| Finding a good overseas distribution partner is one | | | | outsourced assistance? Do they have a customer |
| of the most important decisions you can make | | | | service department? How big is it, how good is it? |
| when starting to sell internationally. Choosing the | | | | Find out. Dig. |
| right one is as much an art as a science but you | | | | 4. See if they are able to be a "marketing |
| must do your due diligence. We strongly suggest | | | | company" for your product, not just a sales |
| you get assistance when making these | | | | company. In most cases you want a distribution |
| determinations because these are the sorts of | | | | partner that will help develop the brand. Some |
| questions that need to be asked and answered: | | | | distribution partners simply want to sell and do |
| | | | nothing else. Make sure you know which type of |
| 1. Name, address, ownership structure, size, | | | | distribution partner they are, before you go in the |
| location address and office size, warehousing | | | | relationship. |
| capability, sales, number of employees, structure | | | | 5. What are their margin requirements? Can you |
| of organization, how financed, profit for last 3 | | | | reach the prices you need in the market place |
| years. Ask to see financials. | | | | with their margin in between? |
| 2. Are they able to sell to all or just some of the | | | | 6. Do they want exclusivity? If so are they |
| right customers for your product? Probe them to | | | | prepared to sign an agreement with minimum |
| see where they propose selling your product. | | | | order quantities? |
| Have they experience selling to these customers? | | | | Finding, vetting, negotiating with and setting up a |
| Are they selling something similar already? What | | | | good Distribution Partner is a crucial element to |
| about those channels that they don't sell to. How | | | | the success of your entry into overseas markets. |
| will they handle them or will they just ignore those | | | | $10,000 invested up front can save you |
| channels? If they sell competing product, how will | | | | $100,000-$1000,000 down the road, in terms of |
| they handle the conflict? | | | | lost sales and costly mistakes. If you need help |
| 3. If your product needs service (physical service | | | | ask for it. Use a company like ours, who will not |
| like a washing machine, or customer service, like | | | | only identify the distribution partners you need but |
| software), how will they handle that? If it's | | | | ask the difficult questions. |
| electronic, do they have a service department, or | | | | |