Strategically Speaking: Outsourcing Your Distribution—The RFP Process Made Simple
A step-by-step guide to effectively evaluating potential partners.
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• Customer references. While references provided by the distributor will only be from satisfied customers, they are nonetheless valuable and should be thoroughly researched.
• Fee structure. Distributors typically will quote services on a transaction basis or as a percentage of net sales. The publisher should specify the preferred pricing method, but for ease of comparing prospective costs with historical spending, the percentage of net sales method is recommended. In addition to the base costs, the distributor should be asked to provide a detailed list of costs that are not included in the base fee, such as excess returns charges, excess inventory, customized reporting fees, etc.
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David Hetherington
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