Sourcing · territory, margin, price protection

Distributor Terms: Territory, Margin and Price Protection

The distributor bears territory and margin risk when exclusivity, undercut rules and price-change notice are left vague. Close it with three written levers: a mapped territory with a volume gate, a published 2026 distributor net list with notice before increases, and tiered discounts by metres and tonnes so margin is predictable before the container sails.

Who holds the risk: Distributor — until terms are written
Three levers: Territory · price notice · volume tiers
Payment: T/T 30% + 70%; L/C at sight
Read: 11 minutes

Distributor reviewing aluminium T-slot stock in a warehouse

Short answer

Exclusive distribution is not automatic: it is granted for a named territory only when an annual volume gate and performance review are in the agreement. Price protection means a published distributor net list in USD for 2026, at least 30 days’ written notice before an increase, confirmed POs locked at the old net, and a defined inventory credit if list prices fall while stock sits in the warehouse. Undercutting by another buyer in the same market is the distributor’s commercial loss unless the contract stops supplier direct sales and new appointments in that territory, with a notify-and-cure path. Payment remains T/T 30% deposit + 70% before shipment or L/C at sight; goods move under FOB / CIF / DAP / DDP. Quality references stay EN 755-9, EN ISO 7599 and GB/T 6892 on every stock PO.

Bundled aluminium T-slot profiles packed for distributor shipment — Stock programmes still ship on ISPM 15 cradles; discount tiers follow metres and tonnes, not hope.

Do you offer exclusive distribution in the US

Exclusive distribution in the US — or any other named market — is available only as a written appointment tied to a territory schedule and a minimum annual volume, not as a default on the first PO.

Non-exclusive supply is the starting point for new importers. Exclusivity, when granted, lists the geography (states, countries or named metros), the product series covered, house accounts reserved to the factory, and the annual tonne or metre gate. Miss the gate after a cure period and the appointment converts to non-exclusive or a second stockist may be added. The table uses the same structure for each market buyers ask about.

Market	Territory definition	Exclusivity form	Carve-outs	Contract must say
United States	US states or named metro list	Exclusive only if annual volume gate met	House accounts + online passive sales carve-outs	Written territory schedule + annual review
Germany	DE + optional DACH	Exclusive tied to tonnes/year	OEM national accounts reserved	Written territory schedule + annual review
United Kingdom	GB postcode regions	Exclusive or sole stockist by series	Direct project bids listed in schedule	Written territory schedule + annual review
Canada	Provinces named	Exclusive on performance review	Cross-border US fulfilment rules	Written territory schedule + annual review
Australia	States / NZ separate	Exclusive with stock depth clause	Sea lead-time buffer in SLA	Written territory schedule + annual review
France	FR + optional Benelux	Non-exclusive default; exclusive on gate	Language pack + CE docs	Written territory schedule + annual review
Nordics	SE/NO/DK/FI named	Exclusive per country or cluster	Cold-chain packing not required; ISPM 15 still	Written territory schedule + annual review
Southeast Asia	Country list (SG/MY/TH/VN…)	Usually non-exclusive multi-stockist	Parallel import control language	Written territory schedule + annual review

What happens if another buyer in the US undercuts me

If another buyer undercuts you in your market, you absorb the margin loss unless the distribution agreement forbids supplier direct sales and competing appointments in that territory and gives you a notify-and-cure remedy.

Resale prices are set by the distributor; we do not police street price. What we can contract is channel discipline: no active solicitation of your named accounts, no second exclusive appoint in the same map while you meet the gate, and a credit or exclusivity review when a breach is proven. Passive online enquiries and pre-listed house accounts need explicit schedules. The table repeats the same logic per market.

Scenario	Who bears it	What the contract should say	Mitigation
Another buyer undercuts in United States	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in Germany	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in United Kingdom	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in Canada	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in Australia	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in France	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in Nordics	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)
Another buyer undercuts in Southeast Asia	Distributor bears margin loss unless contract bans supplier direct / third-party appointment in territory	No active solicitation by supplier; notify + cure; credit or reclaim exclusivity	Named house accounts; MAP-style list price optional (resale free)

How do you protect distributor pricing in the US

Distributor pricing is protected by a published net list, advance notice before increases, locked confirmed POs, and an inventory credit window when list prices fall — the same mechanism in every market, including the US.

In 2026 quotes, nets are stated in USD per metre or per tonne with alloy, finish and Incoterm clear. Billet movement can be footnoted as an index; it does not silently rewrite a confirmed line. Stock rotation and price-drop credits apply only to sealed, unsold inventory bought at the higher net within the agreed window (typically 30–60 days). Quality on stock POs still cites EN 755-9 extruded tolerances, EN ISO 7599 anodising and GB/T 6892.

Market	Price basis	Increase notice	Protection mechanics	Cadence
United States	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
Germany	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
United Kingdom	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
Canada	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
Australia	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
France	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
Nordics	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note
Southeast Asia	Published distributor net list in USD (2026)	30 days written notice before increase	Open confirmed POs locked; inventory credit window 30–60 days on stock reduction	Quarterly price sheet + billet index note

Which series profile to use (by series)

Distributors should stock 20 / 40 / 45 series as the high-turn core and treat 50 / 60 series as forecast or press-to-order — series choice is a slot, load and hardware decision, not a branding one.

Match the slot class to the hardware ecosystem your customers already buy. Deep inventory on heavy series ties cash; thin coverage with a clear lead-time promise sells better. Link pricing maths to how die cost amortises per meter when a private-label die is part of the programme.

Series	Slot	Typical use	Load band	Verdict
20 series	6 mm class	Light guards, small fixtures	Low	High turn SKU for distributors
30 series	8 mm class	Light frames, displays	Low–mid	Stock with 20 for mix
40 series	8–10 mm	Machine guards, workstations	Mid	Core distributor line
45 series	10 mm class	Industrial frames, conveyors	Mid–high	Core; match hardware ecosystem
50 series	10–12 mm	Heavier frames	High	Stock on forecast, not deep
60 series	12 mm class	Heavy structures	High	Press-to-order; thin distributor stock

Is there a distributor margin structure

Yes — margin is the gap between the distributor net (off the published list) and the reseller’s own street price, plus any quarterly rebate earned against the annual volume gate.

We do not fix resale prices. Structure in the agreement: (1) base off-invoice discount by partner tier, (2) volume breaks by metres/tonnes on the PO, (3) rebate accrued on paid shipments inside the contract year. Payment T/T 30% + 70% before shipment or L/C at sight keeps nets clean; overdue balances pause rebate payout. Tooling for private sections follows who owns the die.

What is the minimum annual volume for a distribution agreement

A formal distribution agreement usually starts when the parties can commit to a reviewed annual volume in the low tens of tonnes (or the metre equivalent for light series) — below that, ordinary PO supply is the right tool.

Exclusivity gates sit higher than a plain stockist agreement and are set per territory in writing. First-year plans often use a ramp: provisional non-exclusive for two quarters, then exclusive if the gate is met. New-die programmes still observe minimum order with a new die and the 7–12 day tooling adder on die making adds 7–12 days.

What discount do you give a distributor ordering (by variant)

Distributor discounts step up with order size — 100 m, 500 m, 1 t, 2 t, 5 t and annual-frame tonnes — and are written as net off list, not as a verbal “best price”.

Exact percentages sit on the 2026 price sheet for the alloy/finish pair; the table below states who benefits and what the contract must lock. Mixed SKUs on one sailing can aggregate toward a tonne break when the agreement allows. Incoterms FOB / CIF / DAP / DDP change landed cost, not the net-metre discount logic.

Scenario	Who bears it	What the contract should say	Mitigation
Distributor order 100 m	Buyer pays list; thin volume leverage	Entry net = list minus base distributor off-invoice (single-digit %)	Combine SKUs to hit next break
Distributor order 500 m	Shared: better press fill	Step discount vs 100 m band on same finish/alloy	Standard stock lengths 6.02 m
Distributor order 1 tonne	Seller production efficiency	Tonne break on net; confirm kg/m for section	Plan one sailing; FOB Shanghai/Ningbo
Distributor order 2 tonnes	Seller	Deeper net; eligible for frame rebate accrual	Mix series under one PO
Distributor order 5 tonnes	Seller schedule priority	Best standard tier before annual deal	FCL packing ISPM 15 cradle
Annual frame ≥ agreed tonnes	Both — volume gate	Contract net + quarterly rebate; exclusivity review	T/T 30/70 or L/C; price review notice 30 days

RFQ checklist — distributor terms

Territory map — countries/states and series covered.
Exclusive or not — volume gate, cure period, house accounts.
Net list — USD 2026 sheet, notice period, inventory credit.
Payment & Incoterm — T/T 30/70 or L/C; FOB / CIF / DAP / DDP.
Stock mix — series, finish, target metres per quarter.

Send your territory map, target annual tonnes and the series you will stock. We return a draft appointment schedule with nets and gates.

Four distributor-term failures

Exclusive with no gateUnconditional exclusivity blocks the market when sell-through stalls.

Verbal netsWithout a dated price sheet, every invoice becomes a negotiation.

Silent direct salesIf house accounts are unnamed, undercutting looks like betrayal.

Ignoring die titlePrivate-label dies need ownership clauses before stock builds.

Related on this site

how die cost amortises per meter — private-label cost maths
minimum order with a new die — stock programme gates
die making adds 7–12 days — promise dates to your customers
who owns the die — tooling title on distributor dies

Terms used in this article

Exclusivity gate: Minimum annual volume that keeps exclusive rights active.
House account: Customer reserved to the factory and listed in a schedule.
Distributor net: Unit price to the distributor after agreed off-invoice discount.
Inventory credit: Credit when list prices fall on unsold stock bought higher.
Call-off / frame: Annual agreement with releases against a volume plan.

Questions buyers ask

What happens if you sell direct to my customers

If the agreement is exclusive and the customer is not a listed house account, direct active sales in your territory breach the appointment. Remedy is written notice, cure, and commercial credit or reinstatement terms. Non-exclusive agreements allow factory direct sales; know which form you signed.

What is the onboarding process for a new distributor

Share territory map, target tonnes, series mix and credit references. We issue a draft appointment, 2026 net sheet and sample/stock plan. First orders run on ordinary PO terms (T/T 30/70 or L/C) while the agreement is signed; exclusivity starts only when the written gate is in force.

What if a distributor shipment arrives out of tolerance

Open a claim within 30 days against EN 755-9 with measurements and the mill certificate. Stock held for resale should stay sealed until the path (rework, concession or remake) is agreed so evidence remains intact.

Who owns the tooling on a distributor private-label die

Title follows the tooling agreement: buyer-paid dies transfer after full die payment; factory-amortised dies stay with the factory until buy-out. Distribution rights and die title are separate clauses — see who owns the die on this site.

What is the claim window on distributor stock

Seven days for visible transit damage, 30 days for dimensional defects from delivery at the named place. Keep bundle IDs and ISPM 15 packing photos. Quality standards on the PO remain EN 755-9, EN ISO 7599 and GB/T 6892.

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Send territory map, tonnes and series mix

List the countries or states, the annual volume you can commit, and whether you need exclusivity. We return a draft appointment with 2026 nets, gates and price-notice language.

Request a distributor terms draft