Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Exclusivity agreement

Options
  • 17-11-2011 9:43am
    #1
    JMR
    Registered Users Posts: 633 ✭✭✭


    I am in the process of setting up as the distributor in Ireland of an American manufactured product.

    The products will be sold on-line and the website is currently being built. I have not yet placed an order with the manufacturer but for the last 4 or 5 weeks we have been corresponding regarding prices and images for the website etc.

    The question I have is regarding an exclusivity agreement.
    Should I bring the idea up with the manufacturer at this stage or is it too early in the relationship?

    My fear is that because I will be operating in a fairly niche market with a limited number of competitors that as soon as my product comes to the market some of the bigger fish might jump on it and the manufacturer may be tempted to deal with a larger more established company.


Comments

  • Options
    #2
    Homer
    Registered Users Posts: 4,311 ✭✭✭Homer


    For exactly the reasons you mentioned, your manufacturer/supplier in the states would be reluctant to give you exclusivity unless you have a proven track record in bringing a product to market successfully! I was in a similar position to yourself and had to prove to the suppliers in the states through commitment to planned orders and sales quantities that I deserved the exclusivity agreement.
    Suppose they give you the exclusive rights for a 12 month period and you find another product and drop theirs (hypothetical situation) then they have lost any opportunity to promote and sell the product in this territory.
    Ask for a commitment from them for a probationary period to allow you prove that you can take in orders and sell them into the marketplace and order more! They will only supply you with the product until the end of the trial period and you can ask then for an exclusivity arrangement? Best of luck with it.


Advertisement