Logistics and Financing

Starting with a European pricing strategy based on the brand owners pricing models. We calculate according an open calculation resulting in an exw Amsterdam price equal to all distributors. Having set the correct pricing model is crucial when starting business in new markets. By doing so we avoid unsatisfied distributors when checking each other’s prices and prevent grey market activities.

Starting in a new market environment is an investment you make with long term brand equity in mind. It’s essential that one provides a solid foundation for this equity in the early stages of brand development:

• Balanced & strong value chain framed with a calculated price chain> Strong RRP
• Relevant & integrated positioning

Given the fact that a strong value chain is essential for the foundation of long term brand equity, it’s not smart to make any compromises in cutting in to many bodies/percentages within the price chain for short term result:

• Giving away margin to sales agents has a short term sales effect but can compromise a price chain for the long run
• A&P based on volume creates a paradox:
  - Low investment in the beginning when its needed
  - Very high investment on the long run when investments need to be more measured

Conclusion

The decision in calculation A&P as a fee or a percentage needs to be very thoughtful. It always needs to be in balance with the strategy and the product lifecycle phase the brand is in.

• Organizing consolidated freight to our bonded warehouse in port of Antwerp-Bruges
• Pre finance stock
• Handling all import and excise obligations and documents
• Servicing back office
• 24 hour lead time for distributors
• Warehouse handling orders inbound and outbound
• Invoicing
• Excise management
• Legal advice labeling, product and documents
• Day to day communication with your country exclusive distributors
• E-fulfillment for your international webshop