Do you need a representative or purchasing agent in Russia? Should it be your employee or agent from Russia? What works best?

Each buyer from Europe and Asia answers these questions himself. And I respect that. Everyone makes a choice based on their reasons and objectives. 

I want to share with you the story of success and failure in the purchase of oak boards, a trading company from Europe.

2016-2017 - the company is trying to establish business relations with local oak Board manufacturers, using its procurement representatives. More than five times during this time, their representatives flew to Russia, but could not convince local producers to cooperate.

July 2017-the company approached me as an agent from Russia. Within 3 months, we sent 12 Board machines. For this purpose it was necessary to alter specifications under the Russian market, to correct conditions of payments and laying, to build personal relations with each of them. These are the features of the Russian mentality. 

2018-may 2019-constant shipments of 8-12 cars per month. Established partners fulfill their obligations. There are small failures in quality, but the following machines compensate for all this. As they say – working moments.

June 2019-ended our partnership, according to the contract.

August 2019-due to the General downturn in the lumber market, the company decided to revise the procurement policy, complicating the requirements for the layout of the Board, the ratio of sizes and grades, and lowering the price by 20-25 euros from 1 m3 of Board. Fines for incorrect packaging were introduced. 

September 2019 – sent 3 cars.

October 2019-1 car sent.

November 2019 – attempts to bring the conditions back on purchases, has not yet led to success. Competitors have already been able to take their niche. 

Where were the mistakes made? Can they be fixed? How fast?