commission for the export & import brokers
Post 1 of 7
I just opened my own export & Import brokerage company in US. My client is a raw cotton buyer from Turkey, (150 tons / month) and I have found an Indian supplier for them.
The question is now how much i should charge the Indian firm for finding a reliable monthly buyer?
And the second question is how much I should charge my client for finding a supplier from India.?
I would appreciate any kind of input. Is there any standard in between the agents or how does this commission thing work?
Thanks guys.
The question is now how much i should charge the Indian firm for finding a reliable monthly buyer?
And the second question is how much I should charge my client for finding a supplier from India.?
I would appreciate any kind of input. Is there any standard in between the agents or how does this commission thing work?
Thanks guys.
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25 Oct 2007 11:45
Post 2 of 7
Replying to [crazy Turk]:
Hi,
Im a broker as well.
The first thing you have to do is ascertain that your commission fee is competitive. The brokerage fee from industry to industry is different, but make sure that youre not charging so much in comparison to your competition.
There are certain laws regarding rules of commission for brokers in certain trades, and this depends on your country. You should do adequate research about this.
Besides that your paying scheme is really up to you. I would suggest being flexible and consider how much your client would be making after acquiring the supplier.
I really do think that before getting that supplier on his behalf you should have agreed on a fee beforehand. Also, what should be considered is, what kind of broker are you? Will you negotiate and buy on his behalf as well, or is this just a case of finders fee where you find the supplier and give the contact details to him?
The difference between the two is significant, as there is more cost to the first service rather than the second one.
Just keep in mind, that it does no good to be cutthroat in charging a brokers fee. When your buyers are happy and make enough to build and expand that means better business for you too.
Hi,
Im a broker as well.
The first thing you have to do is ascertain that your commission fee is competitive. The brokerage fee from industry to industry is different, but make sure that youre not charging so much in comparison to your competition.
There are certain laws regarding rules of commission for brokers in certain trades, and this depends on your country. You should do adequate research about this.
Besides that your paying scheme is really up to you. I would suggest being flexible and consider how much your client would be making after acquiring the supplier.
I really do think that before getting that supplier on his behalf you should have agreed on a fee beforehand. Also, what should be considered is, what kind of broker are you? Will you negotiate and buy on his behalf as well, or is this just a case of finders fee where you find the supplier and give the contact details to him?
The difference between the two is significant, as there is more cost to the first service rather than the second one.
Just keep in mind, that it does no good to be cutthroat in charging a brokers fee. When your buyers are happy and make enough to build and expand that means better business for you too.
25 Oct 2007 20:01
Post 3 of 7
Replying to [crazy Turk]:
Different industries may have different commission rates I think. You can negotiate with your buyer or supplier for further discussion. Another important issue is that you should not ask for commission from two sides at the same time. That's to say, a good agent should work for only one side/party at one time, representing & protecting the interests of either the buyer or the seller. We are also a purchasing office for foreign companies in China. We never charge two sides every order, we either represents the buyer or represents the seller when acting as a broker. Take care!![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
Different industries may have different commission rates I think. You can negotiate with your buyer or supplier for further discussion. Another important issue is that you should not ask for commission from two sides at the same time. That's to say, a good agent should work for only one side/party at one time, representing & protecting the interests of either the buyer or the seller. We are also a purchasing office for foreign companies in China. We never charge two sides every order, we either represents the buyer or represents the seller when acting as a broker. Take care!
26 Oct 2007 01:52
Post 4 of 7
Replying to [Mrs. Kahan]: Thanks Mrs. Kahan for your answer. I do not buy anything. I just hook up my client with the supplier. Obviously it will be on monthly basis. Every month they will buy the product after we sign a contract.
So actually after we close the deal the buyer will see the contact information and the actual price of the good. So I have to let them know how much commission they will give to me.
Do you charge the both supplier or the buyer or you just charge the party you represent?
Thanks again.
So actually after we close the deal the buyer will see the contact information and the actual price of the good. So I have to let them know how much commission they will give to me.
Do you charge the both supplier or the buyer or you just charge the party you represent?
Thanks again.
26 Oct 2007 10:19
Post 5 of 7
Replying to [Business in China]: Thanks buddy, I will keep that in my mind. take care.
26 Oct 2007 10:22
Post 6 of 7
Replying to [crazy Turk]:
i am a trading company. sometimes i act as a broker only. i have the same questions to be settled. thanks the question and providers, you give the new comer a big help.
i am a trading company. sometimes i act as a broker only. i have the same questions to be settled. thanks the question and providers, you give the new comer a big help.
27 Oct 2007 23:35
Post 7 of 7
Replying to [crazy Turk]:I have the same problem with you. Thanks Business in china. I will take your advices.![[em17]](http://img.alibaba.com/images/eng/style/icon/emoticons_shake_hands.gif)
28 Oct 2007 06:59
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