PrioTech LLC is distributing foreign companies’ products in UAE and in Asia and provides to foreign, or UAE companies, which have particular interest in specific products a full service of import/export.
A sales agent acts on the foreign company behalf in the overseas market by introducing the foreign company to customers; product supply and invoice are direct between the foreign company and the local customer. A sales agent acts on the foreign company behalf in the overseas market by introducing the foreign company to customers who it supply and invoice direct. When we are acting as sales agent, we get a commission for any sales. The key benefit of using an overseas sales agent is that our partners get the advantage of our extensive knowledge of the target market.
This solution provides several advantages such as:
- Our partner avoids the recruitment, training and payroll costs of using their own employees to enter an overseas market.
- Using an agent allows our partner to maintain more control over matters such as final price and brand image, compared with the other intermediary option of using a distributor.
The disadvantages of using a sales agent are mainly:
- Our partner remains responsible for shipping and other trade related logistics, although we are able to help.
- Our partners need to specify in our contracts if they need us to credit check their customers for them.
- Arrangements must be made to allow access to our partner’s sales ledger as part of the commission payments process.
- After-sales service can be difficult when selling through an intermediary.
We buy goods from our partners and then take full responsibility for selling them on the UAE market.
This solution provides several advantages for our partners:
- The main advantage to use us as a distributor is simplicity. We enable our partners to access UAE market while avoiding logistics issues and many trade related risks.
- We are usually responsible for the shipment of goods and the accompanying customers’ formalities and paperwork.
- It is easier for us to establish reputation and contacts list to introduce a new brand to the market than it would be for our partners.
- We generally spend on marketing support our sales effort, although we expect our partners to make a financial contribution.
- We also offer credit facilities for our potential customers.
This solution can provide some disadvantages for our partners:
- In return for taking on our partners trade related risks and burdens, we expect heavy discounts and generous credit term from our partners
- Our partner may lose control of the way their products are marketed and priced.
- In our Sales agent contracts, our partners can use the commission structure to motivate us; there is no similar mechanism with our distributor’s contracts.
- When we are under a distributor contract, we demand a long period of exclusivity.
To help our partners in their businesses, we also provide them import/export services.