Communicate regularly. This helps you to identify potential problems at an early stage, making it more likely that you will be able to resolve them before the consequences become serious. The agreement needs to be carefully drafted to take into account what you are trying to achieve and the implications of competition law and other regulations, breach of which can result in severe penalties.
These vary depending on the territory covered by the agreement and the choice of law in the agreement. You can give a distributor exclusive rights to distribute your goods in a particular territory, limit the number of distributors or require distributors to meet particular qualifying criteria. However, if you do, competition law probably means you can't stop the distributor from selling competing products too.
Take advice. If the distributor wants exclusive rights to a territory, you might also aim to negotiate a minimum sales target. Competition law will apply. However, the agreement cannot restrict passive sales - for example, if a customer approaches the distributor, or if the distributor sells outside the territory through their website.
You cannot control the prices the distributor charges for your products, because that would breach competition law. You can control promotion and sales in the agreement, such as the adverts and point of sale materials used. His own Distributors 2. His own Formulator customers. That being said, our experience indicates the aforementioned circumstance rarely exists. Therefore, when a semi-technical to highly technical product line is being offered to a set of targeted coatings or adhesives formulators, direct sales is usually the best tactic.
Related Searches. Adhesives and Sealants. Related Knowledge Center. Vertical, Horizontal Or Lateral Which Way To Market? Cross Over The Bridge. The Best of Times, the Worst of Times. Mentoring: a lost technique. New technology adoption: Part II. Understanding of the market Distributors have an intimate understanding of the market.
They know who to reach, where best to take your product and how to get prospective buyers interested. So if you have a niche product, it is not going to work everywhere, you need to know where to sell it for maximum impact and this information is available with convenience store distribution They might even suggest new markets that you had no idea even existed and take your product there. Sales and marketing Distributors are champion sellers. Motivated One of the biggest reasons why they are able to sell so quickly is because they will sell the products as though they were their own.
That is because the only way for convenience store suppliers to make a profit is to resell their stocks. The profit motive is always a driving factor.
When the first batch goes out, that itself is an indicator that the product is selling well and they will want to ride on the profits over again. Logistics Distributors have the trucks, vans and manpower that is necessary to transport the goods to where ever it is they need to go. Few manufacturers have this ability. Unless you are a major force in the market and are big enough to be able handle countrywide distribution, this job is best left to distributors.
Five Questions to Build Distributor Relationships To build relationships with their distributors, manufacturers should start by asking themselves these five questions: Who are our distributors? Why are they here? What can they do for me? What should I do for them? How can I get them to sell my products? Marcus W. Subscribe Now and Get: In-depth articles on pump industry issues Expert insights into important topics in the field Keep up with trends, basics, and more.
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