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Thread: agency rights in south africa

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    Post agency rights in south africa

    dear members,
    reason for my this new thread is,
    i am a close corporation based in johannesburg.
    i also work as agent for a machine manufacturer in china and regarded as sole exclusive agent for this company.
    we try our best to stop any other company to import machines from same company and past three years we managed to barred any person to bring this machines here without our consent.
    last week one company in johannesburg, bought machines from my supplier in china to export S.korea but they brough those machines here with out our consent, now my question is, can we take some legal help to stop this company from selling these machines which already in south africa and also for future?

    manufacturer of this machine in china like to really stop this company to sell this machines in southern africa.

    any advice?

    thanks,
    kind regards

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    Why is the principal supplying machines to a buyer in a region for which he has awarded you sole agency?

    Any recourse you might have would be towards the principal, not another buyer. Agency agreements regulate between principals and agents, if you follow my drift.

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    zaidi110 (23-May-12)

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    Diamond Member adrianh's Avatar
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    Hi Fi Corporation is still grey importing lots of stuff....I'll say that there isn't much you can do. I've imported stuff directly from China to circumvent a k_k SA agent. Local agents tend to have huge markups for adding no value to the customer.
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    zaidi110 (23-May-12)

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    Diamond Member Justloadit's Avatar
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    The supplier in China has no control of where the machines go once they have been sold, as in the case you have mentioned. The buyer said it was for Korea, and now it has landed here in RSA.
    What is the manufacturer going to do? Stop selling to this client, who probably buys 10 to 20 times more than what you buy, simply to make you happy. I think not. The only way to buy loyalty, is to be a very large client, in which the amount of business you give the manufacturer far outweighs them selling to other people, and if you are only looking at the RSA market, it's not going to happen. The RSA market is on average between 2 and 3% of the world market sales.

    The world is far too small to have this kind of protection, and
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
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    Diamond Member AndyD's Avatar
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    Quote Originally Posted by Justloadit View Post
    The world is far too small to have this kind of protection, and
    AND!! You can't finish your post with an 'and'. I'm not going to be able to sleep tonight wondering what else was going to follow

    @Zaidi, when you say 'regarded as sole exclusive agent' is this in black and white in the agency agreement or was it just implied as they've never sold to another SA company?
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    zaidi110 (23-May-12)

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    Diamond Member Justloadit's Avatar
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    Hi Andy,

    Sorry about giving you a sleepless night, got interrupted by a lengthy issue when I was typing, and probably pressed the post button with out realizing it, my thought process got misplaced .

    What I was going to say, that sole distribution rights, or agencies are a buz word from the past, it no longer applies in today's business world. With advent of Google, internet and other communication tools, being a sole distributor is a thing of the past.

    What brand names do, and this can be seen in the automotive industry, is create products which only they can service and maintain. This then falls under "Franchise", where you buy all your testing equipment and spares from the main manufacturer. Having the brand name, does not guarantee business, as you are still competing at ground level against other Franchisors of the same brand.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

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    AndyD (23-May-12), zaidi110 (23-May-12)

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    Yes, I have a letter from them in writting with stamp that i am the sole agent for southern Africa. and recently they sent emails to cutomers here who has bought these machine in past through us confirming that we the only exclusive sole agent in southafrica.
    thank to all members who has take part in this thread

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    buyer has bought these machine for export to S.Korea but than he import these to south africa instead!

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    Site Caretaker Dave A's Avatar
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    As mentioned earlier, you really are dependant on the manufacturer to defend your interests.

    If you are responsible for the brand building and market development in your area, a sole distributorship agreement could even entitle you to a percentage of sales into your area if the product comes in via other channels.
    The trouble with opportunity is it normally comes dressed up as work.

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