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Old 06-21-2004, 10:32 AM   #1
GooseMan
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Question Business "politics" questions....lemme know what you think of this...

As some of you know, I own a pro-audio equipment distributor. Currently, I import a band of DJ equipment from Spain, and I am the exclusive distributor of this brand in Canada. I sell to resellers (stores) and private customers.

My contract states that I am limited to my territory, Canada. There is an equivalent distributor in the USA.

Now, I do a lot of marketing online. I visit many DJ related forums and push my product. Most of these forums have members from the US, I only market the product at the forums to create product awareness, and hope it gains popularity...because, if it popular in the US, it will become more popular here.

Sometimes, members of the forums are interested in the product and ask to buy from me. With them being in the US, I always refer them to the US distributor.

99% of the time, the US dist. does not answer e-mails or phonecalls, or is just really slow to act and these customers want to buy from me (I try to match the US pricing). I still insist that they try the US dist. but they would rather buy from me (hey, I actually answer their questions and give them good service!). Plus, I'm in business to MAKE money, not give it away to someone who doesnt even try

So one one hand, I'm stuck because I do not want to break my contract, or piss off the US distributor. But on the other hand, I am the one doing all the work...marketing the product online, dealing with the customers, making the friggin sale etc...

I feel that I should call the distributor and ask for some comission from my "sales", but I know the guy will be too slow to respond to these potential customers and they will go elsewhere.

What the hell do I do?
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Old 06-21-2004, 10:35 AM   #2
SkirtBoy
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I would say you ask the US Dist. for some form of referral fee.
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Old 06-21-2004, 10:39 AM   #3
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I think that, when US clients come back to you saying that the US distro isn't doing dick for them, you refer them to Ecler customer relations because you'd be in breach of contract if you sold to them.

Tell them Ecler HQ will likely have a solution.

That way, you're not in breach of contract, Ecler can get a better US distro, and you keep a good name with everyone.


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Old 06-21-2004, 10:43 AM   #4
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I would talk with the company who makes the equipment and lay it out to them that the US distributor is not getting them very many sales. Find out if you can take over that role or if you share it and see who does a better job. As you stated you seem to have the customer base, and the US distributor does not. So if they want the sales than they should give you a shot or give you a referral fee for giving them to the US distributor.
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Old 06-21-2004, 10:46 AM   #5
gongzero
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Given the size of your operation right now, handling US sales large-scale would be a PITA for cutsoms brokerage and ForEx, not to mention a tax nightmare.

If the profit margins justify it, though, work with Ecler in "finding a solution to the US distro problem".


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Old 06-21-2004, 10:47 AM   #6
GooseMan
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Yeah...I e-mailed the head office about this...still waiting for a reply (the guy I usually deal with is leaving the company this week, so it may take a while for an answer).

I need to make some kinda money off of this. I even got a store in the US interested in the product. I contacted the store, gave them the US contact information, and they STILL havent heard from him. They want to buy from ME now!
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Old 06-21-2004, 11:01 AM   #7
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Move to the US and take over distribution. Make $$$$.
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Old 06-21-2004, 11:10 AM   #8
gongzero
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Quote:
Originally posted by cwb124
Move to the US and take over distribution. Make $$$$.
That's a whole other PITA ballgame.


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