I agree that the comment below is correct. I have had similar conversations with distributors/reps as well. While on the surface it seems it works for everyone involved, it can quickly grow arms and legs and thus you turn it back over to your distributor (in this case SMS) and let them deal with the opportunity as they see fit within their existing dealer network. in this case - SMS is the master distributor and the dealers would be sub distributors. the contract is with HJOE and SMS. SMS has to meet certain requirements to remain the master distributor and so they need to make sure they build up the dealer network to be able to meet those contractual obligations. i doubt they will ever post the contract details for competitive reasons but since SMS basically has the US - i assume those commitments are pretty sizeable.
"I wasn't sure exactly when the Michiana dealer would be begininning his business. So about 6 weeks before he actually did I asked Shawn if I could place a few 12 packs in stores in my area free of charge as sort of a pre marketing activity in my area thinking it would also help generate some interest for the Michiana dealer when he did start. Below is Shawn's reply to me (so I never did place any but gave them out to friends and co workers as samples instead).
"I cannot have you placing in store violates my agreement with SMS "
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