When exporting a product, it is a smart practice to ask a distributor what they anticipate selling in the first year. Then, request that their first order be 20% of that anticipated volume, prepaid, which allows them the opportunity to have exclusivity. You should expect the balance of projected sales to be ordered during the rest of the year (preferably in quarterly periods), with each subsequent order minimally the size of their first one. This allows you to monitor and exercise good control over the distributor’s sales.
Source: “10 Deadly Sins To Global Sales Failure”
Original Publication: MarketingProfs
Subjects: International, Marketing / Sales