Is Your Company Looking to Sell Products in Colombia but Facing High Local Distributor Margins That Drive Prices Up?
For international companies aiming to enter the Colombian market, distribution strategy can be a major challenge. While local distributors offer market knowledge and an established presence, their high profit margins can make your products uncompetitive. In this scenario, an international business broker is the ideal alternative.
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What Is an International Business Broker and What Do They Do?
An international business broker acts as your representative in Colombia without requiring an exclusivity agreement. Their main role is to facilitate the import and sale of your products locally, managing customs procedures, tax payments, and delivery to final buyers.
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What Are the Main Advantages of Working with a Business Broker in Colombia?
One of the biggest advantages is avoiding the high profit margins typically charged by local distributors, allowing you to offer more competitive prices. Brokers also don’t require exclusivity, providing greater flexibility. They handle all legal and customs processes, simplifying the import and sales operation.
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How Is the Cost of Working with a Broker Determined?
Instead of profit margins, brokers charge a service fee or commission for their role as intermediaries. This fee is usually lower than what distributors charge, resulting in savings for your company. It's also important to consider additional costs such as import duties, VAT, and any installation or on-site service expenses.
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What Legal and Regulatory Aspects Should Be Considered When Working with a Broker in Colombia?
It’s essential to comply with Colombian foreign exchange regulations and other applicable laws. A reliable broker should manage these legal matters properly to avoid issues or penalties. Working with an experienced and trustworthy broker is highly recommended.
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When Is It Advisable to Use a Business Broker Instead of a Distributor?
This approach is especially beneficial when local distributor margins make pricing uncompetitive, or when your company prefers not to enter into an exclusivity agreement. It’s also a smart option for testing the Colombian market before establishing a permanent presence.
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Working with an international business broker can be a cost-effective strategy for companies looking to expand into the Colombian market without exclusivity commitments. By managing all logistical and legal aspects, and offering more competitive pricing through a brokerage fee model, these professionals can simplify international expansion and help your business establish a strong presence in the country.
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If you want to learn more about this model, feel free to contact D-LOG Colombia at info@dietrich-logistics.com.co