What is the best way to control distributor pricing to end users?

Question

I recently found that a distributor is charging an unrealistic price to customers locally. This is making the product uncompetitive and I need to get the distributor bought into this, keep them motivated and get them to reduce their price! What advise can people give me.

Thanks

Answer

I work a lot in Russia, and there the perception of quality will sometimes override price. The customer chooses the higher priced service or goods because they perceive that ‘Made in Britain’ means high quality. It may be the same in some other countries.

However, your distributor may have other irons in the fire, and is overpricing your product in order to sell rival producers’ offerings for a higher commission. It’s a tricky judgement, but the hint of looking to change distributors may focus their minds. If that doesn’t work, maybe a change of distributor is in the best interests of both parties.

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