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Evaluating Agents or Distributors
Good foreign reps, just as not-so-good foreign reps, actively seek out new manufacturers to
represent. The key is to sort out those good ones for active evaluation. One of the best methods is
to ask the prospective foreign rep to complete a company questionnaire. Some reps will then
eliminate themselves by not responding.
Unsolicited foreign rep inquiries from the targeted top foreign markets should be seriously reviewed
and filed. A brief letter acknowledging that you have received the inquiry should be sent to the rep
as soon as possible, along with your list of required information, and general product literature
without pricing information. Carefully review the letter to make sure that you do not give an
impression that the foreign rep can perform any rep services, including market testing or evaluation,
even temporarily on your behalf. Do not send any samples. Do not make a quotation until you have
received answers to the questions you have about this company.
Remember that the rep is trying to communicate in your language, not his. Overlook grammatical
and sentence structure mistakes. Sometimes, the letter may look like a sixth - grader composed it.
A poorly-written business letter is not a reflection that the company is poorly run, unless you know
that English is their primary language.
The following is a list of commonly asked questions that can allow for a serious evaluation of the
potential representative. Select the questions you think are important, and add some of your own.
- General Company Information: Name and address; name of president or director;
phone, email and fax numbers; type of business i.e. agency, distributor, wholesaler; number
of employees; number of sales people; year company established; location of sales office;
geographic sales territory; annual sales for previous three years.
- Products Sold: List of major product lines; number of years carrying each line; percentage
of total sales for each product line.
- U.S. and Foreign Companies Currently Represented: Company name; key contact;
address, phone, email, and fax numbers; and products handled for each company.
- Bank References: Name of bank; account officer; address, phone, email, and fax numbers.
- Vendor References: Name of company; contact person; address, phone, email, and fax
numbers.
- Marketing Information: Trade shows regularly participating in; trade publications
advertising in; major companies called on regularly; methods they would employ to market
your product; level of expertise in your industry; after sales support capability; additional
information they would like to offer.
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