Posted on July 7, 2010.
What's better: Sales representative or a distributor? The lack of understanding between the agent / distributor and often leads to the main sales effort that takes a long time, not effective, and sometimes even disastrous for your enterprise.
After determining the target market you want to expand your business abroad and has done a thorough investigation , you should consider the commercial chain that you create in order to deliver the goods to the end user.
Like most business Thy will be looking for a local representative to help you sell your product abroad. But beware, a long-term commercial contract can dramatically increase your sales or reduce it to zero!
The two most common types of agreements between intermediaries and export trading partners are selling products through a distribution channel or sales agent.
Both methods have their advantages and disadvantages and you may find useful to consider the following criteria to make the final decision:
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size marker. If the market is small, a distributor may be sufficient. If it is large and has a wide consumer trends from a sales agent or a sales advisor will be useful to help you implement the best strategy in a particular region.
market experience. Each country (especially if we talk about emerging markets) has its own legal personality and cultural peculiarities business. If you do not know that it can be difficult for you to establish a strong commercial presence in this region.
export experience. If you've sold your products to several countries on a regular basis, it will be easy for you to access new markets, but with little business experience i-you will probably need help to make your first steps abroad.
Product Type. For the "industrial products, it is always better to have a trusted and qualified representative they will work in several areas. At the same consumption goods such as food or time of the electronics are better sold through several distribution channels.
type of country. If you want to export to neighboring countries or speak the language of your new business partners will make it much easier for you to start. An emerging market can be very attractive, but it also has many hidden threats you can not even aware. Make sure you learn as much as possible about your customers, their culture, their economic solvency, etc. and prepare for unexpected situations.