Agent/Distributor Selection Checklist

Choosing a Distributor - Factors to Consider

Size of Sales Force

• How many field personnel does the distributor have?
• What are their short and long term expansion plans, if any?
• Would they need to expand to accommodate your account properly?  If so, would they be willing to do so?

Sales Record

• Has their sales growth been consistent?  If not, why not?  Try to determine sales growth for the past five years.
• What are their sales objectives for the next year?  How were they determined?

Territorial Analysis

• What territory do they cover?
• Do they have branch offices in the territory to be covered?  If so, are they located where your sales prospects are greatest?
• Do they have plans to open additional offices?

Product Mix

• How many product lines do they represent?
• Are these product lines compatible with yours?
• Would there be any conflict of interest?
• Do they represent any other Australian firms?  If so, which ones?
• If necessary, would they be willing to alter their product mix to accommodate yours?
• What would be the minimum sales volume needed to justify handling your line?  Are their sales projections realistic?

Facilities and Equipment

• Do they have adequate warehouse facilities?
• Do they have computers?  If so, are they compatible with yours?
• What communications equipment do they have?  Fax, modem, etc.

Marketing Policies

• How are the sales staff compensated?
• Do they run motivation and incentive programs?
• Do they use product managers to co-ordinate sales efforts for specific product lines?
• How do they monitor sales performance?
• How do they train sales staff?

Customer Profile

• What type of customers are they currently contacting?
• Are their customers' interests compatible with your product line?
• Who are their key accounts?
• What percentage of total receipts do these key accounts represent?

Promotional Trust

• Can they assist in compiling market research information to be used in making forecasts?
• What media, if any, do they use to promote sales?
• How much of their budget is allocated to advertising?
• Will you be expected to contribute funds for promotional purposes?  If so, how will the amount be determined?
• What type of material do they use to promote their company?

Source:  Trade New Zealand and Western Economic Diversification Canada, Ready for Export: Building a Foundation for a Successful Export Program;  www.bevan-ashford.com - UK site.