Signed and Retreat Unable 🔏 | 10 Things to Know First as Distributor🔍📜

Today we want to make a little trick 🤏🏻✨ before we sign a contract as a distribution butor or sales representative with an international brand that comes from direct experience.

1️⃣ Territory (Sales Zone)

• Clearly, Thailand exclusive or non-exclusive

• If exclusive → is there a minimum peak condition?

• Can he appoint a distributor in the same country?

• Can you sell cross-border or ban

Many people miss exactly the word "exclusive," but there is a clause that makes him cancel the exclusivity very easily if the peak is not reached.

2️⃣ Minimum Purchase / Sales Target

• How much is the minimum amount per year?

• If not, what happens (fine, disqualified, downgrade to non-exclusive?)

• Target realistic with the Thai market

If the balance is set too high, it may be squeezed to stock until the cash flow is broken. Talk well.

3️⃣ Payment Terms

• 100% payment before shipment or with credit terms

• Which currency (USD? KRW?) Who takes the exchange rate risk?

• Is there a penalty for slow pay?

This cash thing hits us straight, especially if we have to stock the goods.

4️⃣ Pricing Control.

• Can you sell the price yourself?

• Does he control the MSRP?

• Can you sell online / marketplace?

• Do not sell below his price?

If the price is very dark, the margin will be so thin that the marketing cannot be done.

5️⃣ Marketing & Branding

• Who issued marketing?

• What support does he provide (photos, content, training, sample)?

• How often do you need to report?

Do not assume that the brand will help fully if there is no write = no, but in this case, many brands can use pictures / videos, but also have a period of use, which may be a year-to-year contract.

6️⃣ Inventory & Returns

• Waste / defect. Who's responsible?

• Can I return the goods?

• Is there expiry or model change risk?

This is very important if it is a product with a fast-changing version update or trend.

We also found damage caused by the Shipper, which we sent the matter, they just acknowledged and informed that this would not happen again, but we did not receive the claim or the claim. Fortunately, we bought the insurance and the shipping in this case, so we got the refund.

7️⃣ Term & Termination (Very Important)

• How many years of contract?

• For what reason can he cancel?

• Notice how many days

• If you give up the contract, what do the rest of the stock do?

8️⃣ Upgrade Path is Official Distributor.

Here's the point, to be clear:

• How is "Official distribution or" defined in the document?

• How much do you need to upgrade?

• How many months?

• Is there a written commitment or just a verbal?

If it is not written = it does not exist legally.

From what we found, it will be an official distribution or here about whether the organization is trustworthy and who the customer or the end-user is.

9️⃣ Intellectual Property

• What level of logo / brand assets can be used?

• Do localized content?

• Must approve every piece?

If you are planning a serious market in Thailand, you must have clear rights.

🔟 Governing Law & Dispute

• Which country is the law used?

• Where is the court or arbitration?

• If it's Korea / China, are you ready to take risks?

The cost of cross-country disputes is very high, which is traded with foreign countries as we have ever encountered. If there is a lawsuit, it will go to the court of the country that sells it to us.

👩🏻‍💼 If you do in an industry that imports new products that are not available in Thailand like us, we recommend that during the first year you should talk to the brand to understand our angle of marketing in Thailand. During the first year, we and our customers get to know your products first. Try talking to the brand before signing the contract.

# Marketing ♪ Should know # Investment knowledge # Office worker # Knowing first is safer