International Team Consulting which sets the bench-mark in as far as international trade development for SMEs is concerned, carried out a comprehensive search for possible candidates, filtered the initial results and compiled a short list of eligible sales representative with well-proven credentials in the PVC and aluminium door panel industry.
A total of 6 candidates were short-listed from those that were deemed to comply with the criteria and who had expressed interest in working with the Galician firm and going forward with the negotiating process. This process lead to a series of interviews with these contenders to discuss the initial approach to distribution and representation in the German market.
Once this first stage of selection and initial interviews is completed, International Team Consulting provides the Spanish firm with a protocol to guide them through the subsequent negotiations with a view to facilitating a successful outcome.
ITC recommends the following steps:
Any and all agreement reached with a sales agent must be put in writing. German sales agents will tell you that you can obtain a standard model from the federation of Sales Agents (CDH). However, whilst the Federation’s model will give you a very clear vision of where both parties stand from the German legal point of view, it is paramount that each company have its own model that can be adapted to different countries and agents.
The contract should not be discussed in the first meeting as at least two meetings will be necessary to “get a feeling” for each other and to know whether or not agent and company can work together.
Steps to be taken to ensure a successful working relationship:
- Invite the agent to visit your company.
- Follow-up meeting to iron out the points that may nor have been concluded in previous meetings.
- You should take the lead in proposing a contract.
- Negotiate he contract with the German agent.
- Sign contract.
- Accompany the gent on a first trip to meet customers in Germany.
This negotiation process may take between one and three months to ensure that everything has been settled to your satisfaction. The first trip should be made within the three months following the signing of the contract. Make sure the agent receives adequate training in the product, that he takes a pro-active approach to the market and that your follow-up and control of the agent lead to increased sales in the market.
For further information on how we can help you export to Germany, please contact us:
Consultant for the German market