Chapter # 5 : Selecting the right export distribution
Q: What do I do with a foreign representative who does not perform?
A: There are usually two reasons why they may not perform: You selected the wrong one or you have not activated them. Both are your fault. If you did not take the time to select the right partner, you most likely will have to start all over again to find a new one
If you did not activate them, that is, by making them hungry to earn money, supporting them fully, etc., they will not perform well. If it is not too late, try to reactivate them. Do not try to get them to sell as you do on your domestic market. Adapt your activities to the local market. Make sure they can make money and give them the assistance they need. Then you will see the sales results.
Q: We sell our equipment to different customer groups. Should we use different distribution channels?
A: Yes. As long there is no conflict between the distributors that is fine. So not to confuse the end-user or if there is a risk of conflict, sell the products under different names and perhaps use different colours.
Q: My distributor wants to sell under a private brand. Should I allow that?
A: There are pros and cons to this. If you want to get the product known on the market, use it. If the distributor does not perform, you can use someone else for distribution. A well-established brand or trade name is a good marketing tool. However, if your distributor has a good name already and that will help your sales, be open to using it.
Q: My distributor wants to use my company name when selling my products. Is that OK?
A: Yes. However, hopefully, you have registered your trade name in the distributor’s country. If that is the case, you have to register a license allowing them to use the name. The registration allows you to withdraw permission to use your name if the arrangements do not work out.
Leif Holmvall, President
Export Pro Inc.
In our book “Export & Import – Winning in the Global Marketplace”
ISBN 978-0-9681148-1-0 those topics are covered in depth. You can also buy our book for less than $10 as an e-book visit e.g. https://www.amazon.com/dp/0968114814, where you can read part of the book.
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