Finding an agent

It is possible to find an agent through a number of sources: advertising; in Trade Journals; contacting government departments of trade in your own country or the country you wish to export to; consulting Chambers of Commerce, Consulates, Trade Associations, and banks. Letters to these organizations are routine, and the guide below gives you an indication of how these letters are laid out.

10.2.1

Opening

Tell the organization who you are.

We are a large manufacturing company specializing in...

We are one of the leading producers of...

You probably associate our name with the manufacture of chemicals/ textiles/business machines/heavy engineering...

10.2.2

Explaining what you want

We are looking for an agent who can represent us in ...

We would like to appoint a sole agent in Scotland to act on our behalf selling ...

We are trying to find an established firm to represent us in selling our products.

10.2.3

Closing

Close by saying that you would be grateful for any help that can be given.

We would be grateful if you could supply us with a list of possible agents.

We hope you can help us. and look forward to hearing from you.

Thank you in advance for your help, and we look forward to receiving your recommendations.

10.3

Offering an agency

Once you have found out the names and addresses of prospective agents, you can write to them direct. Below is a guide for manufacturers offering terms to a prospective agent.

10.3.1

Opening

Tell the agent how you obtained his name.

You were recommended to us by the Saudi Trade Commission in London.

Mr Milos Petric ot tne Jugobank Export Department wrote to us telling us that...

Explain who you are.

We are an established company manufacturing...

We are the leading exporters of...

We are one of the main producers of chemicals/steel/kitchenware/furniture/ chinaware/industrial equipment, etc.

10.3.2

Convincing the prospective agent

Convince the agent that the products you make are worth taking and will sell in his market.

As you can see from our catalogue, we can off era wide range of products which have attractive designs, are hard-wearing, light, easy to use, and fully guaranteed for one year.

You will notice that the prices quoted are extremely competitive for a product of this quality. We know there is a growing demand tor this product in your country and are sure that once our brand is established, it will lead the market.

The Zenith 2000 is the result of many years' research and development, and we know that once it is put on the Scottish market, it will overtake sales of all competitive brands.

10.3.3

Exclusive or non-exclusive agency

There are two types of agency: a sole or exclusive agency, when your agent will only be supplied by you in a particular area, and when he will not sell products that compete with yours; and a non­exclusive agency where there is no such undertaking. The agency contract explains the conditions on which the agency will be operated and what the rights and obligations of the agent and principal are.

We will not restrict the agent by offering a sole agency as we have found that this limits our own sales, and is sometimes awkward for the agent himself.

We are offering a sole agency, which will mean that you will not have competition from our products in the area specified in the contract.

We cannot offer an exclusive agency for Zambia at present. However, if the agency is successful we may reconsider a sole agency in the future.

It should be established whether you are going to deal with your agent on a consignment basis, when the agent will not own the products you send, but will sell them on a commission basis', or whether you want to supply the agent for him to re-sell to customers on his own account, in which case he will decide on resale prices and take the profits from his sales.

We generally do not deal on a consignment basis, but prefer our agents to buy our products on their own account. They usually prefer this method as it proves more profitable for them and allows them greater freedom in determining prices.

Note that the use of the term 'generally' in the above example leaves the offer open to negotiation.

10.3.4

Area to be covered

Make it clear what region or area the agency is for.

You will have sole distribution rights for the whole of France, which will give you an excellent opportunity to establish a wide range of customers.

Initially, we will give you a sole agency for the Lazio region, but if sales are successful, we will extend that to other regions.

As sole agents you will have no competition from our products in Northern Germany, therefore with effective selling you would be able to get a large return.

10.3.5