reactive agents, related to the ability to predict changes in the external environment and, as a consequence, their future. Due to the above disadvantages, reactive agents have a very limited range of foresight. They are practically unable to plan their actions, since reactivity in its pure form means a feedback structure that does not contain forecast mechanisms. Whereas intelligent agents, thanks to rich internal representations of the external environment and reasoning capabilities, can remember and analyze various situations, anticipate possible reactions to their actions, draw conclusions from this that are useful for further actions and, as a result, plan their behavior. It is precisely the developed cognitive and deliberative abilities that allow such agents to build virtual worlds, working in which they form action plans.

Intelligent agents, being much more autonomous than reactive ones, have a much more pronounced individuality and are characterized by expedient behavior in a community of agents, as well as the desire to use the resources of other agents to achieve their own goals. At the same time, reactive agents, as is evident from their very name, work mainly at the level of stimulus-reactive connections, having a very poor individuality and strong dependence on the external environment (community of agents). The results of a comparative analysis of reactive and cognitive agents are presented in the table.

Characteristics	Cognitive agents	Reactive agents
Internal model of the external world	Developed	Primitive
Reasoning	Complex and reflective reasoning	Simple one-step reasoning
Motivation	Developed motivation system, including beliefs, desires, intentions	The simplest urges associated with survival
Memory	Eat	No
Reaction	Slow	Fast
Adaptability	Small	High
Modular architecture	Eat	No
Composition of a multi-agent system	Small number of autonomous agents	A large number of agents dependent on each other

Further, according to the type of behavior, intelligent agents are divided into intentional and reflexive, and reactive agents into driven (impulsive) and trophic. Most intelligent (cognitive) agents can be classified as intentional. Such agents are endowed with their own motivation mechanisms. This means that they somehow model internal beliefs, desires, intentions and motives that generate goals that determine their actions.

In turn, modular or reflex agents do not have internal sources of motivation and their own goals, and their behavior is characterized by the simplest (one-step) conclusions or automatisms.

Thus, they represent an extreme case of the concept of a cognitive agent and can be used as “auxiliary agents.” These agents are able to answer questions and complete tasks that other agents set for them, but solving these problems does not lead to the emergence of their own goals. Typical examples of such degenerate agents are database search systems and simple logic controllers.

In turn, reactive agents contain, as it were, compiled knowledge about the required actions: they do not need to build a detailed internal representation of the external environment, since reactions to a set of presented situations are quite sufficient, i.e. the nature of their reactions is determined only by current information.

Based on the complexity of these reactions and the origin of the sources of motivation, reactive agents are divided into impulsive and trophic agents. When trophic agents behavior is determined by the simplest trophic relationships (such as “who eats whom”). In fact, it comes down to a response to stimuli coming from the external environment (there are no motives or goals of its own), i.e., it is completely determined by its local state. A typical model of such agents is cellular automata, where the main parameters are: the radius of perception of the agent, the number of conventional units of food in the external environment and the energy cost of the unit. Here, each trophic (essentially situational) agent has a small set of situational rules that determine its reactions to signals from the environment. Examples of such rules are expressions like “if there is a power unit in the perception radius, then head towards it” or “if no power unit is detected in the perception radius, then randomly select one of the free neighboring squares and move to this square.”

Meanwhile, reactive agents called impulsive, may also have a primitive motivational mechanism that pushes them to complete a task, for example, satisfying a set of life needs. We are talking about maintaining energy balance or, more broadly, about the conditions for the survival of the agent. The action of the agent’s self-preservation mechanism is characterized by the ability to determine and increase the distance of the boundaries of its existence. The motivation for some action of an impulsive agent is based on factors such as the deviation of some vital variable (need) from the norm and the weight (subjective importance) of this need.

So, cognitive agents, due to their complexity, knowledge and ability to reason about their behavior and the external environment, can be more autonomous than reactive ones. They work relatively independently, demonstrating fairly flexible behavior. But the same complexity of autonomous agents, resulting in the ability to resist external influences, causes certain difficulties in organizing their effective interaction. Therefore, in a composition that includes only intelligent agents, as a rule, there are no more than 7 + 2 autonomous units.

On the contrary, the rather simple structure of reactive agents determines their strict dependence on the environment. Consequently, their capabilities are comparatively small when they function alone and are limited by their own resources. However, it is easier for them to form a group or organization that can flexibly adapt to changes in the environment under the influence of the mechanism of natural selection. Therefore, reactive agents are of interest not at the individual, but at the collective level, and their abilities to adapt and develop arise spontaneously as a result of local interactions. Thus, reactive agents, which have almost no individuality, dissolving in the general mass, due to their large number and redundancy, can solve complex problems. In the limit, corresponding multi-agent systems can be formed as a result of spontaneous interactions without precise specification of individual agents. Such “clouds” or “swarms” (swarms), consisting of a significant number of mobile, reactive agents, can be compared to some kind of superorganism. Mutual adaptation and cooperation of cells in such an organism makes it possible to create a common feedback chain that ensures homeostasis of the entire system.

Intelligent agents, based on the nature of information interaction with each other, can be divided into truthful (seeking to convey true information) and deceitful (focused on disinformation of other agents).

The level of “free will”, the nature of intentions and attitude towards partners are associated, in particular, with ideas about benevolent and malicious, self-interested and altruistic agents. In particular, it is assumed that well-intentioned (benevolent) agents always try to do only what is required of them and avoid conflict situations.

Finally, another version of the classification, where in addition to the biological and psychological levels of agent formation, the social is introduced and analogies with the triad “plant - animal - human” are used. According to P. Braspenning, reactive, intentional and social agents can be likened to the components of this triad. Agents like plants are characterized by reactivity, executing stereotyped programs and sending messages to other agents and to the environment. Animal-like agents are able to select goals, formulate plans of action, and ensure their implementation. They coordinate their actions by exchanging information about individual preferences or goals. Finally, humanoid agents, having internal models of other agents (and the ability to reflect), are characterized by social (role) behavior. The complexity of internal models depends on the level of knowledge and experience of the humanoid agent.

Considering the main types of intermediaries, we can give the following characteristics.

Agent (broker, broker, commission agent, traveling salesman, etc.) - an individual or legal entity who carries out transactions or carries out business orders of another person at his expense and on his behalf, representing the interests of the buyer or seller on a relatively permanent basis, not accepting own ownership of the goods. The agent searches for potential buyers and sellers, organizes negotiations between them, prepares draft contracts, helps in formalizing the transfer of ownership of goods, advertises the product, and generates interest in purchasing the product.

Broker (appraiser, commission agent) is an individual or legal entity who acts as an intermediary in concluding wholesale transactions between interested parties. Sometimes a broker may take ownership of the goods. For mediation, the broker receives a fee in the form of a certain percentage of the transaction amount or an absolute amount specified in advance in the contract.

A distributor is an individual or legal entity - a wholesale intermediary serving various industries, having warehouses and vehicles and carrying out commercial activities on its own behalf and at its own expense.

A commission agent is an intermediary in a transaction who makes transactions for a certain remuneration (commission), in favor and at the expense of the customer (client), but on his own behalf.

Committent - a person who gives instructions to another person (commission agent) to enter into a transaction with goods on behalf of the commission agent, but at the expense of the committent.

A traveling salesman is a traveling agent of a trading enterprise or company who offers customers goods according to the samples and catalogs he has.

Consignee is a wholesale merchant who receives goods from the guarantor and sells them from his warehouse and on his own behalf for a fee that the guarantor pays to the consignor under the agreement.

A broker is an intermediary in concluding transactions on real estate exchanges, stock and universal exchanges, performing transactions at the expense of clients and receiving remuneration in the form of commissions.

A jobber is an intermediary who does not have his own warehouse premises and sells goods in a short time. The type of transaction is “just in time”. He sells his goods “from the wheels”.

All intermediaries can be combined into two large groups: independent (distributor, dealer), presented in Fig.

Rice.

Distributors, as the main type of resellers, are divided into 2 types:

• * owning or renting warehouse premises;
• *do not own or rent warehouse space (trade brokers).

Dependent intermediaries do not claim ownership of the goods they sell and work on a commission basis. The size of the remuneration depends on the volume and complexity of the transactions they make. This type of reseller is less common than distributors.

Rice.

The most common form of dependent intermediaries are sales agents, which are divided into industrial and sales. Industrial agents typically replace the company's sales force, but receive a salary and commission that can range from 3 to 10% of sales volume. The activities of industrial agents depend entirely on the decisions of the enterprise management. Industrial agents have very limited influence on the manufacturer's marketing program and price level.

Sales agents deal with small businesses and are responsible for marketing all products. Essentially, they become the marketing arm of the manufacturer and are empowered to negotiate prices and other terms of sale. Sales agents' offices are located in close proximity to the consumer.

Brokers bring buyers and sellers together to complete a transaction. They are well informed about the state of the market, sales conditions, price levels, and master the art of negotiation. In some cases, they can provide delivery and storage of products. For mediation between the buyer and seller, the broker receives a commission, usually from both parties to the transaction, which distinguishes him from other dependent intermediaries.

Commission agents receive products from manufacturers on the principles of consignment, which consists of instructing one party (the consignor) to the other party (the consignor) to sell goods from the warehouse on their own behalf, but at the expense of the seller. Commission agents have an office, as well as warehouses for storing and selling products. Commission agents can negotiate prices with consumers at intervals determined by the manufacturer.

Auctions are one of the types of sales enterprises operating in the market of antiques, luxury goods, and used equipment. Operating expenses of auctions in the total volume of wholesale sales are about 3%. Nevertheless, the auction form of trade in our country has favorable prospects, since our market for used equipment is quite significant.

Different types of intermediaries undertake different functions. Below are the distinguishing qualities of the most common types of intermediaries.

• · Simple - trading firms, individuals and organizations that facilitate the conclusion of contracts, but do not themselves participate in their implementation. (Brokers or brokerage firms).
• · Attorneys are firms, individuals or organizations that are engaged by sellers or buyers (principals) to carry out transactions on behalf and at the expense of the principals.
• · Commission agents are firms, individuals and organizations that look for partners and sign sales contracts on their own behalf, but at the expense of sellers or buyers (principals), who bear the commercial risk. The commission agent is an independent merchant and may be in a long-term contractual relationship or have short-term orders. According to the subject of their work, they distinguish between trading and stock commission agents, and according to the type of work - purchasing and sales.
• · Consignees are a type of commission agents who work under certain conditions, in particular they accept goods into their warehouse; sell them on markets for a long period of time; unsold goods may be returned to the manufacturer.
• · Agents are legal entities (firms, organizations) or individuals who carry out certain transactions on behalf of another person (principal) at his expense and on his behalf, as well as ensuring the preparation of transactions, but usually without the right to sign an agreement.
• · Sales - independent trading companies involved in the sale of goods (merchants, resellers, distributors).

Features of the activities of resellers

• · Simple: market research; informing about trends in the development of goods and markets; meeting and providing representatives and their goods with premises and transport; organizing business meetings with counterparties; implementation of advertising; creating a favorable opinion; informing about upcoming large purchases and tenders.
• · Attorneys: concluding contracts on behalf and at the expense of the principal on conditions no worse: volume, terms, delivery conditions, etc.
• · Commission agents: market research; advertising, technical maintenance of products; protection of the principal's commercial interests.
• · Consignors: the ability to increase prices for goods if sales are going well.
• · Agents: interpreted differently in different countries: in the USA and England - any intermediary (simple, attorney, commission agent), in Euro-continental countries - simple or attorney. They may also refer to dealers, brokers, personal representatives, and lawyers who carry out their actions with the knowledge of the principal under an agency agreement for a fee.
• · Sales: concluding sales and purchase agreements on one’s own behalf, both with sellers and buyers (independently). Study of market conditions; advertising of goods and manufacturers; maintaining warehouses for stock of goods. Performing pre-sale service and pre-sale finalization of goods; creation of a stable sales network, which may include regional distributors and final sellers (dealers); ensuring technical maintenance of products at all levels; bear responsibility for all types of risks (damage, loss of purchased goods, etc.). They set the price themselves; are themselves responsible for the risks associated with customer loans.

To summarize, it should be noted that it is often advisable for enterprises to use different distribution channels. Thus, with a high concentration of consumers of homogeneous products in one region, a direct channel is rational; if they are scattered in another, sales using intermediaries is rational.