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What do you think is better, being a broker or an agent?
Post 1 of 71
Xeron
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Along the line of trade, you will always pop into one of these or you wish to become on.
Each on them has an advantage and a disadvantage.
To sum up, briefly what each is:

Broker: Doesn't have physical stock of products, usually uses customer's money to place an order with their supplier. Shipping time is usually longer then buying directly. But broker's profits are higher then an agent's.

Agent: Doesn't carry any physical stock. Doesn't need to discuss much with customer, just need to direct to supplier, and contact supplier about this customer. You don't have to accept any large sums in the transaction to your ****. Warranty's or shipping is not any of your part. Profits are worked on a percentage, and usual profit is 3-5$ a unit.

Everyone can add what they want to the definition, I just briefly brain stormed a few things.

I would like this to go by with a vote, place your vote in, what you think is a better position.


I say Broker.
16 Aug 2006 18:26
Post 2 of 71

Dear Xeron:

First, let us welcome you to our forum. It is so good to see you back.

This is my personal opinion and experience. An agent is more of a representative of the principal, and has a relationship with the supplier contractually or informally. Agents are like the ambassadors of the Principals, and they do cater for other matters beside simply selling their products. Matters like After Sales Service - warranty service and repair of equipment which broke down. Some agents also do the Promotion, the marketing and sales of their Principal's products, and to some the Distribution, appointing sub-distributors.

Money - there are several arrangements and types of agreements between Agents and Principals. Agents may work on commission basis, being paid by the Principal as a percentage from the value of the sales price of the merchandise. Or the agent sells the product at a mark-up price, which is usually at around the market price. But if there is no price advantage to the agent, then the agent may not survive. The Principal is obliged to provide price incentives to the agent for the products. 

Broker is non-contractual, non commitment to the Principal. In other words, a broker can deal with any brand or maker of the product without any obligation.

Agency - Exclusive.



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16 Aug 2006 19:22
Post 3 of 71
Xeron
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Thank you Street Smart for your welcome, and great summarize of your knowledge on an agent base. I learned a few things from your defining.
17 Aug 2006 18:56
Post 4 of 71
Xeron
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Anyone else, please post your opionions.
20 Aug 2006 10:53
Post 5 of 71
Replying to [Xeron]:both have its pros & cons but ultimately its better to b an agent bcos a broker belongs to no one(niether buyer nor seller) so every one tries to avoid him.but if u say that i m the agent or representatiive of xyz company in this country the customer will prefer to rely more on u than a broker. u can say that a broker may earn a bit more than an agent per deal but in the long run it is the agent who will grab the market.
21 Aug 2006 19:42
Post 6 of 71
zurafurniture
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Replying to [Xeron]:
hi I`m so yeang but I know everything if u have other more questions u can sey me and I will answer u ok becouse this make me happy to answer questions I`m 19 age [em3] and I dont need Broker or agent for my bussines
22 Aug 2006 03:35
Post 7 of 71
zurafurniture
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Replying to [Xeron]:
I dont agree this terms
22 Aug 2006 03:37
Post 8 of 71
zurafurniture
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Replying to [Xeron]:
I dont agree that terms becouse it need money and why pay money if u can make same work for free>? [em3] realy sey I dont like pay money whan I can make it
22 Aug 2006 03:42
Post 9 of 71
Shaheen Khan
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Replying to [Xeron]:

Hello, Mr. Xeron. In my openion it's better to be Agent. As to be Agent priority can be set up like ultimate buyer/retailer.As doing this need to step & enter in every process of Import & Export of any goods.Also I think in this way much more responsibility comes in business.
22 Aug 2006 05:11
Post 10 of 71
zurafurniture
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Replying to [Xeron]:
[em3] if u think that better that was agent or broker in destination u can search in alibaba
22 Aug 2006 05:34
Post 11 of 71
Replying to [Xeron]: I think that is better to be a Agent, you can use the logo, merchandizing, format, catalogue, etc from de principal. in additional, if you get some big deal with some of your customer, you can share with the principal some financial issues that you need to goal the deal.
22 Aug 2006 06:08
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