Successfully Appointing a Distributor in Israel

by | Jul 22, 2013 | Lawyers

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Many types of businesses, depending on their size and available products, can benefit from the services of a capable, reliable distributor. Small or even medium sized business may choose to market and sell their products on their own. Taking this route allows suppliers to retain the revenue their products generate, but also makes them wholly responsible for the costs accrued during the sales process. Appointing a distributor in Israel means splitting profits, but also benefiting from the various services quality distributors have to offer. Maintaining a harmonious relationship with a distributor requires an understanding of your rights and obligations as well as theirs.

Expanding Your Reach
Regardless of the size of your business and the types of products you market to buyers, selecting a distributor who possesses expertise in sales and marketing techniques is essential. Dependable distributors assist suppliers by making their products available to buyers they likely wouldn’t have the means to reach otherwise. Locating a distributor with experience in marketing and selling products similar to your own is an added advantage, as they’ll likely be more familiar with your targeted buyers’ needs and wants. Appointing a distributor in Israel who has an excellent track record or is preferred by competitors and buyers will give your company a much-needed boost.

Supplier and Distributor Duties
Similar goals, principles, and a mutual understanding of ethical and legal obligations are important ingredients in any prosperous supplier and distributor relationship. Distributors are charged with fulfilling a number of duties, such as dedicated marketing, generating exceptional sales profits, applying useful resources, keeping the supplier updated, managing warehouses or other facilities, and keeping accurate sales records. Suppliers, on the other hand, are responsible for assuming liability for poor quality, ensuring that their products are properly constructed, allowing distributors to market and sell in the agreed upon areas, and compensating distributors for returned, defective products.