There will be a moment in time when you will need to choose a distributor. That is, obviously, if you don’t have the financial strength or the capacity to settle yourself on a foreign country. Most companies follow a mixed Uppsala model for international expansion and will increase their implication with the country as they become more experienced, but on an initial phase, they will use a distributor.
What do you need to know to pick the right distributor? a few simple issues will help you in the process:
- Distributors seek the low hanging fruit. If your product needs a long time of market learning or the product will not generate sales soon, you will have a hard time to find someone
- Walk on the distributor’s shoes. Realize that where you see gains, he sees expenses. Where you see an enormous opportunity, he sees chances of failing. Give him the tools (margin, support) to overcome those feelings
- A distributor too big or too small might not be the right match. If you can, find someone which is the same size as you and has the same business philosophy. A small private company getting its products distributed by a big international company might not be a good match
So, pick your distributor as you would be picking your wife or husband. Being sure that you can build a future together