"What product exclusivity am I getting?" This is a common first question asked by prospective distributors considering a draft distribution agreement.
It's usually followed with a money question such as: "How much do I have to pay the supplier or manufacturer?
Let's consider these questions and techniques for assessment of distribution proposals and draft distribution agreements. The aim is to design realistic, workable and practical arrangements between manufacturers, suppliers and distributors.
The starting point is to recognise that these exclusivity and money questions are often based on assumptions due to what we'll call a 2D view of distribution arrangements. Having drafted or reviewed over 350 distribution agreements, I see them in 3D.