What are some of the benefits that would have compelled Raynonplus to choose distributorship agreement over an international sales agent agreement?

 

The decision to become a distributor is influenced by the myriad of benefits that distributors accrue as compared to the sales agent. A distributors purchases the products then resells them to the local end users who maybe consumers or retailers. This therefore offers the distributor the liberty to sell complementary and competing lines products which a sales agent cannot. Being a distributor enables Raynonplus get paid fees by adding margins to the products and therefore set their fees higher than those of an agent. In addition to that being a distributor enables one have control over the distribution process of the product, provide back up services to clients as well as developing a market base for the product. A distributors has the advantages of handling more of the in market works therefore saving on the time and costs as well as undertaking promotion of the product in the market. Being a distributor is therefore more advantageous for an organization as compared to being an international sales agent.