The Marketing of Products in Mexico with a Sales freelancer, Distributor or Importer
Commercial Agents and Distributors
Distributors deal directly with foreign suppliers. Therefore it is necessary to use the services of a local Mexican mediator. This can be an export agent, manufacturer of similar products, service companies, or wholesale distributor. All of the above mentioned professionals know the market and are able to deal directly how to market the product and find the best sales channels. Besides they are able stock the goods store and manage legal procedures in order to introduce new products on the market.
A commercial agent is a great choice for setting up a market that is completely unknown for your business. An agent will take care of the initial procedures of an export activity. A commercial agent establishes marketing contacts quickly and efficiently; controlling brands and logistics policies until the product is finally delivered. Use of an agent is also effective when a product should be in stock and readily available. It is better to appoint representatives in several cities to maximize distribution. It is not recommended that you sign an exclusive national agreement with the agent. In addition, it is important to develop a close working relationship with selected commercial agent. As there may be many qualified candidates, it is possible to use high criteria for the selection of the commercial agent.
The points to be careful with
Having a commercial agent as the representative of a company that opens up the market, it is difficult to maintain effective control over the efficiency of procedures. It is difficult to control the extent where the agent works for his own organization and follows its own priorities.
It is important to consider that customers will direct customers of the agent and not from the company that exports. It is advisable to work with companies that offer a type of association business and not just with intermediate agents to be more directly involved during the marketing process.
Motivating an Agent
The amount of commission is an important motivator. A common practice among agents is to participate in contests and competitions. Control and good contacts can be useful to monitor the activities of the agent. Make sure the agent knows the market well for your products.
The Commission Structure
In general, it is 15 to 25% of the total sales.
Please note the amount of the sales commission varies by sector of activity. You should negotiate with your sales representative. Do not hesitate to ask several potential partners to compare and see if the rate is consistent.
Breach of Contract
It is essential to establish a written contract. It is advised to use a lawyer in case you are new to the market.