2. Revenue model
Agents: The agent is paid by the supplier (exporter) through a commission on the sales value generated. The exporter sets the selling price, with inputs on local market by the agent.
Distributors: Distributors add a margin on top of the products’ prices and these fees are generally higher than agents’ fees. This margin affects directly the way you set the products’ prices. Suppliers often have to absorb the distributor margin in order to remove the risk of having a price to the end user which is too high.*
*The distributor model is impossible to apply for some exporters as their profit margin would be too small to give enough margin to the distributor and to have a competitive price for the end user.