We are considering retaining a sales agent/distributor to place our products in stores and service these accounts.
If we terminate the agent's services in the future what would be our terms regarding the continued sales of our product by the stores? Do we pay the agent a commission for the rest of eternity even though we would be servicing these accounts?
Is there a limit to this time as recognized as standard in the "industry" of sales agents?
Is there a precedent for offering product to potential independent dealers to place in their stores as something of a consignment/special offering?
Our product moves well enough when on display at our current clients, yet as a new concept we are having difficulty bringing new customers on line. In this stale economic situation they don't want to take a chance on products without a solid track-record.
We provide a small quantity of product, the dealer displays the product and we invoice for re-orders. The initial product becomes sort of a "running" balance until the dealer wishes to opt out then we accept the returns or bill for what is used. We're discussing levels of less than 5$-$10 per item wholesale.
Just curious if this is something businesses have done before with any success.
I was taught to study the past, but do not think for a moment I could change it. Take what you got and change the future.
A working owner files for an l.l.c. and proceeds to invest his own cash into building on an invention. He acquires a patent through a lengthy and costly legal quest. He funds a 4 year development of the product and subsequent acceptance by the major retailers in his market.
He retains a patent, a working product, a reliable manufacturer, and shelf space with the market's major online and brick and mortar retail outlets.
My question is, for personal financial purposes as owner and "employee" of the new company, can the owner state the invested monies to start the company as an asset that he possesses and if so, how is that asset offered?
It's not going to take the planet by storm, but the owner is well set-up to make a reasonable living selling this product at least for the next 20 years. Thanks for any advice you can offer.