Promo Marketing Magazine has published a new article with helpful hints for distributors seeking to protect themselves from counterfeit products.
“If you source counterfeits,” the magazine warns, you are just as responsible for violating the patent, and your client may end up with nothing if the product is seized and confiscated – plus you’ll be stuck holding the bill.” With this in mind, the article explains a trilogy of ways to avoid this sticky situation.
The first tip, is to only work with a small group of suppliers, which means “you create partnerships built on trust” and are “more inclined to collaborate and address issues head on” when something goes wrong. It also reduces the number of factories you’re receiving products from, meaning you can keep track of both procedures and patents much easier.
The second tip is to “build long-term relationships with your supplier to build accountability, trust and transparency”, with the argument that these strong relationships will protect both your company and your clients. The article adds that “it’s less likely that a supplier will try to sell you a counterfeit product when you both have vested interests in the growth of the relationship.”
The final tip is to ensure you have a standard operating procedure in place for if a suspected counterfeit product is discovered. PMM suggests that this could include verifying the supplier is willing to share market and/or financial data history representing their business; requesting to visit the factory; and requesting documentation that verifies their authorisation to sell the patented product in question. If these refuse any of these requests, alarm bells should sound, and it may will be worth rethinking your partnership with the supplier.
