Agents and distributors can help you get your products known in other countries by adding their local knowledge and contacts to your products. There are apparent differences between agents and distributors, which we have discussed in other places. The main difference is that a distributor will buy your goods, while an agent will usually put you in touch with a buyer. There are different kinds of industrial CBI agents in Saudi, but this is the main difference. Once you have decided what is best for your business, the next step is negotiating their contracts and figuring out how to get the most out of the relationship for both sides.
Here are some things you should consider, such as:
Exclusive or Non-Exclusive
An exclusive deal means no other agents in a particular territory. This can be good for the agent because they will not have to compete with other businesses in the area. Still, it makes you dependent on their sales.
If you agree to an exclusive deal, make sure it has goals so you can measure performance and keep the sale going only if the goals are met within a certain amount of time. If the goals still need to be met, you can keep them on, but they will not be your only Industrie CBI agents in UAE. You can hire more agents if you want to, or you can end the contract.
Marketing
Think about what you can do to help them sell your products and how closely you want them to follow your brand’s rules. You should give them some leeway to account for regional differences. Still, in the end, they represent your business, so clear rules are needed.
Service to Customers
It is clear who performs a service and at what level it is set. Set up clear service level agreements that they should follow. Consider including penalties for poor performance or different levels of care, such as first-line support with a way to reach the manufacturer.
Intellectual Property
Set up from the beginning that the intellectual property (IP) in the products or ideas belongs to you and that any shared IP to sell or support the development in the chosen market only exists while the contract or agreement is in place. Your contracts should make this clear.
Training
How much training do you need to know your products well and how to sell them? The more help you give them, the better they will be able to make sales. You might also be asking too much of them if you don’t give them a chance to learn the right skills and gain the right knowledge.
Practical Considerations
How long will this deal last? What kind of money will they get? When are they going to be paid? What would it mean to break the agreement, and what would happen if someone did? When can contracts and goals be looked at again and, if necessary, renegotiated? All of these things are important to agree on.
Creating a successful partnership
Think of your relationship with your Industrie CBI agents in UAE. You will succeed most if it works out well for both of you. By making sure, everyone knows what to expect and giving the right kind of help; the contract is set up to work well from the start.
