Knowledgebase

Managing Reseller and Distribution Arrangements Print

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Selling through others.

WHAT IT MEANS

Another business selling your product or service to their customers.

WHY IT APPEALS

Reach without your own sales capacity.

WHAT IT COSTS

Margin, and distance from the customer.

WHAT TO ESTABLISH

Whether the reseller sells in their own name or yours Who supports the customer Who sets the price What territory or segment applies

WHY PRICING CONTROL MATTERS

Resellers competing on price undermine the market for everyone including you.

WHAT TO ESTABLISH

Whether you can set or influence price.

WHY IT MAY BE RESTRICTED

Imposing resale prices is regulated in some jurisdictions.

WHAT TO OBTAIN

Advice on what you may require.

WHAT TO ESTABLISH ABOUT TERRITORY

Its boundaries, and whether it is exclusive.

WHAT TO ATTACH TO EXCLUSIVITY

Minimum volumes or performance.

WHY

Otherwise a territory is held and not developed.

WHAT TO PROVIDE RESELLERS

Training on the product Materials they can use Support when they need it Reasonable margin

WHY MARGIN MATTERS

Resellers sell what earns them most.

WHAT TO ESTABLISH ABOUT SUPPORT

Whether they support customers or escalate to you.

WHY

Support cost is frequently underestimated in these arrangements.

WHAT TO ESTABLISH ABOUT CUSTOMER INFORMATION

Whether you receive details of end customers.

WHY

Without it you have no relationship and no visibility.

WHAT TO MONITOR

Volume by reseller How they represent your product Customer satisfaction

WHAT TO ADDRESS

Misrepresentation, immediately.

WHY

Claims made by resellers are attributed to you.


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