As a New Zealand exporter, the decision to partner with an in-market distributor presents both opportunities and challenges. Making the right choice can significantly impact your sales success, while a wrong decision can be costly in terms of lost sales, money, and time. At UnleashNZ, we specialise in helping businesses bring their ideas to market. Drawing from our extensive experience, we have identified six common pitfalls to avoid when selecting an in-market distributor.

1. Don't Settle for the First Impression: Overpromising and underdelivering is a common trait among distributors. Avoid getting "wowed" by the first distributor and failing to explore other options. Clearly communicate your expectations, roles, and responsibilities while maximising profit potential for both parties. Meeting with multiple potential partners is essential to finding the right fit for your business.
2. Due Diligence Matters: Receiving recommendations is valuable, but remember that what works for others may not work for you. Conduct thorough due diligence to ensure alignment of goals and strategies. Ask critical questions to gauge compatibility, such as their portfolio fit, strategic goals regarding your brand, the range of products they handle, the attention they will dedicate to your product, and their ability to actively sell complex products.
3. Distributors Are Channels, Not Customers: Recognise that the end user of your product is the real customer, and the distributor is just one channel to reach them. Ensure that your distributor actively sells your product and becomes an ambassador for your brand, embodying its values and personality. Seek their commitment to invest in training and tools to enhance the sales of your brand, adding value to customers without relying solely on discounts.
4. Scrutinise the Contract: Thoroughly examine the terms of the contract, paying attention to crucial clauses. Evaluate service delivery, termination, payment terms, liability (including insurances), penalty clauses, freedom to operate, commitment from both parties, sales and marketing reporting, and access to end customers. If using your own agreement, ensure it covers these aspects effectively.
5. It Doesn't End with the Appointment: Appointing a distributor is just the beginning; the success of your international business rests on your shoulders. While distribution can be outsourced, responsibility cannot. Establish specific performance measures, agree on an evaluation process and timeline, and ensure your distributor understands key metrics important to your business. Schedule regular updates to proactively identify and address any issues.
6. Nurture the Relationship: Building a successful partnership requires ongoing communication and understanding. Foster open, collaborative, and honest dialogue to prevent conflicts. Invest time in developing a deeper understanding of each other's business, fostering a stronger and mutually beneficial relationship.

Choosing the right in-market distributor is not a complex endeavour but requires due diligence and proactive management. Embrace the adventure of exporting while remaining vigilant in your decision-making process.

Contact us for a chat if you would like to learn more about our processes or how we can assist you in selecting an in-market distributor for your business.

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