Discount the goods 15% for the first five years and then renegotiate.        © 2001 Joseph Zodl

This will solve the problem on the surface. It is possible that in five years your product will be so well established in Mexico, and your relationship with the Distributor so strong, that you will be able to renegotiate on far better terms. But since your profit is 10%, this means you will lose 5% on each unit sold for the next five years. Part of your mission is to increase the profitability of international sales, not decrease it.

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