经销商谈判之--利润分配

经销商谈判之----利润分配
BY VIAN--金丰

Dear XX,

Hope you had a great celebration with your lovely family.

After I handed the report of our visit, today we had a meeting together with our director and our finance management. Firstly I reported the options we discussed in Coimbatore. One is our company directly set branch office in South India and hire local people to do the market. The other one is we only sell machines to you just as dealer. But we could not reach an agreement in the meeting. So we change another way to think about this issue.

Then we discussed about our target for south Indian market. We all agree that our targets are brand and sales amount. Both of them are long term target, and brand is even more important than sales amount.

For information sharing, we resolved the sales process into small parts. And we resolved the percentage into these small parts as below:
Proportion
Market sales 20.00%
Product quality control 20.00%
Market promotion 14.00%
Technical supports and designs 10.00%
Installation and Machine Adjustment 10.00%
Aftersales service guarantee 10.00%
Market Protection 5.00%
Funds tie up 3.00%
Export process and documents 2.00%
Import process 2.00%
Product updates and information 2.00%
Continuous cost control 2.00%
Total ratio 1

And then we found some parts are agent’s advantages and some parts are our advantages. So we think about if we work with agent, the portion into two parts:
JinFeng Agent Proportion
Market sales 0.00% 20.00% 20.00%
Product quality control 20.00% 0.00% 20.00%
Market promotion 7.00% 7.00% 14.00%
Technical supports and designs 5.00% 5.00% 10.00%
Installation and Machine Adjustment 5.00% 5.00% 10.00%
Aftersales service guarantee 5.00% 5.00% 10.00%
Market Protection 5.00% 0.00% 5.00%
Funds tie up 3.00% 0.00% 3.00%
Export process and documents 2.00% 0.00% 2.00%
Import process 0.00% 2.00% 2.00%
Product updates and information 2.00% 0.00% 2.00%
Continuous cost control 1.50% 0.50% 2.00%
Total ratio 0.555 0.445 1

From above charts, we can see each of us will cover about 50% works(Funds tie up will depends on the payment term. So almost half for each party). And our finance calculated the total cost and showed the profits in the meeting. It showed despite some initial costs, the total profit is about 15%. If share with agent by the ratio, each of us will get 7.5%. But for the new beginning, we also understand market sales will be much more important, so we can agree to give agent more profits said 10%. And in the future some other factors will influence more and more and adjustment will be also made accordingly.

This is our opinion for the cooperation. Pls share your ideas with us and if anything we missed pls kindly tell us.

For establishing a new brand, it is long term and win-win process. A good supplier and a good agent are both very precious. But if we meet each other, we are really lucky. Trust and being trust are all happy things. Hope we are luckily enough to meet the lucky you.

My best wishes for all your family members. And I hope to hear from your kind response. Thank you!

Vian