Marc Posted April 19, 2015 Share Posted April 19, 2015 Hello, I would appreciate some comments on these elements from a distributor's contract we are looking at. The parts I'm questioning are from the contracts: 1.The distributor wants 100% reimbursement for samples. 2. "Supplier will pay Distributor a termination fee equaling 30% of Gross Sales, as determined by all cases sold the previous 24 months; retroactive from point of termination. The termination fee will always represent the previous 24 months." Thoughts? Link to comment Share on other sites More sharing options...
Sugar Daddy Posted April 19, 2015 Share Posted April 19, 2015 Unless there are 1) no other alternative distribution options and 2) they can guarantee sales, it sounds like a raw deal for you. A lot of things can go wrong with a product launch, and you should protect yourself. Link to comment Share on other sites More sharing options...
daveflintstone Posted April 19, 2015 Share Posted April 19, 2015 not good without guaranteed minimums. And it's common to go 50/50 on samples. Link to comment Share on other sites More sharing options...
bluestar Posted April 20, 2015 Share Posted April 20, 2015 confirm pretty much other responses. 50/50 for samples they elect to use, although some will require 100% for samples you direct them to supply, especially if they are out of state or far from local distribution area. if they are going to require a buyout, ask for a clause that says the buyout fee is waived if they are selling product below your required minimum per year. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now