Where has my margin gone? The art of enforcing favourable trading terms with your European clients and distributors

(Webinar Summary)

by: Christelle Damiens

On the 12th of March, we conducted a Webinar for the Entrepreneur’s program AusIndustry about Negotiating Favourable Trading Terms. It was called “Where has my margin gone? The art of enforcing favourable trading terms with your European clients and distributors”.

On the webinar Christelle explained what are Trading terms and how understanding these terms could make a huge difference in effectively enforcing favourable terms with European clients and distributors. The attendees learned that failure to understand trading terms and Incoterms could mean:

  • unfavourable trading terms for your business
  • reduced margins
  • delayed payments
  • late deliveries
  • being locked into an exclusive contract with an under-performing distributor

Our guest presenter, Michel Scheuble of Fracht Australia – an international International Freight Forwarding Company shared valuable insights about Incoterms. According to him  The more complex the supply chain the higher the exposure to possible risks along the way that is why in order to run a successful supply chain, It is essential for companies to mitigate or manage these risks.  He also provided a few examples of commonly used Incoterms, information about the transfer for responsibility cost,risk and insurance, and an idea of the possible changes in the new edition of Incoterms at 2020 which are:

 

  • Deletion of EXW and DDP Incoterms
  • Elimination of Incoterm FAS
  • Introduction of the new CNI Incoterm

 

Christelle Damiens also shared how to formalise a distributor price list along with some useful tips about setting the right Distributor Margin, Incoterms to use,what to avoid in delivery duties and lastly, how to negotiate a Distribution Agreement successfully by offering discounts that work for the business and doing the following:

 

  • Set Yearly KPIs
  • Monitor KPIs quarterly
  • Differentiated offer depending on performance
  • Discounts by meeting KPIs
  • Early payment discounts



We will be running webinars more regularly at Exportia, and we are glad that the attendees were able to learn the basic rules in negotiating and formalising their trading terms, preparing them to negotiate better terms with their overseas clients and distributors.

If you missed this webinar and interested to learn more, Feel free to send us your questions or requests at : christelle.damiens@exportia.com.au.

 

More Information

 

The “Where has my margin gone” webinar was brought to you by the Entrepreneurs’ Programme. The Entrepreneurs’ Programme assists eligible small and medium size businesses in the Five Growth Sectors to improve their productivity and competitiveness by providing professional business advisory and development services.

For more information go to this url and select Business Management-

https://www.business.gov.au/assistance/entrepreneurs-programme

 

2019-05-22T15:48:07+11:00