Export-Import Management (520135)

Chapter – 03
(Agents and Distributors)
Lecture- 10

Conducted By :
Lata Akter
Lecturer
Department Of Business Administration
Dhaka City College
 Topics to be discussed……..

 Role of Sales Agent

 Types of Sales Agent

 Commission Agent

 Criteria for Selecting a Commission Agent or a Distributor

 Contents of Commission Agency and Distributionship Contracts

 Role of Sales Agent

1. Performance of duties
2. Maintenance of skills, care and diligence
3. Render Proper accounts
4. Return money received
5. Delegation of authority
 Rights of Sales Agent

1. Right to receive remuneration

2. Right to meet necessary expenditures and get it
reimbursed from the principals
3. Right to hold agency or property
4. Right to get tosses indemnified by the principals
5. Right to detain goods in transit.
 Types of Sales Agent

1. General Sales Agent

2. Special / Particular Sales Agent
3. Commission Agent
4. Del Credere Agent
5. Auctioneers
6. Underwriters
7. Forwarding Agents
8. Clearing Agents
 Commission Agent

An international agent who is paid a percentage of the sales he or she generates. The Agent offers
products to potential clients in an assigned territory (usually a country), strictly in accordance with
the sale conditions indicated to it by the Principal. There is no employment relationship between
the Agent and the Principal, and their relationship is purely a commercial one. In this regard, on
the end of this agreement, the Agent shall not be entitled to receive any compensation. In
international trade the relationships between the commercial agent and his clients are governed by
the contract.
Selling through the overseas agents is an effective strategy for export marketing, as these agents
serve as a source of market intelligence, regularly feeding the exporter with the latest trends in
demand, fashion, taste and price in the overseas market. Being a man on the spot, the agent is in a
position to render his advice to exporter on new methods and strategy for pushing up sales of your
products.
 Criteria for Selecting a Commission Agent or a Distributor

1. Size of the agent's company

2. Date of foundation of the agent's company
3. Company's ownership and control
4. Company's capital, funds available and liabilities
5. Name, age and experience of the company's senior executives
6. Number, age and experience of the company's salesmen
7. Other agencies that the company holds, including those of competing products and turn-
over of each
8. Length of company's association with other principals
9. New agencies that the company obtained or lost during the past year
10. Company's total annual sales and the trends in its sales in recent years
 Criteria for Selecting a Commission Agent or a Distributor

11. Company's sales coverage, overall and by area

12. Number of sales calls per month and per salesmen by company staff
13. Any major obstacles expected in the company's sales growth
14. Agent's capability to provide sales promotion and advertising services
15. Agent's transport facilities and warehousing capacity
16. Agent's rate of commission, payment terms required
17. References on the agent from banks, trade associations and major buyers
Thank You