Protected Territory or Exclusive Contract

[summerbug]

I did some searching on these terms but haven't come up with many threads. For anyone out there that offers an exclusive contract or offers protected territories, I'd love some suggestions.

I am assuming I will offer the exclusive to just this particular street of shops (it's a high traffic shopping district) and require a yearly minimum order amount.

Does anyone have any suggestions or possibly an example of an exclusive or protected territory contract I could use as a starting point?

Any help is greatly appreciated!

[Vicky_CO]

That was always a tough one for me I would have like you said a minimum that they would have to meet. I would also put in a range. Say 4 to 6 blocks because if it like out main street here and you are selling to someone on the 200 block then it really would not interfere with someone selling on the 700 block. Unless a retailer asked for it I would not grant exclusive rights to any selling area.

[barncat]

It's a waste of time for that. Unless they can show me the money that they will commit to a few thousand $ a year...not worth it. I've done it in the past, but if they have a 2nd location they can easily get it shipped there then move it next door to where its already being sold(i actually have a couple stores like that). But honestly, the chances of selling to neighboring shops are pretty slim unless you are a big company.

[summerbug]

Vicky_CO - that's true I may need to go down to block instead of street. And yes, I am only wanting to be prepared with information if the retailer mentions protected territory, otherwise I definitely don't want to offer it.

Barncat - you raised a good point about other shops with an additional location nearby the exclusive. Thanks!

On this particular neighborhood of shops I personally see the same brand products in several of the stores so my plan is to not even mention an exclusive.

Thanks!

[Cantaloupe Lady]

When I am asked this question, I let them know that I make every effort to maintain exclusivity especially if it is a small town. As your relationship grows, you can ask them if "so and so's store is too close." Or you can even ask the store that is inquiring. Most owners are very careful not to tread in other peoples territories. (of course, there is always the bad apple)

I have refunded a customer back on a few items because I wanted to be in a store near theirs. They hadn't re-ordered in 6 months, so it worked out for both of us.

Hope this helps!

[sockmonkey]

What I found was that some of the people asking for protected territories are the ones who would buy the least--the bare minimum, which isn't worth protecting.

If you choose to offer protected territory it is important to establish a dollar amount and the time frame in which they have to purchase the set amount. Retailers know it's the way it works. If they sqwak about the dollar amount, then suggest they do private label, which is actually better than protected territory. Sure it costs them a little bit more, but it's more exclusive and a guarantee that they will return to the store when they want more because they think they can't get it elsewhere.

[summerbug]

That's a good point; if they mention protected territory I may bring up private labeling as an alternative! Thanks

What I found was that some of the people asking for protected territories are the ones who would buy the least--the bare minimum, which isn't worth protecting.

If you choose to offer protected territory it is important to establish a dollar amount and the time frame in which they have to purchase the set amount. Retailers know it's the way it works. If they sqwak about the dollar amount, then suggest they do private label, which is actually better than protected territory. Sure it costs them a little bit more, but it's more exclusive and a guarantee that they will return to the store when they want more because they think they can't get it elsewhere.

[Circle]

You can never tell on new accounts in the area, so sell to those that want and when it comes to repeat orders, then you can determine who has that territory or not based on their purchase amount. A prime example is if you have a stall at a gift fair or simillar, you will sell to anyone you feel that qualifies to buy, you don't distinguish between areas. People have to realise that the world is a small place and some may stock the same as their neighbour store, FACT. They might have to order lines that the other stores don;t have for eg