Planning Exports - Finding The Right Representative

Finding The Right Representative

Local agents or representatives are critically important to the success of export programs. They have contacts and networks in place and an established reputation in their local markets, all of which can open doors for you. The relationship that you create with your agent can be the foundation of a long-term, mutually beneficial partnership.

However, it is vital that you find an agent that is right for you. It is also crucial that you and your agent understand clearly what each party expects of the other. The following chapter will give you an overview of some issues and options for your consideration.

No decision is as important in the development of an export strategy than the selection of your representatives in your target market. Make sure that the representation you select (agents or distributors etc.) have the necessary qualifications to develop and service the market. The following sources can provide lists of individuals and/or companies that you can use to begin your screening process.

Representatives of the Ministry of Economic Development and Trade's International Trade Branch may have lists of local representatives who have an established track record selling Canadian merchandise or related goods in your industry sector. The Canadian Trade Commissioner in the Commercial Division of the Canadian Embassy can also advise you regarding agents in their territories. Contact or write to them and ask for a recommendation.
Talk to other Canadian exporters in your industry with non-competing merchandise. They may recommend agents/distributors in your target market - be sure to check them out yourself.
Participate in foreign trade shows. Not only is this an excellent way to test the market for your goods but it will also provide you with opportunities to meet agents who are seeking new lines. Be cautious though. The agent hungry for new lines may not be the best agent. Many of the best agents are careful about taking on new lines.
Advertise in the leading international sector/technology trade magazines.
Contact the local importers' association or sector association in the target market. They often can provide names of firms or individuals active in your sector. Where feasible, ask the potential buyers of your goods which agents or distributors they recommend.
The Canadian Trade Commissioner can be an excellent source of advice in selecting representatives. The Commissioner may be able to conduct an informal investigation into the performance and reputation of a potential representative. Researching potential representatives will involve sending long-distance faxes and follow-up telephone calls. The investment will be minimal compared to the benefits. The time and money you put into screening potential representatives pays off when you find the best possible representation for your merchandise.

Tips for Selecting a Representative

Make sure that the other product lines being handled by the agent/distributor are compatible with your own and are non-competing.
Check out references from the agent's clients and within the industry. Do they have a reputation for performance and integrity? Banks and purchasers are obvious sources of this kind of information.
Once you have a short list of candidate firms, you can begin interviewing. Use the guidelines set out in section 4.2 "Evaluating Potential Representatives" in interviewing your prospective representatives.
Examine the prospect's principal players.