Consultdustry Managers & Consultants - Serving Tech Industry in ASEAN Countries

ASEAN Sales Representative – Business Representative

“Flexible, Commercial Power On Local ASEAN Markets”

Note: Consultdustry do not work on the basis of no-cure-no-pay commission!

Our standpoint in representation is:
• mutual commitment,
• proven perspective / added value of the products / services and
• presence of available resources (budget).
You as a client expect:
• professional representation,
• no only a short-term approach (no hit & run)
• efforts obligation (an absolute performance warranty can not be provided),
• knowledge and existing contacts,
• constructive development of a market and
• adequate (potential) customer / account management.
According to us, this simply means also a neat fixed rate, expense compensation and a bonus fee.
We do not accept contracts on commission only, as commission based selling does not have a mutual obligation and will lead to a selected choice of fast, simple direct sales at a high bonus without commitment.

Our Representative Services

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 agency, we offer
• local market intelligence (researching & planning),
• local market presence (promoting),
• preparation and limited sales representation (initiating) and
• full sales office with a 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 wants – due to the often
low margins and high sales volume – to establish an own local branch firm or set a partnership
– the product line and sales procedures will be mostly channels, dealers / distributors network

Advantage and Disadvantages of Hiring a Sales Representative / Business Representative

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 local business culture,
• understanding and advanced local market experience and knowledge,
• entrance to new markets and customers / accounts,
• targets and the timeframe can easy 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.

Proposed Method & Agreed Activity Plan

Suggestions for a successful in cooperation with a sales representative / business representative
• first draw up an activity plan
• start a pilot project for a few months so that insights and cooperation can develop and expectations can be further tailored
(or the agreement will be terminated)
• just set reporting, basic time blocking and tackling, be committed and do not lose track,
• set mutually-agreed-upon expectations and goals,
• provide adequate sales 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/meetings 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 (paid) plan of activities (5 to 10 pages report), 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 / regulations
• identify potential points of entry
• define market strategy plan
• find the market gap, define competitive edge
• define other marketing mix elements
– product; regulations / certificates, design / features / quality, product range / lines, branding, packaging & labeling, services (complementary and after-sales service, repair), guarantees & warranties, return policy
– pricing; strategy and tactics, price-setting, allowances and discounts, payment terms / methods
– promotion (especially for market entrance this will be most costs and time consuming); advertising, PR, sales promotions, 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 (newsletter, site etc)
– Place; distribution, franchising, market coverage, location, inventory, warehousing and logistics
• develop, if desired, (local) partnerships
• nevertheless, always be revenue-driven

Costs of Hiring Consultdustry Representative

Costs of hiring Consultdustry sales representative / business representative services is
• a paid activity plan and paid pilot project (examine, measure, review & match)
• normally on the basis of a (realistic) fixed fee (in relation to possible commission fee), reimbursement of expenses and a bonus / 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.

Compare between Representative Office or Branch Office

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

© 2017 Consultdustry