Evaluating Potential Distributors

• Financial stability – credit history, timeliness of payments, etc.
• Sales and marketing capabilities – size of outside and inside sales force, ability to generate leads, selling skills, technical competence, etc.
• Sales performance – past sales history for same or similar products
• Knowledge of the local market – ability to accurately forecast future sales and identify changes in customer needs and expectations
• Product mix – types of products carried, including competitive, supplementary and complimentary items
• Growth potential – capability of distributor to keep pace with any anticipated growth in the local market
• Inventory handling capabilities – warehouse space, ability to track turnover rates and other important statistics
• Technology capabilities – possession of and familiarity with the technology required to do business together most efficiently
• Management ability – viewpoint of distributor on human resources, planning, training, financial management, communication, etc.
• Succession planning – arrangements in place to continue the distributorship in case of retirement or death of distributor principal
• Overall fit – how well your goals, operating philosophies and business practices mesh with those of the distributor