Posted by: changholt | July 13, 2009

What does your local partner really want?

WHAT Your Local Partners want:
1. Prestige products.
2. Exclusive territory.
3. Good product line (either one that sells easily and has a large market or a high-cost product with a small, but monopolistic, market).
4. Training from the manufacturer.
5. Technical aspects of after-sales servicing provided by the manufacturer.
6. Warehousing back-up by the manufacturer located nearby.
7. Ready parts availability.
8. Good warranties from the manufacturer.
9. The manufacturer to carry the cost of labour and parts needed to replace defective components.
10. Advertising and merchandising support from the manufacturer 9or at least an allowance for advertising).
11. Special discounts and deals.
12. Favourable credit terms.
13. Commissions on “house accounts”.
14. Commissions on direct sales by the manufacturer in distributor’s territory.
15. Manufacturer to assume the responsibility of keeping his other sales outlets from selling in distributor’s territory.
16. Minimum visits and “control” by the manufacturer.
17. Representative need supply only minimum information to manufacturer.
18. Freedom to handle other lines.
19. Freedom to price.
20. The right to terminate agreement when he pleases.
21. To have the manufacturer pay indemnities for cancellation of the agreement.
22. Security that the line will not be taken away from him once the product is established.
23. Cheaper packaging of goods to reduce bulk.
24. Dealing with one person in the home office.
25. Trips to the U.S. or to regional meetings.
26. Product liability coverage.

Obviously, no manufacturer will meet all these conditions. Companies whose probable sales in a given market are not going to be great or whose name is not internationally known may have to grant more demands than others in more favourable positions.

Firms seeking representatives in “representative short” markets will also have to yield more than they would where there are many experienced representatives. The same manufacturer may be quite happy to grant some for these requests in on e market, but not in another.

As you can tell there dozens of items to neogitate (we will cover cross cultural negotiations in our newsletter and/or in later blog posts). the key is to understand what they want and what you are willing to give.


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