| Brazil is the largest economy of South America . The | | | | Brazilian distributor, such as a maximum resale price. In |
| country is undergoing rapid change from a production | | | | practice, if the agent resells products (i.e. he acts as a |
| economy to a consumption economy. It is considered | | | | distributor), he is free to set his price and his |
| as one of the emerging economies with the strongest | | | | commission is the difference between his selling price |
| growth in the world today. It is a strongly industrialized | | | | and his purchasing cost of the product. However, if the |
| country which imports and exports a lot. These past | | | | sales agent is only an intermediary between his |
| few years have seen an improvement of the Brazilian | | | | principal and a customer, his function will be to bring |
| economy, inflation is under control, debt is reduced, and | | | | business to the principal, at the price set by the principal |
| the general risk for foreign investments is greatly | | | | since the sales agent does not sell products in his |
| reduced. | | | | name. |
| Enter the market through sales agents | | | | Other conditions are guaranteed by the Brazilian law, |
| Entering the Brazilian market can be interesting for a | | | | such as the right to a commission even if the contract |
| well prepared company. But there are numerous risks | | | | is cancelled because of factors due to the sales agent |
| to take into account on this complex market. The | | | | himself. In case of termination of the sales |
| easiest way is to rely on sales agents or | | | | representation contract without cause, the Brazilian |
| distributors.Selling directly in Brazil is made difficult by | | | | sales agent is entitled to compensation according to a |
| the language and cultural barrier. It is easy to find | | | | calculation formula defined by law. And for as long as |
| salespeople that speak Spanish, but it is a lot more | | | | the sales representation contract is not terminated by |
| difficult to find salespeople that speak Portuguese. | | | | either party, it is considered renewed for an indefinite |
| Brazil is a huge country. Unless you only have a few | | | | period by the Brazilian law. |
| potential customers in Brazil , choose as a sales agent | | | | Thus it is important to take into account these local |
| or distributor a mid-size company that has a global | | | | specificities in your contract with your sales |
| presence and offices in several cities. Smaller | | | | representative and to pay special attention to the |
| companies will often use other local sales agents in | | | | exact terms of the contract. It seems essential to |
| other regions. This is often unwanted as it favors the | | | | have your sales representation contract reviewed by |
| loss of control over product sales. | | | | a Brazilian lawyer, or by a lawyer specializing in |
| Advantages of a sales agent in Brazil | | | | Brazilian law. |
| Brazil is a country where administrative tasks can be | | | | The commercial details that matter |
| cumbersome and complex. A local sales agent will | | | | Note that Brazilians are very sensitive to product |
| help this process. Import regulations for instance can | | | | quality, technical assistance, training and after-sale |
| be difficult to understand. Be patient and understanding, | | | | service. These key points can make a difference |
| but also try to go to Brazil to work out the issues and | | | | between winning and losing a contract during |
| to understand the various barriers and cultural aspects. | | | | negotiation. |
| Draft the contract with your sales agent with care | | | | Good luck! And to find sales agents in Brazil , post a |
| Some common clauses are prohibited in Brazil . For | | | | free ad on RepGlobal.net. |
| example you cannot impose resale conditions to a | | | | |