New Zealand is known worldwide as an exporter of high-quality timber products. The target market for most New Zealand businesses is a domestic market with its 5 million consumers, but there are businesses producing a larger amount of surplus products seeking new placement ventures.

Asia is the most populous continent in the world and their economies growing at rates of 7-9% annually without a sign of slowing. While China looks at a scenario of a potentially greying population by 2025 largely attributable to its one-child policy, Thailand with South East Asia with a population of 269 million, is one of the youngest regions in the world with a median age of 25-year-olds. This demographic and economic outlook suggests that there is huge growth potential in the Asian markets that will have only an ever-increasing demand for imported products applicable to the local market.

With these market indications, one would wonder why NZ companies are not swarming Asia in search of prosperous markets. We believe that answer is in a rather complicated way of establishing a company in the region, great cultural and language barrier, time difference, knowledge of local regulations and lack of trust given to Asian partners. Basically, for you to be able to start trading in any new country or regional market, it requires that you know the local market and physically be there. The tactics that you may have successfully applied in the New Zealand market would probably not be applicable and may not work.

There is always an option to negotiate sales with purchasing managers in countries where you would like to place your products and eventually make a sale, but in the end, you will have to keep in mind your business case. 

The question is will you still be making money on your product in this way?

CPMNZ Ltd. has strong local business network connections with local chambers of commerce and industry organisations in Central Europe, Thailand, Indonesia UAE and Qatar.

For your business to thrive, not only is it essential for you to find the right business partners in us, but you also need to find the perfect sales models for you and your business venture.

Your options with us are that we can act as your licensed sales/purchasing agents and, only in special cases, as a distributor of the products.

If you are an exporter, we will ask you what is your idea to position your brand and approach the market, and if you are looking to source products overseas, we will provide you with options to suit your requirements. The better your plans and understanding of products, the more we will be able to help you. 

Our business development specialist will be responsible for growing your sales in the region, just as one of your own people would do. Our advantage is that we don't have to travel and know the market from within. You can hire us part-time, and for any commercial activity that you need.

If your plan includes finding distributors or sales agents, we could arrange it. If your product needs to be visible online on local platforms in the local language, we can help. If free publicity or visiting trade shows will help you sell, we will work on it.

We will report to the people in your organization and will work strictly within the budget that we agreed upon. For major decisions, as the choice for a major distributor, we may ask you to come over.

In order to do an effective partnership with you there are some things we would need completed by your side:

• Your company has a website in English, and preferably the language of the target country.

• Presentation materials, product descriptions etc. are available in English, and preferably in the language of the target country.

• You have a draft in English for the distribution or agency agreement, and you have a good idea of what would be realistic fees and percentages.

• Delivery conditions and international logistics are clear and described.

• There is an outline for a marketing plan, specifying the proposed way of promoting the products or services in the target country.

• Once we have found three to five suitable distributors or agents, you can come over within a few weeks to have the meetings that we arrange for you.

The better you are prepared and the more attractive you make it to work with your company, the more choices you will have from us. We can help you with any of above points if you are not meeting criteria.

At this stage, you are ready to invest in your distribution channel. As you can’t have your own people all around the globe trying to make market entry, you will need another avenue to be represented. With us, you will have complete control and transparency of your market investment. Apart from our fees, you may have to pay slotting fees, advertisements, certification fees and other costs to get started in a country, but working with our local specialists is certainly more profitable compared to flying somebody in and out in an attempt to increase your sales.  We would be happy to make this calculation with you and compare results!

The first period of our engagement is observed as a project, and that is how we would like you to pay us for this phase: project-based. If your product or service is complex and would take us longer to find your distributors or make a sale, we could ask you to reimburse us through a monthly retainer, and we report back to you every month on what we have achieved. Once our activities shift from marketing and preparations for sales management, we can (partly) work on a commission basis. This way you keep control over your budget.

Our initial fees for an agent or distributor differ per country, as per the table below:

 

Countries                                                                                                                          Agent

Australia, Singapore, UAE, Qatar                                                                                  from NZD 16,000

Western Europe, Saudi Arabia, Malaysia                                                                    from NZD 15,000

Turkey, Palestine, Jordan, Iran                                                                                      from NZD 15,000

Serbia, Czech, Poland, Thailand, Vietnam, India                                                       from NZD 10,000

 

The prices mentioned for the distributor search should give you an indication of your company is meeting our cooperation ready criteria.

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The fee that you can pay to your agent is limited by the difference between the maximum sales price that you can expect in the market and your own production costs. If you have to give away your whole margin to your agent, there is no use in exporting your products or service.

The second aspect is to see how much effort your sales agent should take. Not all leads will end in a sale, so you will also have to take that into account. The more expensive the product, the smaller the percentage, in general, will be.

For example, if we are talking about selling bulk timber products, for full sales including account management the fee for the agent can be up to 20%-30%. For only generating a 'lukewarm' selling lead for you to act upon this may just be 5%.

For selling custom-made plants or equipment, with a high order value of for example 200,000 NZD, the sales fee maybe 10%. But in that case, from the second meeting onwards the manufacturer will join in the meetings and he will be the one making the proposal because this is much too complex for the sales agent.

Our Sales Agent performs part or most of your sales activities abroad. Which activities will lie with the sales agent and which with your company, mostly relies on the complexity of the offering. The less complex your product or service is, the more the agent can do:

•    Researching the market

•    Generating Leads

•    Initial calling and sending information

•    The first meeting to present the offering and check the demand

•     A second meeting to further define the offering

•     Making a proposal

•     Entering in negotiations

•     Closing the sales

•     Delivering the product or giving access to/confirming the service

•     After-sales service or account management

In case of a simple service like selling a container of your goods, our agent can do everything. In the case of delivering a complex product like a production line, the manufacturer should be involved already from the second meeting.

Our local sales agent must be capable of performing all the activities that are necessary to get to a sale. Since this practically always includes lead generation, the sales agent should have a sufficient network in the market that you want to enter or have plenty of experience with (mass) marketing. And there should be a genuine interest to represent your brand because, for example, it is a logical addition to the product or service range of the agent. you benefit from the lower salary levels and daily rates in the target country. Using the buying power of NZD and exchange rate disparity we are providing top salaries to our agents, which ensure that we are getting the best executives and most experienced Business Development Managers available in the local market to promote your product.

Our Sales Agent performs part or most of your sales activities abroad. Which activities will lie with the sales agent and which with your company, mostly relies on the complexity of the offering. The less complex your product or service is, the more the agent can do:

•    Researching the market

•    Generating Leads

•    Initial calling and sending information

•    The first meeting to present the offering and check the demand

•     A second meeting to further define the offering

•     Making a proposal

•     Entering in negotiations

•     Closing the sales

•     Delivering the product or giving access to/confirming the service

•     After sales service or account management

In case of a simple service like selling a container of your goods, our agent can do everything. In case of delivering a complex product like a production line, the manufacturer should be involved already from the second meeting.

Our local sales agent must be capable of performing all the activities that are necessary to get to a sale. Since this practically always includes lead generation, the sales agent should have a sufficient network in the market that you want to enter or have plenty of experience with (mass) marketing. And there should be a genuine interest to represent your brand because for example, it is a logical addition to the product or service range of the agent. you benefit from the lower salary levels and daily rates in the target country. Using buying power of NZD and exchange rate disparity we are providing top salaries to our agents, which ensure that we are getting the best executives and most experienced Business Development Managers available in the local market to promote your product.

Forging a good, solid business relationship with CPMNZ ltd. requires trust from both sides. Involve a lawyer for a legally written contract with the necessary elements to avoid unnecessary obligations, restrictions or misunderstandings. In this way, the CPMNZ ltd. will be aware of limitations, benefits and the services required to increase sales. Here are some considerations to be taken into an account for a sales agency agreement:

• Part of the agreement is the agent’s territory. We must know where you want to sell your products and/or services.

• CPMNZ ltd. must have sufficient knowledge of your products as we would like to be able to promote your products with its credentials and not exaggerate on its contents and effects.

• The contract must state a limitation on the CPMNZ ltd. authority to act on your behalf, and the corresponding penalties in not doing so.

• You should not forget to identify the restrictions of selling competing products. CPMNZ ltd.  would accept different products to increase our own commission, so it’s highly recommended for you to emphasize the limits of selling different brands. Also, CPMNZ ltd.  may sell some of your own products which aren’t part of a given jurisdiction, so you need to be clear on which products we should focus on.

• The contract must also explain your duties and responsibilities as the manufacturer; you should give credit where credit is due. However, beware of implementing major restrictions and control without seeking our advice on the matter, as we may not be able to promote your product as it deserves.

• Confidential information must be kept hidden at all times to avoid information leakage and duplication of ideas.

• Rates of commission and compensation payments must be clearly defined and agreed to assure both parties. You should also notify CPMNZ ltd. about changes in compensation if ever a deficit occurs.

• The last term of the contract must include the arrangement on termination. The termination process must be legal and mutual to avoid hard feelings and bad blood between you and us.​

 

Contracts and agreements with agencies must indicate either a fixed date of termination or an indefinite one. UK/ European law state that the notice should have a minimum of one month for the first year, two months for the second year and three months thereafter. You may have to pay your agent one year of fees if you terminate the contract. However, if a breach has occurred on the agent’s part, then you have the right to terminate the contract as you wish.