Consultdustry Managers & Consultants - Serving Tech Industry in ASEAN Countries

ASEAN Sales Representative – Business Representative

Consultdustry can be your local ASEAN sales representative or business development agent, a practical, cost-effective solution, for being your local satellite sales and business representative office.

As a sales representative / business representative, we offer
• local market intelligence (researching & planning),
• local market presence (promoting),
• preparation and limited sales representation (initiating) and
• full sales office and focus on rapid access to (large) accounts (operating).
Within Consultdustry we have divided our sales representative / business representative services in the previously mentioned 4 phase of
• research & plan, promote, initiate and operate.

Consultdustry offers these sales representative / business representative services for the following markets;
• Business to Business (B2B), these are;
– as sales presence, establishing a local branch firm will be too costly, due to often low sales volume but with high prices in this segment of
– public or closed tenders on project and indirect sales, in which general a pre-qualifications are needed
– private direct sales will be limited mostly to raw material or production goods
– the product line and sales procedures will be
— direct sales: (production) goods, raw material
— indirect sales: government procurement, maintenance & repair, operating supplies
— projects slaes: capital goods (investments/capex), public private partnerships, services
• Business to Consumer (B2C), these is;
– development and “sales gap” management, gradually organizing a sales local structure, as eventually the principal client clients wants – due to the often low margins and high sales volume – to establish own local branch firm or set a partnership
– the product line and sales procedures will be
— sales procedure is mostly channels, dealers / distributors network

The advantages of sales representative / business representative are
• direct availability of the service: business representative,
• obtainable for all principal clients (for investors, SME, narrow product line companies to MNC),
• very effective to manage (by the principal client),
• using shared service gives greater market coverage and multiple business connections,
• guidance in understanding of business culture,
• understanding and advanced market experience and knowledge,
• entrance to new markets and customers / accounts,
• targets and the timeframe can be set – and by doing this the costs and risk are known
• avoiding large investments and setup costs (subsidiary is not warranted)
A sales representative / business representative is an ideal model for to gain insight (market, law, administrative and financial requirements) and to conduct marketing, general liaison activities and other non-transactional operations.
Possible disadvantages of a sales representative / business representative;
• not having total control,
• client principal not being realistic about target and sales results,
• misfit in management style, business development and sales strategy and/or personal empathy,
• ownership customer of relationships; are they transferrable to client principal or get the reps the favour.

Suggestions for a successful in cooperation with a sales representative / business representative
• just basic time blocking and tackling, be committed and do not lose track,
• set mutually-agreed-upon expectations and goals,
provide adequate support, as an increase marketing & sales activities will need backing of customer service, tender processes and quotations, marketing and technical specifications and customizing by engineering,
• often overlooked but define sales training and joint sales calls into the region
• and specify and allocate funds to the 4 sales representative phases of research & plan, promote, initiate and operate

Our usual next step is that we draw up a plan of activities, which includes among others;
• research and plan; select and prioritize
— choosing the right country or region
— check cost of doing business
— know the people
— know the competition
— choose the right partner
— understand the challenges
— know the law
• identify potential points of entry
• define market strategy plan
• find the market gap, define competitive edge
• define other marketing mix elements
— pricing
— promotion; especially for market entrance this will be most costs and time consuming;
—- sponsor events
—- get published in media, journals
—- join business associations / employers’ organization
—- attend meetings of professional groups, conferences, exhibitions etc.
—- invite potential customers to headquarters
—- setting up a periodic
— distribution
• develop, if desired, (local) partnerships
• nevertheless, always be revenue-driven

Costs of hiring Consultdustry sales representative / business representative services is
• normally on the basis of a fixed fee, reimbursement of expenses and a commission fee
• if development business in a certain region without existing sales, we prefer a monthly “region development fee”
• if we have to invest our time into a long sales cycle to develop accounts, we would like to have exclusive region rights and a sales commission whereat the level of existing and future sales commissions will depend and based on contribution of opex cost and/or the monthly “region development fee”
• enquiry to client principal are without obligations and some pioneering to estimate the success rate are obviously at our expense.

A sales representative or business representative are often incorrectly perceived as a Representative Office or Branch Office there is an overlap, but the last 2 are based on a different business model and have another obligation as the hiring sales representative services as we provide.

In short there are mostly – depending on the country law(!) – the following difference
•Representative Office
– is a registered company (legal entity by country law, less incentive to regulate as branch office)
– represents the foreign parent company
– is not allowed to buy or sell products or provide services
– may enter into contracts on behalf of its foreign parent company (but no contracts closure by itself)
– is able to rent office and employ local staff (sometimes through local labor agent and or special employment arrangements), but foreign staff may be restricted
– business tax and corporate income tax are mostly chargeable based on the operating costs
– low capital investment, compulsory expenditure over a period of time
• Branch Office
– is a registered company (legal entity by country law)
– performs the same and my acts as a commercial representative office, but has greater power as its
– earns direct income domestically
– can be engaged in service, trading and manufacturing sectors
– required capital will depend on type and size of business
– restrictions to foreign staff and work permits
– ownership restriction may be imposed
For more information, legal assistance and company registration, you are invited to contact us.

Code of Ethics
By following a “Code of Sales Representative / Business Representative” Consultdustry wants to create professional, transparent, effective business partnerships that serve ASEAN markets in the most cost-effective manner.

© 2016 Consultdustry