Question

Topic: Strategy

Choosing An International Distributor

Posted by ilan.abadie on 125 Points
Hello,
How do I choose the best distributor for my products in an international market? what are the qualities a good distributor must have? what a good distributor must have? how do I make sure e is the right distributor for my products?
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RESPONSES

  • Posted by michael on Accepted
    Ilan,

    Financially strong. Good customer service/support. Basic stuff. You can usually find that out by asking around the industry.

    You can also work with independent sales people in those countries and ask for their input. There are plusses and minuses.

    Some countries (like Japan) you're better off will some sort of JV-ish program.

    Michael
  • Posted by CarolBlaha on Accepted
    It really depends on what you want the distributor to do. Do you want them to inventory (then they need financial strength and the ability to warehouse)? Are they calling on your target customers? Have you set performance goals and do they feel they are reasonable. Some distributors are good at placing POP's. others have a strong warehouse clientelle. What do you think of their sales staff and management. Does the culture of the org align with yours?

    Spend some time thinking of the important attributes you expect of a distributor. Then assign values to each, 10 is something you just cannot live without. The weighted scale of decision making is very good for biz decisions as this.
  • Posted by Frank Hurtte on Accepted
    Ilan,
    The World of Distribution is broken in many sub sectors.
    Some are experts at logistics, others at amalgamating orders, and still others at developing the product demand. Organizations who get these confused face issues from day one. For instance, if you hire a logistics based distributor, they generally will not do a good job at selling your product - but they can satisfy the demand once someone else creates it. And, in some instances, organizations must plan for a migration in their distribution channel.

    If you would like to spend a few minutes chatting about distribution strategies, contact me via my profile.

    Frank Hurtte
  • Posted by CarolBlaha on Member
    It might be helpful if you could tell us your product, and if its b2b or b2c.
  • Posted by ilan.abadie on Author
    Thank you all, the products we are talking about are accessories for the boating industry (rings, zippers for sail boat and boat covers). These are B2B products.
  • Posted by CarolBlaha on Accepted
    K, then you want either a distributor with dealer contacts or OEM. If its dealer -- warehousing and financial strength is impt. If its OEM, warehousing may not be as important-- the manufacturer may have specific specs.
  • Posted by ilan.abadie on Author
    Thank you all for your comments.
  • Posted on Member
    Carefully determine the needs of your product in the marketplace.

    You will need to sell your product to the distributor just as you sell to the consumer.

    You need a unique selling feature for your product, something that differentiates it from similar products the distributor is handling.

    Distributor percentages vary.

    Contact your local or regional trade association for guidance on contracts.

    Show the distributor your marketing campaign supporting the product or your track record with new products.

    Talk to someone who has used distributors and ask for a referral.

    Here's an online checklist for choosing a distributor:
    https://www.extension.iastate.edu/agdm/wholefarm/html/c5-161.html

    Marketing-Riot

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