Enter Your Target Market
Selecting the right intermediary
You can obtain information about potential intermediaries from the Canadian Trade Commissioner Service in Canada and abroad, as well as from Canadian and foreign trade associations, business councils and banks.
Before you meet in person, talk to several firms and then carry out your due diligence to make certain they're reputable. You can also protect yourself by entering into a limited term trial agreement.
To evaluate a prospective intermediary in detail, use the questionnaire below.
- Size of sales force
- How many field sales personnel does the agent or distributor have?
- What are its short- and long-range expansion plans, if any?
- Will it have to expand to accommodate your needs properly? If yes, would it do so?
- Sales record
- Has its sales growth been consistent over the past five years? If not, why not?
- What are its sales objectives for the next year? How were they determined?
- Territorial analysis
- What territory does it now cover? Is it consistent with the coverage you're looking for? Is it willing and able to expand?
- Does it have any branch offices in the territory you wish to cover?
- Are its branch offices located where your sales prospects are greatest?
- Are there plans to open additional offices?
- Product or service mix
- How many product or service lines does it represent?
- Are they compatible with yours?
- Does it represent any other Canadian firms?
- Would there be any conflict of interest?
- Would it be willing to alter its present product or service mix to accommodate yours, if necessary?
- What would be the minimum sales volume needed to justify handling your lines?
- Do its sales projections reflect this minimum figure?
- From what you know of the territory and the prospective agent or distributor, is its projection realistic?
- Facilities and equipment
- Does it have adequate warehouse facilities?
- What is its method of stock control?
- Are their computers compatible with yours?
- What communications facilities does it have?
- If servicing is required, is it equipped and qualified to do so?
- If new equipment and/or training are required, to what extent will you have to share these additional costs?
- If necessary, would it be willing to inventory repair parts and replacement items?
- Marketing policies
- How is its sales staff compensated?
- Does it have special incentive or motivation programs?
- Does it use product managers to coordinate sales efforts for specific lines?
- How does it monitor sales performance?
- How does it train its sales staff?
- Would it be willing to share expenses for sales personnel to attend seminars?
- Customer profile
- What types of customers is it currently in contact with?
- Are its interests compatible with your lines?
- Who are its key accounts?
- What percentage of total gross receipts do these accounts represent?
- Principals represented
- How many principals does it currently represent?
- Would you be its primary supplier?
- If not, what percentage of its total business would you represent? How does this percentage compare with other suppliers?
- Promotional thrust
- Can it help you research market information?
- What types of media does it use, if any, to promote sales?
- How much of its budget is allocated to advertising? How is it distributed?
- Would you be expected to share promotional costs? If so, how will this amount be determined?
- If it uses direct mail, how many prospects are on its mailing list?
- What printed materials are used to describe its company and the lines it represents?
- If necessary, can it translate your advertising copy?
- Does it have its own website?