Indirect local sales channels are most suited to selling U.S. goods and services in Nepal. Pricing structures in Nepal are erratic. Imported goods are priced higher than locally produced goods. Imported goods' prices reflect transportation costs and other mark-ups. Indian manufactured goods, when available, are cheaper than imports from more distant countries.
Specific responsibilities depend on the terms of the contract.
The agent normally works on a commission ranging between 5 and 15 percent of the sales price, depending upon the nature of the product or service offered. The distributor not only sells on a commission basis, but also buys and keeps goods in stock for resale, does local marketing, and handles after-sales product servicing as required. The distributor's commission in Nepal normally ranges between 15 to 30 percent, again depending upon the nature of the product. Hiring a Commission Agent to assist in winning a contract can be effective when selling development-oriented goods such as construction services or heavy equipment and for selling to government departments and competing in an international tender exercise. Use of a local distributor is more effective when selling durable and non-durable consumer goods.