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OLD Exclusive vs. Non-exclusive Distributor

OLD Exclusive vs. Non-exclusive Distributor

By GAP Polymers Team - On Apr 19, 2018 09:27

Have you ever wanted to know the difference between the exclusive and the non-exclusive polymer distributers, GAP polymers will help you to know the main differences between them. First we have to admit that distributors play a vital role in any industry, especially polymer distributing as they are appointed to increase the reach of polymers in the market, and they are responsible for carrying the demo goods into the market, so when the producers hope to expand their business in other parts of the country or other countries they searching for distributors, that’s why you have to deal with convenience distribution channels, here are a few reasons why producers need Polymer Distributors, According to GAP polymers expert’s affidavit, MR. Hossam Shehata: 

 

1.     Producers cannot reach all parts of the world by themselves; they can only access major points of highly demanded areas, but plastic polymer distributors know exactly how to reach a variety of markets, as the information they have is valuable, so they save time and effort.

2.     Polymer distributors can take care of distribution services, they have a workforce, vans, trucks, so transporting the goods to wherever will be guaranteed.

3.     They also can handle all financial problems, and they can help producers save money that can be pumped back to many important fields such as Sales or Marketing.

4.     Producers do not have a general cultural view of the markets they deal with, here comes the role of the distributor, who can manage cultural needs on the ground, besides producers’ products will reach the farthest corners of the country in no time. and in the current circumstances, we always see an absolute need for distributors to have the same culture of the homeland they deal with.

5.     Because marketing new grades is a hard challenge to any producer as they need technical supporters and a dedicated team who can make face-to-face deals, they will need help from a world-class plastic raw material distributor who can finish this easily. 

 

Now the critical questions in your mind are how to find an expert polymer distributor that can increase profits and market shares, when to choose an exclusive distributor, and when to choose an unexclusive distributor, Mr. HOSSAM gave us an accurate answer about the main differences between them:

 

1- The exclusive polymer distributor (there is no competition)

 

·        When the producers appoint an exclusive distributor of plastic resin, he will protect them from any competition that comes from the upper stream supply chain, because he is the only distributor who can sell the goods in any district, here the distributor cannot distribute any products that can compete with the producer’s product. 

·        Exclusive plastic raw material distributor never fears competition, because he is dealing with the same customers, through the same channels, so the producer will be on the safe side, and the producer will be in the comfort zone. 

·        When it comes to earnings, the exclusive polymer resin distributor guarantees that it will not be reduced in the distribution process, because of the absence of any other distributors in the same district. 

·        So, when the producers deal with an exclusive plastic polymer distributor, their role is limited to evaluating the distributor, to ensure that their products reach the target market, and to the higher threshold. but what if complications happened between the producer and the exclusive distributor, Here comes the advantage of the non-exclusive distributor. 

2-The non-exclusive polymer distributor (fair competition)

 

·        When the producer decided to deal with a non-exclusive polymer resin distributor, he takes the advantage of fair competition from two or three distributors, and he can divide his products according to their classifications, volumes, or applications, but he must ensure there is no competition between all the authorized distributors due to the code of business conduct and ethics. 

·        The competition between multiple plastic raw material distributors gives the producer the chance to explore new product demands that will be explored geographically.  

·        The need for non-exclusive plastic resin distributors increases to the producers who distribute in the third world and emerging countries, as no exclusive distributor can cover those emerging and high-population countries. 

·        The non-exclusive plastic polymer distributors try their best to meet the producer’s aspirations to earn more profit, by reaching new markets. 

·        All world-class producers prefer dealing with non-exclusive polymer distributors, but in our expert’s opinion, some challenges are going to face them such as: 

 

*Not all the multiple polymer raw material distributors are in the same level of competence, but this problem can be solved by setting a trial period then choosing between them due to the prequalification method that the producer put. 

*Producers must aim integration between distributors, it can be handled by dividing distribution areas such as northern and southern areas.  

 

The trick now is choosing between the exclusive and the non-exclusive polymer distributor, our expert’s advice to any producers is to set the right goals, but to be honest, he confirmed that the non-exclusive polymer distributor is the best in achieving goals especially because variables that appeared in the globe such as population, culture diversity, emerging countries, logistics barriers, in addition to the risk that the producer can face during dealing with the exclusive distributor, as he will be in a permanent danger that other producers will kick him out of the market.

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