The Marketing of Products in Canada with a Sales freelancer, Distributor or Importer
Commercial Agents and Distributors
A commercial agent will represent in Canada generally one or more businesses. Paid on commission is an effective and inexpensive way for a small business to be represented in a region or province.
Other benefits, billing in Canadian dollars, the proximity to a very important and large market ; the United States.
The points to be careful with
The company hiring a commercial agent needs to ensure that the agent is motivated to represent the quality of producer’s goods to his/her customers. The company behind must, however, provide training, technical support, and all the equipment necessary for a good representation whatsoever. This means samples, promotional tools, etc. Canada is a big country; it is wise to choose a an agent close to the potential buyers.
Motivating an Agent
In addition to the commission, the agent needs to feel supported; the company must ensure proper support and proper guidance.
The Commission Structure
The fee is based on net sales business related to the territory covered by the agent. It varies by industry, for example in fashion sector; the commission rate is 12 to 15%. In the food industry, it is from 5% to 10%. Most commercial agents expect to work on a commission based on two levels. Officers receive a commission for sending contracts and a higher rate when purchases are made from own stocks of the local agent.
Breach of Contract
Breach of contract can have different clauses that are established during negotiations and may vary. However, in some industries, associations were formed to protect the agents and pre-established contracts were created.