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LATAM · CARIBBEAN · U.S.
EIDANPARTNERS
Insights ·

The first distributor to reply is rarely the best one

The most enthusiastic counterparty is often the one with the emptiest calendar. Enthusiasm and capability are not the same thing, and the gap shows up in year two.

A company opening the U.S. market writes to a list of possible distributors. Most do not reply. One answers the same day, with enthusiasm, and offers to meet that week. That is usually the one that ends up signing.

The speed of that reply is information. It rarely means what it appears to mean.

Why the most available is not the most capable

A distributor with a full portfolio and a busy team has little reason to answer an unknown brand quickly. The quarter is already covered. The one who replies within the day usually has spare capacity, and spare capacity has a cause.

That cause can be a good one: a contract that ended, a new line they want to build, a decision to grow. It can also be a lost flagship representation, a collections problem, or a customer base that looks nothing like yours. Enthusiasm does not distinguish between them.

What to check before granting exclusivity

Three concrete things come before enthusiasm: which brands they carry today and for how long, which end customers they actually reach rather than which ones they claim, and who inside their structure will carry your line in their annual target.

The last one is missed most often. An exclusivity signed with management does not oblige anyone on the sales floor to sell your product. If your line is not in someone's quota, it goes into the catalog and stays there.

The cost of undoing the agreement

A badly granted exclusivity is not fixed in a conversation. It is fixed with notice, a term and sometimes a payment. Meanwhile the market is blocked: you cannot appoint anyone else, and the incumbent is in no hurry.

That is why choosing a counterparty is treated as an investment decision, not as paperwork that follows the decision to enter. Identifying and profiling the candidates, what they carry, who they sell to, how they pay and what their own customers say about them, costs a fraction of what it costs to get out of the wrong agreement.

The first to reply may well be the best. That has to be verified, not assumed.

Related serviceMarket expansion →

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