| Levels of Service |
This page outlines the levels of service FDG Global Services can offer and the
requirements of the manufacturer.
There are two reasons to use an export development company. First, an export
development company can generate more sales to more countries in less time than the
manufacturer can. Second, the export development company can generate export sales
and manage the export process more cost-effectively than the manufacturer's own
marketing department.
The export development division of FDG Global Services handles only exports. We have
extensive overseas contacts in a variety of industries. We can establish permanent chains
of distribution relatively quickly. In addition, we are experienced with the logistical and
financial aspects of exporting. When you chose FDG Global Services to handle your
international sales, we are confident that you will be pleased with the increased revenue
and decreased costs.
The level of service FDG Global Services will offer depends on the functions you wish to
out-source and the degree of control you wish to maintain.
Complete Outsourcing
Under this arrangement, all aspects of the sale would be handled by FDG Global
Services. The manufacturer would sell the product to FDG Global Services. FDG Global
Services would pay for and take title of the product. FDG Global Services would
physically takes possession of the product. FDG Global Services would market, sell, and
ship the product. FDG Global Services would collect payment for the product.
This arrangement is subject to revision and amendment on the basis of product salability,
sales cycle time, inventory turnover, and customer/industry creditworthiness. Under most
circumstances, the manufacturer will be required to extend credit terms to FDG Global
Services. Final provisions will be stipulated in the representation-agreement contract.
Limited Outsourcing
Sometimes the manufacturer may remain responsible for one or more parts of the
salesprocess. If FDG Global Services were to act as an agent or a broker, shipping and
billing may still be performed by the manufacturer. (If your company markets but wishes
to outsource shipping and billing, you need the services of a freight forwarder, not an
export development company.)
Shipping is the most commonly retained function. Geographic constraints or special
shipping considerations may necessitate the manufacturer managing the shipping
process. However, it may also be possible for FDG Global Services to arrange the
shipment and the manufacture to simply load the container.
Requirements of the Manufacturer
Under each export development program, the manufacturer would sell their products to
FDG Global Services. FDG Global Services, in turn, would sell the products overseas.
To the manufacturer, this arrangement would be as simple as acquiring a new domestic
customer. In return, FDG Global Services may require certain protections from the
manufacturer: Market Exclusivity, Private Labeling, or Preferential Pricing.
Market Exclusivity
When dealing with international distributors, it is common to offer exclusive rights to sell a
product in a certain territory. This is commonly negotiated by formal contract with a finite
period of validity. Under this arrangement, the manufacturer guarantees that only the
distributor will handle sales to a certain country or region. If a potential customer from
that region contacts the manufacturer directly, the manufacturer must refer the customer
to the exclusive distributor.
An exclusive territory agreement is very beneficial to the distributor. However, awarding
exclusivity to an unknown or unproven agent may be relatively risky for the manufacturer.
If the distributor is not able to deliver, the manufacturer may be loosing out on sales. To
insure commitment and results, exclusivity contracts should include provisions for
minimum sales volumes. Furthermore, territories may be limited initially; only to be added
as the agent demonstrates an ability to generate sales.
Awarding exclusive distribution rights offers additional value to the manufacturer. Without
the concern of being excluded by direct sales, the distributor is encouraged to use the
manufacturer's name freely. The manufacturer therefore benefits from expanded
name-recognition.
If you chose to outsource your exports to FDG Global Services, we may ask for market
exclusivity. It is common practice for an export development company to require exclusive
world-wide distribution rights. Under some circumstances and with some products, it may
be necessary for us to require this of your company. However, it is generally common
practice for FDG Global Services to require full exclusivity for only one geographic area
initially.
Other export development companies may require two to five years of protection. At FDG
Global Services, our contracts are negotiated annually. In certain cases, we may be
willing to accept a probationary period before the contract goes into full effect. We wish to
prove to you our ability to deliver sales. We are confident that our results will speak for
themselves. Our goal is to be trusted with all of your export sales.
Private Labeling
Manufacturers who are uncomfortable with or who cannot enforce territory agreements
may consider private labeling. Under this arrangement, the product would be sold to the
distributor and the distributor would re-label the product with the distributor's name. In
effect, the manufacturer becomes a toll-processor.
With a private labeling arrangement, the distributor has complete control over the brand
name. The manufacturer derives no additional name recognition through overseas sales.
However, the manufacturer also does not have to worry about names or trademarks
being diluted or misrepresented. In order to sell into a particular market, modifications in
performance or quality may be required. By selling under a different brand through an
unrelated company, the manufacture may be able to reach a new market without angering
existing customers.
If your company cannot award market exclusivity to FDG Global Services, we may be able
to negotiate a private labeling arrangement. The labeling requirements will vary from
product to product. The actual re-labeling may be done by the manufacture or by FDG
Global Services.
Preferential Pricing
If other types of protection cannot be offered, FDG Global Services may require
preferential pricing. Preferential pricing need not be significantly lower than domestic
pricing. Preferential pricing programs simply require that foreign customers be quoted a
higher price than FDG Global Services's prices. Many American manufacturers already
have higher list prices for export accounts. FDG Global Services will require the lowest
domestic price.
One Final Note
Please understand that the above requirements and considerations will be negotiated on
a case-by-case basis. The information on this website does not constitute an intent to
purchase, sell, or handle any particular products or services. A referral to this website
does not constitute a solicitation to purchase, sell, or handle any products or services.
Any transactions or agreements with FDG Global Services are subject to the terms and
stipulations of the contract.
requirements of the manufacturer.
There are two reasons to use an export development company. First, an export
development company can generate more sales to more countries in less time than the
manufacturer can. Second, the export development company can generate export sales
and manage the export process more cost-effectively than the manufacturer's own
marketing department.
The export development division of FDG Global Services handles only exports. We have
extensive overseas contacts in a variety of industries. We can establish permanent chains
of distribution relatively quickly. In addition, we are experienced with the logistical and
financial aspects of exporting. When you chose FDG Global Services to handle your
international sales, we are confident that you will be pleased with the increased revenue
and decreased costs.
The level of service FDG Global Services will offer depends on the functions you wish to
out-source and the degree of control you wish to maintain.
Complete Outsourcing
Under this arrangement, all aspects of the sale would be handled by FDG Global
Services. The manufacturer would sell the product to FDG Global Services. FDG Global
Services would pay for and take title of the product. FDG Global Services would
physically takes possession of the product. FDG Global Services would market, sell, and
ship the product. FDG Global Services would collect payment for the product.
This arrangement is subject to revision and amendment on the basis of product salability,
sales cycle time, inventory turnover, and customer/industry creditworthiness. Under most
circumstances, the manufacturer will be required to extend credit terms to FDG Global
Services. Final provisions will be stipulated in the representation-agreement contract.
Limited Outsourcing
Sometimes the manufacturer may remain responsible for one or more parts of the
salesprocess. If FDG Global Services were to act as an agent or a broker, shipping and
billing may still be performed by the manufacturer. (If your company markets but wishes
to outsource shipping and billing, you need the services of a freight forwarder, not an
export development company.)
Shipping is the most commonly retained function. Geographic constraints or special
shipping considerations may necessitate the manufacturer managing the shipping
process. However, it may also be possible for FDG Global Services to arrange the
shipment and the manufacture to simply load the container.
Requirements of the Manufacturer
Under each export development program, the manufacturer would sell their products to
FDG Global Services. FDG Global Services, in turn, would sell the products overseas.
To the manufacturer, this arrangement would be as simple as acquiring a new domestic
customer. In return, FDG Global Services may require certain protections from the
manufacturer: Market Exclusivity, Private Labeling, or Preferential Pricing.
Market Exclusivity
When dealing with international distributors, it is common to offer exclusive rights to sell a
product in a certain territory. This is commonly negotiated by formal contract with a finite
period of validity. Under this arrangement, the manufacturer guarantees that only the
distributor will handle sales to a certain country or region. If a potential customer from
that region contacts the manufacturer directly, the manufacturer must refer the customer
to the exclusive distributor.
An exclusive territory agreement is very beneficial to the distributor. However, awarding
exclusivity to an unknown or unproven agent may be relatively risky for the manufacturer.
If the distributor is not able to deliver, the manufacturer may be loosing out on sales. To
insure commitment and results, exclusivity contracts should include provisions for
minimum sales volumes. Furthermore, territories may be limited initially; only to be added
as the agent demonstrates an ability to generate sales.
Awarding exclusive distribution rights offers additional value to the manufacturer. Without
the concern of being excluded by direct sales, the distributor is encouraged to use the
manufacturer's name freely. The manufacturer therefore benefits from expanded
name-recognition.
If you chose to outsource your exports to FDG Global Services, we may ask for market
exclusivity. It is common practice for an export development company to require exclusive
world-wide distribution rights. Under some circumstances and with some products, it may
be necessary for us to require this of your company. However, it is generally common
practice for FDG Global Services to require full exclusivity for only one geographic area
initially.
Other export development companies may require two to five years of protection. At FDG
Global Services, our contracts are negotiated annually. In certain cases, we may be
willing to accept a probationary period before the contract goes into full effect. We wish to
prove to you our ability to deliver sales. We are confident that our results will speak for
themselves. Our goal is to be trusted with all of your export sales.
Private Labeling
Manufacturers who are uncomfortable with or who cannot enforce territory agreements
may consider private labeling. Under this arrangement, the product would be sold to the
distributor and the distributor would re-label the product with the distributor's name. In
effect, the manufacturer becomes a toll-processor.
With a private labeling arrangement, the distributor has complete control over the brand
name. The manufacturer derives no additional name recognition through overseas sales.
However, the manufacturer also does not have to worry about names or trademarks
being diluted or misrepresented. In order to sell into a particular market, modifications in
performance or quality may be required. By selling under a different brand through an
unrelated company, the manufacture may be able to reach a new market without angering
existing customers.
If your company cannot award market exclusivity to FDG Global Services, we may be able
to negotiate a private labeling arrangement. The labeling requirements will vary from
product to product. The actual re-labeling may be done by the manufacture or by FDG
Global Services.
Preferential Pricing
If other types of protection cannot be offered, FDG Global Services may require
preferential pricing. Preferential pricing need not be significantly lower than domestic
pricing. Preferential pricing programs simply require that foreign customers be quoted a
higher price than FDG Global Services's prices. Many American manufacturers already
have higher list prices for export accounts. FDG Global Services will require the lowest
domestic price.
One Final Note
Please understand that the above requirements and considerations will be negotiated on
a case-by-case basis. The information on this website does not constitute an intent to
purchase, sell, or handle any particular products or services. A referral to this website
does not constitute a solicitation to purchase, sell, or handle any products or services.
Any transactions or agreements with FDG Global Services are subject to the terms and
stipulations of the contract.
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