What question should I ask to evaluate distributor for new market?
Answer:
- Financial stability - credit history, timeliness of payments, etc.
- Sales and marketing capabilities - size of outside and inside sales force, ability to generate leads, selling skills, technical competence, etc.
- Sales performance - past sales history for same or similar products.
- Knowledge of the local market - ability to accurately forecast future sales and identify changes in customer needs and expectations.
- Product mix - types of products carried, including competitive, supplementary and complimentary items.
- Growth potential - capability of distributor to keep pace with any anticipated growth in the local market.
- Inventory handling capabilities - warehouse space, ability to track turnover rates and other important statistics.
- Technology capabilities - possession of and familiarity with the technology required to do business together most efficiently.
- Management ability - viewpoint of distributor on human resources, planning, training, financial management, communication, etc.
- Succession planning - arrangements in place to continue the distributorship in case of retirement or death of distributor principal.
- Overall fit - how well your goals, operating philosophies and business practices mesh with those of the distributor. Other Questions and Answers: