Rank Xerox CIS and the Moscow-based retailer and copy bureau Fan, have signed a distribution agreement under which Fan becomes what the two partners call the sole retail distributor of Xerox in Moscow. This means that instead of dealing with its Moscow-based retailers directly, Rank Xerox will sell to them through Fan. Rank Xerox is, however, reserving the right to influence Fan’s pricing and service policy. Rank Xerox is to undertake warranty service, technical and information support on all Xerox equipment sold by its distributor. A service hot-line will also be run by Rank Xerox. This agreement covers only Xerox commodity products: personal copiers, printers, facsimile and multifunctional machines. The company decided to take this path after analyzing its sales in 1996, Rank Xerox noted that a significant proportion of its commodity products were sold through retail outlets. Xerox plans to apply the same model in other major Russian cities. An analogous agreement is being negotiated in St Petersburg.
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