How to Become a Generator Dealer

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Reach out to generator manufacturers to become a generator dealer.
Reach out to generator manufacturers to become a generator dealer. (Image: power generator at dusk image by Aussiebloke from Fotolia.com)

Generators protect homes and businesses from power outages, allowing them to run either their whole house or certain appliances even if there is an electrical failure in their area. As more and more people want to purchase generators as a back-up to keep their businesses running even during power failures, generator dealership can prove to be a very lucrative business venture if started with proper planning and research.

Research various generator manufacturers to see which brands you want to sell. Some generator brands include Briggs & Stratton, Generac, GE and Kohler. See how well these brands have been doing in terms of their profits by looking at quarterly earnings statements, which can be found online. Decide which brands to sell based on the success of the company and the quality of their products, not by which brand sells the cheapest generators.

Speak with other generator dealers who operate in your geographic area. Learn which distributors they work with, and if they are happy with the services. Inquire about the post-sales service and maintenance policies of the distributors in which you are interested. If you do not know any other generator dealers in your area, join and participate in online forums. Compile a list of potential brands based on your research and on the information you have gathered from other dealers.

Reach out to human resources departments of the generator brands you wish to distribute. Some companies, such as Generac, have dedicated teams to work directly with vendors and potential vendors, and have contact information for these teams clearly displayed on their websites. Look out for links on the companies' websites that say "become a dealer" or "business opportunities."

Do not sign a contract with any one distributor until you have interacted with all of the distributors in which you have an interest. A distributor might want you to exclusively sell their products, which might not be your business plan. Make sure you have worked all these issues out before signing a contract.

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