Does your company want to sell its products in Colombia but the margins of local distributors make the price too expensive compared to the competition?

For international companies looking to enter the Colombian market, the distribution strategy can be a significant challenge. While local distributors may offer an established presence and market knowledge, their high profit margins can make prices uncompetitive. In this context, an international business broker is the perfect alternative.

-

What is an international business broker and what is their role?

 -

An international business broker is an intermediary that acts as a representative for your company in Colombia, without the need for an exclusivity agreement. Their main function is to facilitate the import and sale of products in the local market, handling all customs procedures, tax payments, and delivery to final buyers.

-

What are the main advantages of working with an international business broker in Colombia?

One of the main advantages is avoiding the high profit margins that local distributors typically charge, allowing you to offer more competitive prices. Additionally, brokers do not require exclusivity agreements, providing more flexibility. They also handle all legal and customs procedures, facilitating the import and sales process.

-

How is the cost of working with an international business broker determined?

Instead of profit margins, brokers charge a "fee" or commission for their intermediation service. This fee is usually lower than distributor margins, representing savings for the company. It's also important to consider additional costs, such as tariffs, VAT, and any expenses related to on-site installation or technical service.

-

What legal and regulatory aspects should be considered when working with a broker in Colombia?

It is essential to comply with Colombian foreign exchange regulations and any other applicable regulations. The broker must properly handle these legal aspects to avoid problems or penalties. Additionally, it is recommended to work with a reliable and experienced broker in the Colombian market.

-

In what cases is it advisable to use an international business broker instead of a distributor?

This option can be especially beneficial when the margins of local distributors make prices uncompetitive, or when the company does not want to commit to an exclusivity agreement. It can also be a good alternative to test the Colombian market before establishing a more permanent presence.

-

In summary, working with an international business broker can be an effective strategy for companies looking to enter the Colombian market profitably and without exclusivity commitments. By handling all logistics and legal aspects, and offering more competitive prices thanks to their intermediation fees, these brokers can facilitate the process of international expansion and help companies establish a solid presence in the country.

-

If you want to learn more about this approach, you can contact D-LOG Colombia at [email protected]