Sales Agents in France

FRANCE GERMANY SPAIN

Focussed andCentralisedDistribution

YES YES NO

CompetitivePricing YES YES YES

AgentLaw

Very strict Strict Strict

Ease of findingagents

3 2 1

Ease of makingappointments

1 2 3

1. General Market Features (I)

FRANCE GERMANY SPAIN

Terms ofpayment

2 3 1

Solvency 2 3 1

CulturalProximity

2 1 3

PurchasingPower

2 3 1

LanguageSkills

2 1 2

1. General Market Features (II)

2. Definitions

http://www.comagent.com/fr/lagent-commercial.html

3. Differences between agents and distributors (I)

Distribuitor Sales AgentsBuys and sells Sales agent

Margin on sales Commission

Stock No stock, ocassionally showroom

After-sales & Tecnical service No after-sales ervice

Manages all aspects of promotion,Sales policies, logistics

Sales mangement

Covers risk of non-payment bythird parties

Principal manages non-payments

Sole distributor – sales and unpaidinvoices

Diversification

Loss of control Closer control

False distributor Exclusivity

3.Differences between agents and distributors (II)

DistribuitorsStandard productsTechnically complex productsLarge marginsLarge ordersShort delivery termsMany customersCan have very diverse customers

AgentsStandard or bespoke productsProducts without after-sales serviceLower margins than distributorsLarge or small ordersCustomers often have to acceptlonger delivery termsMany or few customersLimited sales zones

3. Differences between agents and distributors (III)

4. How to find sales agents from least to most effective (I)

• Get lists of possible agents from Overseas Trade Offices:

• Consult international directories that descibe company activities (ie. Kompass, Europages)

• Place an advert with the French National Association of Sales Agents & Intermediaries:

• Word of mouth: ask manufacturers of complimentary products if they can recommmend anybody.

• Taking part in meetings of sales agents.

• Place an advert in specialised publications in target country. Check old issues first.

• Advertise in your stand if you are exhibiting in fairs.

• Search Google.fr using advanced search options.

4. How to find sales agents from least to most effective (II)

• Check products that may be complimentary to our own and which may make an agent's portfolio more attractive. Names?

Check the webs of Eeuropean manufacturers associations. These can be requested from Overseas Trade Offices or can be found in the virtual pages of sectorial fairs. You can find these manufacturers using Google searches.

4. How to find sales agents from least to most effective (III)

6. Factors to evaluate a commercial agent

CHECK LIST!!!

Personal profile

Professional profile

Sales team

Turnover

Product mix

Customer profile

Territorial analysis

Available resources

7. Sales contract

Contracting partiesObject of the contractProductsTerritoryMarket segment: potential customer baseExclusions: existing customers or large customers Contract term: temporal/ indefinite. Exclusivity: segments / sobre territorialNo-competitionConfidentiality

Company obligations Functions and obligations of the agentCommissions and how they are paidSales targetsCompensationPost-termination orders No-competition clauseMotives for teminationNon-transferLaw and jurisdiction

8. Guaranteeing success (I)

► RECRUITMENT PROCESS

Should be meticulous and all questions and points should be openly tackled.

Reject troublesome, over-demanding or arrogant candidates, however much experience they may have.

Check references. Speak with the other companies they represent.

8.Guaranteeing success (II)

► THE CONTRACT

• It shoud be fair to both sides, but in line with the company's standard model: you can't have a different contract for each agent. It should not be over-generous nor over-rigourous. Never give in to unreasonable demands.

• You should include a trial period of at least six months.

• The contract should specify sales targets. If this is not possible, the trial period should include a plan of mandatory sales activities.

8.Guaranteeing success (III)

►GETTING THE RELATION OFF ON THE RIGHT FOOT

• If the agent needs company training, do it as soon as possible. It is in everybody's interests to start as soon as possible and the formative period is a chance to get to know the agent better.

• Answer all the agent's requests for prices, samples and information promptly.

• Make a joint visit to customers during the trial period. This will give you a good idea of how the agent handles himself with customers.

Don't “forget” your agents: at the beginning he is going to need all your support and a strict follow-up. It is all to easy to get tied up in the day-to-day.

An agent who doesn't ask questions, doesn't phone or send mails IS NOT WORKING. An active agent will, sooner or later, will bring in the orders.

Merci beaucoup!Question time

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