Creating a long-term relationship is not always easy, whether we talk about strategic supply, distribution or even more complex types of collaboration.
If you are looking for a distributor for your products with specific features, you should know exactly that type of distributor and the features they must have. It's true, the research may be challenging and may require a lot of investment in terms of time and money, but the question you have to ask yourself is: "Is this really the kind of partner I'm looking for?”.
If the answer to the question is positive and you are not settling for a partner who is the best you have found but is not exactly what you were looking for, then you can consider starting a collaboration.
The distributor search is the longest part so you should pay attention to what you do and the way you do it. Also remember that if you don't have the skills or the necessary data required to carry out this research, it is certainly better for you to rely on external companies, who know where to start and how to do the job in the best way, in order to maximize your investment of time and money.
After getting positive feedback from the research and starting to talk to your potential new distributor, the following step is to propose a win-win relationship, favorable for both parties.
For example, if your company sells on average a pair of socks for 10€ and you have a production cost of 3,5€, you could offer them to your distributor at a price that does not guarantee you a big profit margin but that allows you to gain the trust of your new partner with a very competitive price.
This win-win strategy can help you increase production and turnover and can guarantee your distribution partner a lower price for a higher value product, thus satisfying his customers as well.
A few months after the beginning of the report, you will then be able to work out together whether the objectives set have been achieved and therefore it is better to continue the report, or not stop it because of the failure and then to start again your research in a new challenging market.