MAY 2005
Greetings & Salutations:
Over the past couple months, I received a number
of questions like this:
"I have come across a manufacturer in a friendly country
that manufactures a product that would appeal to the market here
in the U.S. -- Therefore, I contacted the manufacturer and expressed
my interest to be an agent for them in the U.S. -- They responded
by saying that they welcomed my inquiry and that they are in
fact, in need of an agent for the U.S. What I want to do
is get exclusive distribution rights for their product in the
U.S. -- What should my next step be?"
Here's a method you can use in a variety of applications ...
domestic and international.
Since the manufacturer has already expressed an interest in
establishing an agent in the U.S., all you have to do now is
"negotiate" a deal with them.
If I were doing it (as I have before), my next step would
be to write them a letter; something like this ...
Dear Mr. (use the name of the person who responded to your
inquiry):
Thank you for your kind response to my letter of (date).
In response to your letter of (date), my company would consider
it an honor to represent your product(s) in the U.S. (or, the
U.S. & Canada; or, North America) on an exclusive basis.
To that possible end, please provide us with your lowest possible
distributor prices, along with quantity breaks, quoted CIF (name
your nearest U.S. Port of Entry).
We have taken the liberty to enclose herewith a preliminary
contract for your consideration.
Thank you for your consideration. We are looking forward
to hearing from you at your earliest convenience.
Sincerely,
Along with the letter, enclose a contract for their consideration.
-- You may want to have your attorney assist you in creating
the contract in the proper legal form. -- The contact could be
something like this ...
EXCLUSIVE SALES AGREEMENT
This AGREEMENT is made on the dates signed below, by and between
(your name) of (your address); hereinafter referred to as (your
one-word name), and (their company name) of (their address);
hereinafter referred to as (their one-word name):
WHEREAS (their company) is the manufacturer of (name of product)
and is desirous of having said product distributed in the U.S.
(or, the U.S. and Canada; or North America); hereinafter referred
to as "territory," and,
WHEREAS (your company) is a distributor of such products in
the above stated "territory;"
IT IS AGREED by the parties above named, in consideration
of the promises and covenants hereinafter contained, as follows:
1. (Their company) grants to (your company) the exclusive
sales and distribution rights to (name the products) throughout
the above "territory."
2. (Your company) agrees to diligently sell and distribute
(name the products) in accord with the terms and conditions of
this agreement.
3. (Their company) agrees to turn over to (your company)
any and all orders and inquiries regarding stated product(s)
it shall receive from the "territory."
4. (Their company) will provide (your company) with
all technical data regarding the products; sales literature,
brochures, catalogs, etc. currently in use for the product(s);
and any and all future improvements (their company) may develop
relative to such product(s).
5. (Your company) agrees to buy the stated products
exclusive from (their company) and refrain from marketing similar
products in competition with (their company).
6. (Their company) agrees to maintain production capacity
capable of supplying the orders produced by (your company).
7. (Your company) agrees to sell a minimum of XXX units
(the quantity of products you plan to sell) of (their company)'s
product(s) during the first year of this agreement. Should
(your company) not sell XXX units within the first year, it shall
be to the determination of (their company) whether or not this
agreement shall be continued for additional years. This
agreement shall renew automatically for additional years so long
as a minimum of XXX units of the product are sold each year.
(Define what one unit of the product is to be.)
8. (Your company) shall have the sole discretion to
determine the methods of merchandising the products under this
contract.
9. (Your company) has the unfettered right to, and may,
assign its rights and obligations under this agreement to a third
party.
We, the undersigned, agree to the terms and conditions of this
agreement on the below written dates.
Signatures:
Note: Be sure the products you are going to be
selling can "legally" be imported into this country.
-- At one time, in the mid-1960s, I had the exclusive rights
to sell a "Magnetic Therapy" machine from Japan in
the U.S. Only problem was, the F.D.A. forbid its import
because of its unfounded medical claims. -- Today ... over 30
years later ... Magnetic Therapy has gained acceptance; without
F.D.A. approval. So, check the product out with the Department
of Commerce before you agree to sell something you can't legally
import into the U.S.
Although I, personally, have used letters and agreements similar
to the above over the years, I went to the works written by the
known authority on Exclusive Distribution Rights ... the man
the media call "The Millionaire Maker" ... my dear
friend, E. Joseph Cossman (may he rest in peace), for most
of the wording above (rather than digging through my own archives
... it was easier to find a draft copy in Joe's course and edit
it for you).
If you are really and truly interested in acquiring Exclusive
Distribution Rights to products ... and, more importantly learning
how to effectively market those products, once you have the exclusive
rights ... do yourself a favor -- go to your local bookstore
and buy any book you can find by E. Joseph Cossman. Then
again, if you wanna get the best of Joe's material, go directly
to his website at: http://www.cossman.com
and take a close look at his "Home Study Course" --
you'll be glad you did!
When you need stuff to sell -- on eBay or otherwise -- you
need the very best ...
Wholesale Sources!
Here is a little video that can teach you how to find almost
every wholesaler in your local area. -- Best of all, it
won't cost you a penny to learn how.
Once you know how, you'll find a whole new world of
wholesale sources for stuff you can sell ... on eBay, or anywhere.
I just found a wholesale source I've been needing
... right here in my local area. -- Didn't even know they were
here.
Dave Roman
wanted you to know that you can ...
FIRE YOUR BOSS - WORK at HOME
"Roman Reports" was a newsletter that I published
for 20 years. -- I'd send for many of those "get rich"
schemes and home business opportunities. The newsletter was a
summary of the information I sent for. Now I facilitate workshops
called "Fire Your Boss" This has been done for almost
5 years at local colleges and adult education classes. I decided
to put the information taught in the workshops on a CD.
You can also get it emailed to you in Adobe PDF format.
This CD teaches you creative techniques on how to come up
with new business ideas as well as improving your existing business.
There is also a lot of resource information for the person starting
a home business. As a bonus, you get a few free dinners on me!
(Well almost) The CD also includes names of companies that hire
Mystery Shoppers. You can sign up for one that "shops"
restaurants in your area. That way you get a free dinner and
get paid for it too.
As a bonus for buying this CD, you will get 2 updates emailed
to you for FREE . Twice this year I plan to update the information
in the report. New information will be added and existing information
will be updated (where necessary).
To get all the skinny, go to ... http://www.homebusinessguru.net
... Click on the Fire Your Boss link.
Well ... that's it for this month. -- In order to make every
issue responsive to YOUR needs, please send me your questions;
or tell me what sources or resources you need to build your business;
or give me any thoughts you want to share with your fellow members.
Believe it or don't ... I ain t a mind-reader. -- If n you
doesn't tell me what you need, I may never touch upon the information,
sources or resources you need.
This is your publication for you to use to your benefit ...
I am just your moderator.
Until next month, keep well ...
J.F. (Jim) STRAW
Grande Panjandrum
Can you stump the old master? --
Betcha can't!
Over the past 40 years (man and boy), I have made bundles
of money in direct selling, service contracting, wholesale merchandising,
entertainment (I was a professional Trumpet player, vocalist
& Radio Announcer), freight forwarding, import/export, retail
merchandising, warehousing, real estate, electronics manufacturing,
finder's fees, closeout merchandising, financial brokerage, business
consulting, steel fabrication, gold and coal mining, offshore
banking, mailorder, writing, and publishing. -- That being the
case ...
No matter what business you're in ... whether you're just
starting, well on your way, or at the top of the heap ... I've
probably been where you are, done what you are doing. -- So ...
Anytime you have a question about 'how' to do something in
your business - or - if you have any comments about anything
I've said in issues of this e-Letter; or if you want to add your
2 cents worth ... just "ask" me or "tell"
me.
Send your Questions, Comments or 2 Cents Worth
to ...
with "Question" - "Comment"
- or, "2 Cents Worth" in the SUBJECT.
If I, personally, don't have an answer to any question you
may ask, I will contact some of the professionals in your field
of endeavor (I will probably know one or more personally) to
get the real 'skinny' for you.
Note: If you want to ask a question anonymously
just tell me so when you send in the question. -- Nobody but
you and I will know who asked the question.
Copyright - 2005, J.F. (Jim) Straw. All rights reserved.