Commercial agent or exclusive dealer? Choosing a route to market
When a manufacturer enters a new region, the first structural decision is who sells, who holds the stock and who carries the risk. The two models we know best are the commercial agent and the exclusive dealer; we have worked in both.
The commercial agent (representative)
The agent represents the brand, finds clients and supports projects, usually for a commission. The brand sells and invoices directly to the customer, and keeps control of price, terms and stock.
- Brand keeps price control and the customer relationship.
- Lower financial commitment for the local partner, so easier to start.
- Brand carries stock, credit and logistics risk.
The exclusive dealer
The dealer buys from the brand, holds stock, sells on its own account and takes the credit and service responsibility. The brand has one customer in the territory and a simpler operation.
- Brand has a single invoiced counterparty and less administration.
- Local partner is strongly committed, with stock and showroom.
- Brand has less direct control over end prices and customer data.
The distributor
A distributor typically serves many dealers and may carry several brands. It suits products with wide dealer coverage, but gives a brand less specific attention.
How to choose
- Strongly project-driven, design-led products often suit an agent who works with architects.
- Products that need stock, quick delivery and after-sales service often suit a dealer.
- A new brand with no local awareness may start with an agent and move to a dealer once volume justifies it.
- Territory size matters: a dealer in one country is not the same as a regional partner.
Legal points
Commercial agency is regulated in many EU countries, with rules that can include notice periods and compensation on termination. Exclusive distribution agreements raise competition-law points. Take legal advice before signing.
Questions to ask a partner
- Who are your existing clients and which brands do you represent?
- What stock, showroom and service capacity do you have?
- How do you handle quotations and project follow-up?
- What targets and reporting do you propose?
- How would the arrangement end?
Our experience
We have worked as a representative and, in the past, as exclusive dealer for Prolicht in Romania. That experience on both sides helps us advise on which model suits a brand and market.