ADVANTAGES OF USING SALES REPRESENTATIVE IN RUSSIA

What advantages international business can recieve by using Sales Representative in Russia?

1. Sales
Main advantage of using Sales Representative in Russia is that you gain access to really big market. Russia is a huge area which is more than one-eight of the Earth's inhabited area.

2. Minimization of your business risks on the market
Using Sales Representative in Russia you do not need to register branch office or representative office in Russia. This means you do not need to interact with numerous Russian Authorities which will definately save your time and nerves.

3. Flexibility 
When using Sales Representative you can quickly change your presence on the market depending on the situation and market condition.

4. Cost Effectiveness
When using Sales Representative you pay monthly fee plus percentage from sales turnover. You do not need to pay for office costs, salary to your employees, payments to social funds, etc.

5. Overcoming market peculiarities
Russian business model still have some peculiarities, using Sales Representative gives you knowledge of tricks and traps which cannot be seen from first sight.

These are advantages of using Sales Representative in Russia, but there are disadvantages as well:

Main disadvantage is that Sales Representative Company is not your Company but your Representative Company. If Sales Representative is not professional or does not have necessary experience in international trade it may have negative influence to your sales figures.

Another possible disadvantage is misunderstanding between Parties which may occur especially on first stages of collaboration.

HINTS: 

1. Discuss your proposal to Customers in Russia in details. Ensure your Sales Representative understands your Company sales policy the same way that you do. (Sales pricing, Discounts, Terms of Payments. Minimum Order, Incoterms, etc.)

2. Use professional Sales Representative. This will save your time and money.

Regards, SPB BUSINESS GATE