Home – New Forums Logistics Overseas Distribution – Pricing, agreements and exclusivity

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  • #991389
    Tsylv
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    Hi all,

    I own a skincare business and have been approached by an overseas distributor.

    It’s obviously a great opportunity for me, and I would like to begin discussions with them; however need to get my ducks in a row.

    First and foremost I need to establish pricing. I have been told that the expectation is approx 20-30% off wholesale … Any feedback on this would be much appreciated.

    I would also appreciate any feedback on setting exclusivity conditions. I want to set performance measures – is this normally done by measuring annual turnover?

    Thank you!
    TS

    #1181337
    Johny
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    I can’t offer you much in the way of pricing advice, but I will offer an opinion about overseas distribution.

    Without knowing your circumstances and from a general perspective, I have seen so many cases of people in your shoes. They get a request like this from overseas and it turns out to be a sham request, with the seller losing out somehow whether it be by sending stock, visiting there and getting stung, as examples.

    Running a small business, the first thing you need to ask is why would an overseas distributor want to do business with me and buy my products.

    You really need to explore the details of this intended distributor and find out as much about them as you can, who they are, what they do, how they can benefit you by stocking your products, examples of what they have done and are doing. That type of thing.

    I wasn’t going to write this because I usually get “why be so negative” type comments. But, over several years I have seen a lot of cases where people have been screwed and I have even saved a few from it, so I did anyway.

    Hopefully it is not this way, but just as you would conduct due diligence on an intended supplier, you should also do the same with an intended distributor.

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