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An agent is a company or store that is entrusted to represent or mediate a transaction.
In reality, there are two types of possible contracts: Distributor Contracts and Agent Contracts.
As these two are completely different it is important that we clarify the differences between Distributor Contracts and Agent Contracts.
| Distributor Contract | Agency Contract | |
|---|---|---|
| Contract Type | Sales contracts between “manufacturers and dealers” and “dealers and customers” | Sales contracts between manufacturers and dealers. “Agents act as intermediaries” |
| Product Pricing | Dealers decide | Manufacturers decide |
| Inventory and Price Risk of Bad debts | Dealers bear the risk | Manufacturers bear the ris |
| Contract Responsibilities to End Users | Dealers bear the responsibility | Manufacturers bear the responsibility |
Speedily organise the placement of your products internationally with your partners
Sales can be outsourced to agents so that you can focus on production and manufacturing, freeing you to focus on your strengths
Easily review your sales strategy and systems
Costs can be significantly reduced when compared expanding overseas from in-house
Earn greater sales compared to producing and manufacturing in-house
Start with lower initial costs with a lower risk of bad debts occurring
Less well know companies can come under the banner of a more high profile manufacturer and therefore increase sales and with greater ease
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