A distributor proposal letter to supply the products is drafted by a distributor and is sent to a client or customer organization. The latter can be a wholesaler, reseller, or end-user. In this letter, the distributor offers to supply the products to a potential client and attempt to convince him for a contract. Usually, it is the first formal correspondence between the two parties, which may lead to a number of correspondences, if the proposal gets accepted by the client.
A market can be as simple as a chain, that only includes a manufacturer and customers. However, a complicated market may have further layers/channels, such as wholesalers, resellers, distributors, etc. Usually, the number of channels is dependent on the type of products and market features.
When a market has a layer of distribution, the distributors try to approach the clients or resellers to supply the products. They usually use proposal letters to reach out to potential and interested clients. Sometimes, the client organizations seek such letters, while at other times, the distributors just prepare their offer, and approach the client, that they believe would be interested in their offer.
The letter includes the following details
If the receiver of this letter likes the offers mentioned in the proposal letter, he would sign the contract with the distributor after a sequence of correspondences and meetings. However, if he is not interested, he would reject the offer, or if another distributor is giving him better offers, he would accept the proposal with the maximum benefits for him.
Dear Ms. Inshal,
I am writing this letter to propose the supply of cosmetic products to your company ABC Limited.
XYZ Limited has been in the cosmetic distribution market for more than twenty years, due to which, we have strong networks nationally as well as internationally. We import products from twelve countries as well as distribute local products. The list of the companies and products is attached with this letter.
We buy products directly from the companies and distribute them to various resellers. However, as economies of scale are our philosophy, we ensure that the resellers do not have to face high prices due to this additional layer of distributorship between the manufacturer and product seller.
As you own one of the leading cosmetic store chains in the country, we would like to propose a distribution partnership with you. We will be offering you 7% discount prices than what you are getting currently. As we have a wide network of distribution, we will provide free delivery to all your stores.
In addition, no other distributor in the market can match the variety we are offering, including the range of products and brands. By signing a deal with us, you can receive all the required cosmetic products in one order at your doorstep. Further, we provide the guarantee of originality, genuineness, and quality of the products.
Initially, we can sign a two-year contract, which we can be extended later. We hope that you will accept our proposal and contact us for further proceedings.