Set Clear Terms of Engagement [dealerbanao]

Once you identify potential distributors, the next step is to set clear terms of engagement. Negotiating terms in the initial stages can prevent delays and disputes down the line. Some of the key factors to discuss include:

Pricing Models: Decide on wholesale pricing and any discounts that distributors will receive.
Exclusivity: Will the distributor be the only one in a region or market?
Payment Terms: Establish clear payment schedules, credit periods, and penalties for late payments.
Marketing and Promotion: Discuss the level of involvement the distributor will have in marketing and promoting your products.
Setting these terms from the start ensures that both parties know what is expected, allowing the distribution setup to happen quickly and efficiently.