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How we can help you |
In order to establish/reinforce your presence into the European Market you could follow 2 ways : Direct organization Dealers ( * )
Let's make a brief comparison between the 2 possible schemes
Advantages Disadvantages
- Direct control of the market
- No competitive products promoted
- High flexibility on selling prices
Direct organization
- High commercial expenses
- Cost of the Customers payment delays
- Inventory cost
- Low commercial expenses
- Local Market introduction
- Scheduled Payments (low A.R.)
- No Inventory cost
Dealers
- Low market control
- no 100% focus on sales
- No flexibility on selling prices
- Difficult to apply the Company strategy
Unfortunately there is no fixed rule that can grant the best result and our general advise is that a decision should be taken market by market
In some markets ,like Italy , the Medical Devices products are sold to Hospital through tenders ,but the Hospital will pay in an average range of 8-16 months.
Price , local Know-how and Accounts Receivable time suggest as appropriate choice to have a Dealer unless the Yearly sales are higher than 6-7 Million (€uro).
Similar situations in the "Mediterranean Countries ( France , Spain, Portugal ,Greece)In other markets , like Uk ,Germany ,Belgium ,the situation is better , less tenders ,less price pressure ,faster payments .
As consequence a direct organization can deliver a more profitable result
Our fisrt advise is : Let's talk and ,let's evaluate together the 2 options :
Start-up of a Direct Organization Dealer/s in one or more European Countries
( * ) The meaning of the term "Dealer" in Europe does mean a Commercial structure with his own Sales,Marketing,admin,etc organization that buys Product from the Manufacturer ,paying invoices generally in 90 days ,maintaining an appropriate Inventory,promoting and selling to the final Customers