Territorial Exclusivity: Distributors may be granted exclusive rights to distribute products within a designated geographic area, ensuring they have sole access to customers within their territory.
Minimum Sales Targets: Distributors may be required to meet minimum sales targets within a specified timeframe to maintain their distributorship status and access to favorable terms.
Marketing Support: Distributors may receive marketing support from the manufacturer, such as advertising materials, promotional campaigns, or co-op advertising funds to help drive sales and brand awareness.
Product Training: Manufacturers may provide product training and resources to distributors to ensure they have a comprehensive understanding of the product’s features, benefits, and selling points.
Pricing Structure: Clear pricing structures and terms are established, outlining wholesale prices, suggested retail prices, and any discounts or incentives available to distributors based on sales volume or performance.
Inventory Management: Guidelines for inventory management, including order fulfillment, stock rotation, and product replenishment procedures, help distributors maintain adequate stock levels and prevent overstock or stockouts.
Payment Terms: Agreed-upon payment terms, such as net payment periods or installment plans, ensure smooth financial transactions between manufacturers and distributors, fostering a mutually beneficial relationship.
Product Returns and Refunds: Policies for handling product returns, exchanges, and refunds in cases of defective or damaged goods are established to protect both distributors and end customers and maintain customer satisfaction.
Non-compete Agreements: Distributors may be required to sign non-compete agreements if necessary, restricting them from selling competing products or engaging in business activities that could directly compete with the manufacturer’s products.
Renewal and Termination: Terms outlining the process for renewing distributorship agreements and conditions under which agreements may be terminated, such as breaches of contract or failure to meet sales targets, provide clarity and transparency for both parties.
