Successful negotiations
Thanks to the constructive engagement of both sides, negotiations on first articles of the contract have been finalised without major problems. Nevertheless, as I could suppose, the Distributor asked for exclusive distribution rights and the right to appoint sub-distributors. I opposed to this desire all arguments which were available, among them of course the competition aspect and direct control over the market. As a result, agreement has been reached on the sole distribution rights and no sub-distributors allowed. Although, in order to compensate this “loss” for the Distributor, I was obliged to modify Article 3 which focuses on the promotion outside territory. I am aware that extending sales to other European Union countries is a little bit a risky. In this moment, we are not able to say how we will approach other countries in the future and what is more, it is some kind of obligation for us to make some supplementary enquiries within certain territory. Unfortunately, it is never possible to gain all advantageous aspects.
As far as the advertisement and promotion are concerned, we didn’t introduced any changes to article. It is obvious that the Distributor should incur all these costs as he will be making direct profits from the sale of our products. That is why I tried to explain that I do not see any reason to share advertising and promotion expenses.
The next significant point of our negotiations concerned Incoterms as they are key elements of international contracts of sale. It is our interest and intention to choose the best and most satisfactory terms of trade possible in order to avoid assuming risks and paying transport and insurance charges. That it is why I strongly insisted on keeping Ex-works terms. We are