Size and number of intermediaries

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The manufacturer has a choice between using one large intermediary or several small ones. Some studies show that the first type of partners, striving to take a leading position in the market, may overlook customer service issues.

At the same time, working with many small intermediaries gives the manufacturer more control over sales. Large partners, however, can store more stock and work with more complex products. When considering the types of trade intermediaries, it is necessary to highlight a number of other key differences:

does the intermediary purchase the products as property;

how the partner participates in generating demand for the product;

what set of functions does the intermediary perform?

Let's look at the main types of trading intermediaries.

Agent : deals with sales, but new zealand email list does not become the owner of the product and rarely finances transactions. Importantly, such an intermediary can collect market statistics.

Broker : works on behalf of both buyers and sellers. Most often, such a partner works with standardized products without becoming their owner.

Commission Agent : A general term for wholesalers or distributors who specialize in a narrow category of products and serve channel members closest to end customers.

Wholesaler : takes ownership of the product and performs a wide range of other functions.

After evaluating various options for a distribution channel, the company selects the optimal structure for it. The next stage is the direct management of the selected network. To do this, it is necessary to organize the selection and motivation of individual intermediaries, as well as an assessment of their work.

Size and number of intermediaries

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Various criteria can be used to select intermediaries. For example, Intel has developed a special questionnaire for this task:

Describe the history of your organization, tell about your employees, area of ​​activity, main achievements and financial position.

How deeply do you know the specifics of the markets we are interested in, and how can this be confirmed?

What are the economic characteristics of your region, and why do you think cooperation with us will be successful?

What payment terms for our product are suitable for you? What purchase volume and delivery times are acceptable for you?

Who exactly from your team will be engaged in sales of our products? Describe their qualifications and the specifics of the organization of work processes.

Which of our products are you particularly interested in and why?

Make a list of 10 companies that could be potential buyers of our products, indicating their profile of activity. (We guarantee that this information will not be used to contact them without your permission).

Tell us about the marketing strategy you plan to use to promote our products.

What kind of assistance, in what time frame and in what amount will you need?

Develop a tentative procurement (or consignment) plan and present its approximate financial indicators.


Download a useful document on the topic:

Checklist: How to Achieve Your Goals in Negotiations with Clients