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The document titled 'Confirmation - Respond to Business Enquiry on Distribution' is an important document that serves to confirm the key terms discussed and agreed upon between the sender and the recipient regarding the distribution of products through the sender's channels in markets. The document begins with a formal greeting and expresses gratitude for the recipient's interest in distributing their products through the sender's channels.
The document provides a detailed introduction to the key terms that will be included in the distribution agreement. These key terms include:
1. Exclusivity Period: The document confirms the agreed-upon exclusivity period, which is the number of years during which the sender will act as the exclusive distributor for the recipient's products in the markets.
2. Distribution Margin: The document confirms the agreed-upon distribution margin, which is the percentage added to the import price of the products to determine the selling price.
3. Marketing Budget for Launch: The document confirms the agreed-upon marketing budget for the launch of the products. The document specifies whether the budget will be borne by the sender, the recipient, or shared equally between both parties.
4. Marketing Budget for Subsequent Years: The document confirms the agreed-upon marketing budget for the subsequent years. Similar to the launch budget, the document specifies who will bear the expenses.
5. Import and Customs Duties: The document clarifies that the responsibility for importing the goods and paying customs duties lies with either the sender or the recipient.
The document also mentions the enclosure of the sender's latest catalogue and price list, along with the offer of a special discount to major distributors. The sender expresses their anticipation for the recipient's confirmation, after which they will proceed to prepare the contract accordingly.
In summary, this document serves as a formal confirmation of the key terms discussed and agreed upon for the distribution of products, providing a detailed introduction to each of these terms and highlighting their importance in the upcoming distribution agreement.
1. Confirm Exclusivity Period: Ensure that the agreed-upon exclusivity period, which specifies the number of years for which the sender will act as the exclusive distributor, is accurately stated in the distribution agreement.
2. Specify Distribution Margin: Clearly state the agreed-upon distribution margin, which is the percentage added to the import price to determine the selling price of the products.
3. Determine Marketing Budget for Launch: Discuss and finalize the marketing budget for the launch of the products. Decide whether the budget will be borne by the sender, the recipient, or shared equally between both parties.
4. Agree on Marketing Budget for Subsequent Years: Reach an agreement on the marketing budget for the subsequent years. Clarify who will bear the expenses associated with marketing activities.
5. Clarify Import and Customs Duties: Clearly define the responsibilities for importing the goods and paying customs duties. Determine whether the sender or the recipient will handle these tasks.
6. Review Catalogue and Price List: Thoroughly review the enclosed catalogue and price list provided by the sender. Take note of any special discounts offered to major distributors.
7. Provide Confirmation: Once all the key terms have been reviewed and agreed upon, provide a formal confirmation to the sender. This confirmation will signal the sender to proceed with preparing the distribution agreement according to the agreed-upon terms.