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Exporting Basics Appendix

APPENDIX: Sample Agent/Distributor Search Letter

Dear ______:

We are seeking representation for our products in your country and would welcome your possible interest. This will briefly describe who we are, what we do, what we are looking for, and how we prefer to operate. Our product brochure (enclosed) provides additional information.

ABC, Inc. is a leading U.S. manufacturer of two-way radio communications equipment for professional use. We offer vehicular mounted radios and base station radios. They are used by police, taxis, delivery services, etc. We are currently [exporting to ______ , but not yet in your country] [selling throughout the U.S., but not yet exporting].

Our firm was founded in 19__ with __ employees. We now have ___ employees, and our annual sales this past year totaled over $______. ABC, Inc. is capitalized at over $____, has modern plant facilities, and excellent profitability. Our financial and operations can be confirmed by national credit agencies. We are also a member of the [any relevant chambers or other organizations].

Our products are sold in the U.S. through a nationwide network of stocking distributors who purchase direct from our factory. The distributors must have the capability to install the equipment and provide local warranty and non-warranty service. The distributor must have adequate test equipment and be willing to not only inventory our radios, but service materials as well.

We prefer to deal with mutually exclusive distributors in each defined territory. We grant a __% discount (__% commission) from our recommended or suggested list prices and fully support our distributors with technical advice, express shipments when needed, and other support services. We would support our overseas representatives in the same way.

It is our policy to select and work with a dealer on a trial basis using either pre-payment or payment by a confirmed, irrevocable letter of credit. After a relationship has been established, and a distributor has demonstrated they can sell and service our products profitably, we are open to other credit and payment terms.

With kind regards,

ABC Inc.

Enclosure: (ABC, Inc. product literature)


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