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Choosing a ForeignRepresentative or DistributorEach company should tailor a checklist to its ownneeds. Key factors vary significantly according tothe products and countries involved.Size of Sales Force• How many field salespeople does therepresentative or distributor have?• What are the short- and long-range expansionplans, if any?• Would the representative company need toexpand to accommodate your account properly?Would it be willing to do so?Sales Record• Has the sales growth of the representativecompany been consistent? If not, why not?Try to determine its sales volume for the past5 years.• What is the average sales volume peroutside salesperson?• What are the sales objectives of therepresentative or the distributor for next year?How were they determined?Territorial Analysis• What sales territory does the representativecompany now cover?• Is the sales territory consistent with thecoverage you desire? If not, is the representativeor distributor able and willing to expandthe territory?• Does the representative company have anybranch offices in the territory to be covered? Ifso, are they located where your sales prospectsare greatest?• Does it have any plans to openadditional offices?Product Mix• How many product lines does the representativecompany handle?• Are these product lines compatible with yours?• Is there any conflict of interest?• Does it represent any other U.S. companies? Ifso, which ones (names and addresses)?• Would the representative company be willingto alter its present product mix toaccommodate yours?• What is the minimum sales volume that therepresentative or distributor needs to justifyhandling your lines? Do its sales projectionsreflect that minimum figure? From what youknow of the territory and the prospectiverepresentative or distributor, is theprojection realistic?Facilities and Equipment• Does the representative company haveadequate warehouse facilities?• What is the method of stock control?• Does it use computers? Are they compatiblewith yours?• What communications facilities does it have(fax, modem, e-mail)?• If your product requires servicing, is therepresentative company equipped and qualifiedto perform that service? If not, is it willing toacquire the needed equipment and arrange fortraining? To what extent will you have to sharethe training cost? Are there alternative ways inthe market to service the product?• If necessary and customary, is the representativeor distributor willing to inventory repair partsand replacement items?70 U.S. Commercial Service • A Basic Guide to Exporting
Marketing Policies• How is the sales staff compensated?• Does the representative company have specialincentive or motivation programs?• Does it use product managers to coordinatesales efforts for specific product lines?• How does it monitor sales performance?• How does the representative or distributor trainits sales staff?• Would it pay or share expenses for itssales personnel to attend factorysponsoredseminars?Customer Profile• What kinds of customers is the representativecompany currently contacting?• Are its interests compatible with yourproduct line?• What are the key accounts?• What percentage of the total gross receipts dothose key accounts represent?Principals Represented• How many principals is the representative ordistributor currently representing?Promotional Thrust• Can the representative company help youcompile market research information to be usedin making forecasts?• What media does it use, if any, to promote sales?• How much of the budget is allocated toadvertising? How are those funds distributedamong various principals?• Will you be expected to contribute funds forpromotional purposes?• How will the amount be determined?• If the representative or distributor uses directmail, how many prospects are on themailing list?• What type of brochure does it use to describethe companies and products that it represents?• If necessary, can it translate youradvertising copy?• Does the representative have a website topromote the product?• Can it provide product demonstrations andtraining if needed?• Would you be its primary supplier?• If not, what percentage of the total businesswould you represent? How does this percentagecompare with other suppliers?Chapter 5: Methods and Channels71
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A BASIC GUIDE TOEXPORTINGThe Offici
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export.gov/basicguideLibrary of Con
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Table of ContentsChapter 1: Introdu
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global GDP and 30 percent of global
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A GEE might consist, for example, o
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Success StoryPedaling Through Trial
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Chapter 2Developing anExport Strate
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specified in the EAR under a specif
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All U.S. businesses have many ways
Page 23 and 24: Answer these 11 questions:1. Which
Page 25 and 26: Product or Service• What need doe
Page 27 and 28: Sample Outline of anExport PlanTabl
Page 29 and 30: 5. Current Trends and Practices•
Page 31 and 32: 16. My Product’s Harmonized Code
Page 33: Success StoryDownloading NewInterna
Page 36 and 37: This last advantage is especially i
Page 38 and 39: Gathering and evaluating secondary
Page 40 and 41: Drawing ConclusionsAfter analyzing
Page 42 and 43: United Nations Statistical Yearbook
Page 44 and 45: Private-Sector Product and Industry
Page 46 and 47: Success StoryHelping Feed the World
Page 48 and 49: Chapter 4Export AdviceIn this chapt
Page 50 and 51: Some of the more important services
Page 52 and 53: the important difference that the b
Page 54 and 55: at no cost to the small business ex
Page 56 and 57: A commercial bank can perform many
Page 58 and 59: location and construction of manufa
Page 60 and 61: To prevent reverse engineering in C
Page 62 and 63: We are agnostic on the question of
Page 64 and 65: Distribution ConsiderationsHere are
Page 66 and 67: Often, the first company does not p
Page 68 and 69: your ability to terminate agreement
Page 70 and 71: Once your company has prequalified
Page 74 and 75: Success StoryDon’t Wait—Innovat
Page 76 and 77: Chapter 6Finding QualifiedBuyersIn
Page 78 and 79: companies are available from many p
Page 80 and 81: Trade Fair Certification Program (e
Page 82 and 83: Millennium Development CorporationT
Page 84 and 85: Who Is the “Ideal”International
Page 86 and 87: Scores of new franchising concepts
Page 88 and 89: Success StoryCast a Wide Net to Cat
Page 90 and 91: Chapter 8Preparing YourProduct for
Page 92 and 93: You can also contact the Office of
Page 94 and 95: training seminars, or DVDs. Zeigler
Page 96 and 97: The ChallengeSmith first looked tow
Page 98 and 99: encompasses services in transportat
Page 100 and 101: give U.S. companies a competitive e
Page 102 and 103: Success StoryRecruiting New Franchi
Page 104 and 105: Chapter 10International LegalConsid
Page 106 and 107: For more information from the U.S.
Page 108 and 109: When goods enter a bonded warehouse
Page 110 and 111: under the UCC. Older works may also
Page 112 and 113: Trade names are also protected on a
Page 114 and 115: knowledge, in turn, promotes furthe
Page 116 and 117: prevent him or her from obtaining a
Page 118 and 119: Business-to-Consumer E-Commerce Wor
Page 120 and 121: Because such a website is often sta
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An online exporter may choose to pu
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important to identify and incorpora
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other business contacts) options re
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Success StoryGrowing Strong withInt
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Chapter 12Shipping YourProductIn th
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One popular method of shipment is t
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Certificate of ConformityRequired b
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The cost of the shipment, delivery
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To learn more about comprehensive r
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China but needed to do a lot of hom
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price is too high, the product or s
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CompetitionIn the domestic market,
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Commonly Used TermsIt is important
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Success StoryAligning Innovationwit
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Chapter 14Methods ofPaymentIn this
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Letters of Credit and Documentary C
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You must provide documentation show
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associated with open-account trade
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payment. This is because the export
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ut they were willing to make the sm
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• The need for preshipment financ
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Thus it is in your best interest to
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to support ongoing export sales or
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To be eligible, a business must hav
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Medium Enterprise Department and OP
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Success StoryManufacturingInternati
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Chapter 16Business TravelAbroadIn t
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Planning an ItineraryTravel agents
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Business Culture TipsAlways answer
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Gift giving is an important part of
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particularly intense issue. So the
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Here are a few suggestions.• Expe
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Building a Working RelationshipOnce
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negotiations and agreements with it
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Chapter 18Rules of Originfor FTAsIn
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5. Determine if the foreign content
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The original ROOs are listed in an
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Example Rules of OriginCombining Mu
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Israel, Jordan, Morocco, Bahrain, a
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The importer may ask the exporter w
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Generic CertificatesIf a good does
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Architectural Association of Kenya
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Appendix A: Glossary of TermsAdvanc
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Export-Import Bank of the United St
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Market SurveyReport that provides a
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Appendix B: Definitions of Abbrevia
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Appendix D: FormsHere, you will fin
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228U.S. Commercial Service • A Ba
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Tech International1000 J Street, N.
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COMMERCIAL INVOICESELLER: INVOICE N
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Copyright © 1998 UNZ & CO.SHIPPER/
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DEPARTMENT OF HOMELAND SECURITYU.S.
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PACKING LIST© Copyright 2001 Unz &
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1a. U.S. PRINCIPAL PARTY IN INTERES
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U.S. $13220of this FIRST of Exchang
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IndexAA2ASee account-to-account (A2
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Global Entrepreneurship Ecosystem (
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Swinko, RonSee Jet IncorporatedSzuc
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International OfficesAfghanistanKab
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