5, What are your quantity and margin requirements?
Don’t be afraid to start talking about the commercial aspects of the business opportunity once both parties are ready to do so. No matter how great a potential partner may seem, if they are only willing to buy very small quantities and you operate on high volume production (or vice versa!) then the size of the actual business opportunity may actually not stack up.
Equally if the pricing you can offer and the margin that they and their customers require won’t work though the value chain then being able to reach this impasse fairly quickly is worthwhile. By understanding that either through this route to market, particular partner and/or market is not an attractive business opportunity and move forward into a new market or partner search promptly can save you valuable time and efforts.
If you would like help validating or effectively negotiating with overseas distributors or prospects that you are speaking with please contact our team by using the contact form below.