Case
Our company has several regular clients in Germany, but the order quantity of everyone is not large. Since last year, the business of a new client has grown fast. Recently he asked us to grant him the qualification of a distributor. We also feel that there is no problem. However, this client proposes to sign an exclusive distribution agreement with us for the exclusive distribution of our products in Europe. Should we agree with it?
Suggestion
Before signing exclusive sales or exclusive agency agreement, you must understand the impact of these agreements. If you give a company exclusive distribution rights, all your goods sold to Europe must pass through it. Then you cannot supply the goods directly to your regular client. For domestic manufacturers, signing an agreement means exclusive distribution protection. This client may be more active in operating these products, perhaps making the market bigger. But there is another possibility. After signing the agreement, although you have given him a lot of support, his business has not improved much. The price is also low, but you can only sell through him. In this case, you may miss some development opportunities.
When signing the agreement, the responsibilities and rights of both parties should be clearly defined. If you grant them exclusive distribution rights, he should also give you equal preferential terms. This means that they can’t make inquiries with others. Unless you can’t offer these products, they can only be supplied by you.
The exclusive distribution agreement should agree on the number of sales per year or the growth rate of the business. clients cannot enjoy rights without fulfilling obligations. As for the validity of the agreement, you should not agree on a long validity period when signing for the first time. You can stipulate that if the cooperation goes well, the agreement can be (automatically) extended to the next year after confirmation by both parties.
Relatively, German clients are more rigorous. Once they sign the agreement, they will be seriously implemented. But you should be careful when signing this agreement with the Indo-Pakistani people. You should beware of the pitfalls of asking for a price cut after signing the contract.
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12. How to Get the Client’s Trust in the Short Term?
13. What Should I Do if I Have A Dispute with the Client?
14. How to Adjust Attitudes When Meeting Differences in Company?
15. How to Communicate with Foreign Customers?
16. What Should I Do if the Company is Filled with Intrigue?
17. What Reference Books Should Foreign Trade Newcomers Read?
18. How to Make Yourself Look More Professional?
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20. How Does the Salesclerk Calculate the Gross Profit?
21. How to Calculate the Export Tax Rebate?
22. How do Newcomers Develop Market Based on its Features?
23. How to Calculate the Export Cost Price?
24. How to Fill in the Vendor Registration Form?
25. What is the Format of A Letter of Authority?
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28. The Experience of Attending A Reverse Auction
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32. How to Make A Standardized Quotation?
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34. How Should We Arrange for the Visit of Executive Clients?
35. How to Prepare for the Quality Inspection?
36. What Should Be Noted When Eating Food with Customers?
37. How to Work as A Good Banquet Translator?
38. How to Reasonably Arrange the Time When Customers Visit?
39. How to Prepare for Visiting Clients Abroad?
40. How to Make the Minutes of the Meeting?
41. What If Clients Propose to Sign Exclusive Sales Agreements?
42. Is the Cost of the Hotel Paid by Customers or Us When Visiting?
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50. Is It Proper to Let Clients Ask Manufacturers to Solve Problems?
51. How to Agent Domestic Factories to Export Their Products?
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54. The Process and Cost Calculation of Agent Import Business
55. How to Straighten Out Relationships in the Agency Contract?
56. How Do We Show That We Need An Agent in the Contract?
57. How to Do Good Jobs of Agency Import Agreement Service?
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71. How to Handle Costs of Repacking Goods at Destination Port?
72. What If the Qualified Products Aren’t Enough to the Contract?
73. How to Handle the Return or Repair of Exported Goods?
74. What Should I Do with Insubstantial Complaints from Clients?
75. How to Handle Disputes in the Agent Export Contract?
76. What If Clients Ask Us to Replenish or Repair Products?
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80. What If the Goods Deformed the Container Before Shipment?
81. What If Customers Threaten to Punish Us for Quality Problems?
82. Why Do Customers Never Feed Back on Our Quality?
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84. What If the Forwarder Delay Delivery, Bringing Extra Costs?
85. What If Customers Have Placed Orders with Wrong Quotes?
