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.