Agents Beware Of "Margin" Trap

Moderator: Xiao Tang

Business hotline: 0, 3, 11, 8, 60, 5, 7, 5, 9, 4

Call Merchants: Hebei Xingtai Zhongyuan Trading Company

Introduction:

Hello, Xiao Tang!

I am a loyal reader of your magazine for many years, and I am very puzzled about one thing recently. I hope I can hear your opinion.

Recommended by friends, there is a new condiment.

I conducted a market survey on this product in Hebei and found that the condiment had certain market space.

As a result, he contacted the company and had the intention to act as the general agent in the Hebei area.

The factory claims that it can be a general agent at the provincial level, but it must pay a deposit of 100 thousand yuan, plus cash in cash.

Because the amount of the deposit is large, and the private account is provided by the enterprise, I propose to go to the enterprise for fieldwork, but I am refused by the manufacturer on the grounds of "recipe, raw material confidentiality" and so on.

Connection factory:

The first time I went to power, the second time I went to the electricity office: Yunnan Jiangchuan Australia banquet Co., Ltd. office staff: I have recorded the problems you reflected.

The question you said has been reflected to our headquarters. Our general manager will call you back as soon as possible.

The factory calls: Zhou Ying, general manager of Yunnan Jiangchuan Australia banquet Trading Co., Ltd.: Thank you for your attention, thank you for your communication between manufacturers.

In fact, why do we allow merchants to pay part of the credit margin? Because we often encounter such a situation. Some customers who are not trustworthy, just send information on impulse, or ignore them after placing orders.

In order to reduce our direct economic losses, the company will allow dealers to pay part of the deposit or credit margin.

According to the situation of businesses around the country, we can consider reducing or cancelling the margin as appropriate, because we are also specific analysis of specific circumstances.

For example, we are abolish the mode of market promotion by provincial agents, but adopt regional agency system.

As for the 100 thousand yuan margin according to the local conditions (consumption level and economic environment, etc.), we can not accept, but must have the minimum of 30 thousand yuan of the first goods.

You can convey our meaning to the company or ask them to contact me directly.

When the reporter asked whether he could let the dealer go to the factory to see it, he was declined by Zhou manager.

Xiao Tang's viewpoint:

In order to maintain market order and control dealers' behavior, manufacturers often charge a certain amount of margin to dealers.

It is understandable that a manufacturer receives a bond, but there are such enterprises that collect the misdemeanor of the guarantee money: turn around and disappear after receiving the money; use the margin as the working capital of the enterprise; carry out illegal financing.

This increases the risk of dealers' capital, so businesses should be vigilant and guard against "margin traps".

First, dealers should not believe what they hear and believe what they see.

In particular, we must go to the production site inspection to make sure whether the product is produced by the manufacturer's own production line and the production capacity.

Second, we should carefully check the qualifications of the manufacturers, including the necessary documents, such as business license, tax registration, legal person code certificate and other licenses, such as production, hygiene, quality and so on, to prove the legitimacy of the production and operation of enterprises.

Third, carefully study the manufacturer's investment products to determine whether the manufacturer is a karate "leather bag company".

On the one hand, it is clear whether the product is a new product, whether it has been packaged by other brands or product names, and whether it has ever been invited or listed; on the other hand, it should examine the ownership of intellectual property rights, including trademarks, patents, and so on, so as to prevent manufacturers from "selling sheep's head to sell dog meat".

Fourth, we need to analyze whether the deposit is a plan for enterprise to collect money.

In the process of attracting money, the main source of profits of enterprises is the first batch of two parts, namely, the first batch of purchase and margin. The investment enterprises usually use the "exclusive distribution rights" as bait to raise the amount of the first batch of purchase and margin.

Therefore, dealers should scrutinize the contract carefully. If the deposit is normally charged, the standard of collecting margin, return method and other management methods will be generally explained in the contract.

Whether the margin clause is reasonable or not is the key to whether the distributor should sign the contract and pay the deposit.

Fifth, adjust the mentality of cooperation.

Too eager to cooperate will often lose rational judgement. Therefore, we should calm down in the process of negotiation.

The "security trap" link:

In 2004, Huayang famous food company invested the whole country with the identity of "the national distributor of Illi star oxen colostrum".

Dealers have signed contracts with them everywhere.

Ms. Zhang, a dealer in Shenyang, said, "I am the sole franchisee in Shenyang market. I paid 30 thousand yuan to Beijing, but I didn't see any money."

Quanzhou dealer Mr. Chen told reporters: "has paid the loan and the security nearly one million yuan, Beijing Huayang sent me a batch of goods, bundled the products of Yili Tianhua milk and Yili bovine colostrum, and then the milk tablets were seized by the industry and Commerce Department in Quanzhou, and never received any more products."

These dealers have invested hundreds of thousands of dollars, and some of them have invested millions. Beijing Huayang classic Food Co., Ltd. has completely disappeared from the market after receiving nearly ten million yuan market margin.