UK distributor Advice Pls.....

WinnieJ

Tozer - have done more reading after your post and think I am looking to be an agent as don't have dosh to invest massively.

I found this....agents usually are small organization or indivuduals that makes formal agreements with manufacturers to sell their products to other people or business in their native country. They usualy dont invest anything making good profit from sales gain by a commission.

Tozer

WinnieJ wrote: »

Tozer - have done more reading after your post and think I am looking to be an agent as don't have dosh to invest massively.

I found this....agents usually are small organization or indivuduals that makes formal agreements with manufacturers to sell their products to other people or business in their native country. They usualy dont invest anything making good profit from sales gain by a commission.

Yes - see how the confusion arises?

With a sales agency, the business risk (e.g. bad debts, etc) remains with the principal.

However, the principal may not like this model - if they were properly advised they would also be concerned about the European Regulations affecting sales agents that makes it unpalatable for them (including paying compensation upon the termination of the arrangement).

blue_monkey_2

You will also have the lovely VAT and Duties to pay on the goods and postage charges (if they are heavy that will cost a lot) when they come into the UK so you have to take this into account too. It then becomes cheaper for the buyer to get it from the US (eBay?) and if it is a product that is well know then people will already be looking on eBay.

I have a range of clothing that I imported from a US company, it was quite well known in the US, and they wanted me to be their agents but also meant doing all of the work. Despite their 'contacts' they wanted me to do, and pay for, all of the UK promotion which, in reality, would have costs £1000's of pounds and I did not have that kind of money. It is £1k for a small ad in the back of a magazine. A huge spread would cost aroun 10k+ I can say for a fact that you can have the best and cheapest products in the UK but without a huge promotional campaign you are pretty much stuffed.

I actually have a couple of people who order their goods to sell in their Overseas boutiques via me because it is cheaper for them to do that than for them to go via the agent. The agent has to add extra for all of her duties and charges on whereas I can send them for the cost of postage and if the package is under a certain value there are no customs charge. They just have to buy a couple of bits from their agent to allow them to use the images and the rest they get from me. Madness really, but it is not all that it is cut out to be with the likes of eBay these days.