HCI Primary Services
Agent & Distributor Selection
Finding the right agent or distributor is one of the keys to export
success. Here are ten selection criteria that can make the difference
between success or misery:
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1. Conflict of Interest:
Does the Distributor represent another supplier of your product-type?
Unless that agency is about to be cancelled, and there are
no other conflicts of interest, pass it by.
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2. Long term Presence in Field:
Has the Distributor been continuously active, and focused,
in your Product area for a minimum of three years and preferably
five years? If not, he or she may well drain your resources
in fighting for a decent market position.
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3. Is the Distributor known to
be reputable, successful and serious? If not, it is better
to find another candidate or even leave the market empty-handed.
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4. Does the Distributor have
a leadership position (first, second or possibly third) in
the specific Products and market niches where the customer
base is the same as your own? If not, you are likely to get
marginal results or else expend a lot of supporting energy
in getting minimal sales.
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5. Does the Distributor have
excellent relations ("good" is often not enough)
with key decision makers in the customer base group? If not,
he is unlikely to be able to garner a decent share of the
market unless your product and pricing terms are exceptional.
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6. Does the Distributor maintain
an adequate, solvent, financial position and the ability to
open Letters of Credit and otherwise finance transactions
in less than the standard time? If not, does he qualify for
insured finance? If not, success is unlikely.
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7. Strong References: Can the
Distributor provide a list of three to five customers, two
banks and three U.S suppliers for references? It is essential
to check these out, and also get WTDR's or Dun and Bradstreet-style
reports while you're at it.
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8. Is the Distributor willing to
make your Product line a "High Priority" (and commit
to this in writing), as long as your prices, quality and service
are competitive? If not, it is probably not worth the effort
to sign him up. If he is, don't forget to include a Minimum
Performance provision in your contract. |
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9. Is the Distributor able to provide
your Product line a dedicated sales specialist with a good personal
reputation and strong sales performance? This salesperson should
be able to speak sufficient English to converse with people
at your plants and offices. |
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Is the Distributor willing to carry
at least 30 - 45 days of inventory and also buy in sufficient
quantity to make up full container loads (or some other kind
of minimum)? If not, the potential sales volume may be substantially
reduced and the Distributor may not have quite the necessary
level of commitment to assure a successful partnership. |
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"I find HCI to be a dependable company in their business dealings and one who has the interests of both buyer and seller in mind when they start a marketing project in Mexico. (We are) very pleased with the work of Mr. Hugh Henderson."
Robert P. Rich, Director, Virginia Dept. of Agriculture |
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