21-05-2009, 12:22 AM
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#1
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Join Date: Jul 2008
Location: Malta
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What will it take to get exclusive distribution rights?
What will it take for a company to accept someone as an exclusive distributer of one of their products ?
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21-05-2009, 04:44 AM
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#2
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Join Date: Oct 2007
Location: UK
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Re: What will it take ...
Long trading history, decent storage facility with organised logistics, enough capital to warrant a major stock holding.
Depends on the products - a few that I have approached in the past require MOQ of £100k per month, some have been as little as £100k per year.
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21-05-2009, 06:27 AM
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#3
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Join Date: Apr 2007
Location: 60DBP
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Re: What will it take ...
Depends, for some small, specific niche items, regular/monthly order of £1000 could give you an exclusive territory while for other - £1M won't be enough.
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21-05-2009, 01:53 PM
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#4
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Join Date: Apr 2009
Location: UK
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Re: What will it take to get exclusive distribution rights?
A friend of mine managed to get exlusive rights to sell spare parts for R/C helicopters, not the battery ones but more expensive fuel, petrol or diesel I think. Anyhow he imported from Hong Kong and was really p**ing off other sellers due to his low prices. He soon became a power seller. I dont know the exact Terms but I know he wouldn't have been shelling out a lot of money straight off, probably nearer or less than Andy777 guesstimate of £1000.00 a month. Anyone looking for a niche might want to try this area if your into this, I have no idea about it myself, might be saturated or might be potential.
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21-05-2009, 07:47 PM
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#5
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Join Date: Jul 2008
Location: Malta
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Re: What will it take to get exclusive distribution rights?
I got an answer from a guy that sells orbitwheels that he is interested in making me a distributor for his product in my country, I'm wondering how much capital is needed, or could I just for example take not of how many orders are needed after I go to shops and sell and then import ?
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21-05-2009, 07:57 PM
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#6
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Join Date: May 2007
Location: UK
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Re: What will it take to get exclusive distribution rights?
There is no real answer. It is what the manufacturer requires.
I have found most chinese companies will require an initial large investment for stock and then x amount per month from month 3 - 12.
For companies closer to home you have to have a proven route to market i.e. deals with distributors already in place. Also a marketing budget usually running in to 6+ figures.
If the product is in demand you coulsd well be asked to tender (in other words bid with hard cash to buy the rights) to get the distribution.
Last edited by greedyboy; 21-05-2009 at 08:00 PM..
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