Hello;
I have a question reguarding trade agents commission and pricing

What is the proper way of including are commission when submiting a price quote to a supplier or buyer

How could we include this so that the buyer and supplier don't contact each other and therefore loosing are contacts

Thank you any sugestion appreciated .

Hello,

If your an agent you have to be really careful with your action, so you won't give away your supplier.

The proper way of adding your own commision to the supplier cost is bby just adding in your commision to your. Send your the buyer all the products your supplier has for sale and end an extra 15-20$ to that amount.

About your buyer and the supplier communicated is the hardest part to think through.
Best thing for you to do,..don't tell the buyer your the agent,..let him think your a supplier.
You have to then contact your supplier and know as much as you can, so you can easily answer your buyers questions.

From there,..your buyer should have the idea that you are a supplier,..when he places the order, you may contact your supplier and send from the supplier directly to the buyer,..but that includes the risk of being uncovered.
Most recommened is to sent the products to you,..then send them to your buyer.

Best Regards,
Martin

Replying to [claude05]:


The commission is to be paid to the agent for introduceing,negotiateing,quality control,physical verifiation of goods,

He is responsible upto end of the story.

This commission should be discussed and fixed in the initial stage itself.It can be added in the invocie or paid separately., deponds on the situation

[Moderator]   Great answer and to the point thanks Curdice.

Replying to [claude05]:The commission is to be paid to the agent for introduceing,negotiateing,quality control,physical verifiation of goods,
He is responsible upto end of the story.
This commission should be discussed and fixed in the initial stage itself.It can be added in the invocie or paid separately., deponds on the situation

Quoting from [claude05]:


Hello;

I have a question reguarding trade agents commission and pricing


What is the proper way of including are commission when submiting a price quote to a supplier or buyer


How could we include this so that the buyer and supplier don't contact each other and therefore loosing are contacts


Thank you any sugestion appreciated .

claude05, acting as an agent for supplier or buyer is totally different.  If you are helping to sell products you are much the same as a manufacturer's representative. Its is either better to work for them or contract to them.  You could work as a broker for the supplier and advertise the products yourself.  On the other hand if you are a buying agent the best thing to due is to sign a contract with the buyer for commision to be paid directly to you pursuant to and included in the terms of the execution of first payment of L/C including upon any advance T/T payment. 

I would however never represent yourself as the supplier ie manufacturer if you truely are not.  Many eventually cut their own throats when they set on a course to decieve a buyer by saying they are the manufacturer and then buyer realizes that supplier could not be the manufacturer due to import doucments and country of origin certificates. 

best regards,

Ranger

Replying to [claude05]:you can sign a contract with supplier whihc will be endorced by the bank also before open the details of buyer, this is safest way possible to safe your commession.

Replying to [curdrice]:Yes,you are right

Replying to [claude05]:

Just read Rangers answer and that will be the only way to go.

Mike

Replying to [Ranger]:

What if the buyer wants to do more than one order and the first order is actually a small order. This will allow the buyers to know who the sellers are and cut you out on the 2nd bigger order. How can we prevent this?

Quoting from [NyTrader]:


Replying to [Ranger]:


What if the buyer wants to do more than one order and the first order is actually a small order. This will allow the buyers to know who the sellers are and cut you out on the 2nd bigger order. How can we prevent this?

NyTrader, IM an owner of a company that connects buyers to sellers.  You have to have a standard for which you will involve yourself in any business deal.  You have to set a minimum for your service.  With our service we have a minimum of 100K, if a client comes to us and wants to do a small deal ie.. 20k  the fee would be 3500.00USD.   The price is based on the fact that we find and or use our business contacts to supply the products to them.  However, we go one step further in guaranteeing that the deal will be done and to the exact specifications of the buyer.  Product liability insurance is something that draws alot of business are way as once the contract is signed between the buyer and my agency the fee is paid upon execution of the payment to the seller.  Even if the buyer backs out of the deal they have signed a contract with us ensuring that we will recieve the payment within 180 days.  To this date and for over 20 years we have only had one customer try to renig on the fee.  If you are an agent that has resources and contacts with suppliers you have would they not be honerable in informing you that a client was doing an end run.  If they didn't I would view them as less than a good supplier.

The other thing about my business is that once a buyer sources through are company the commisions go down based on frequency and the amounts of the deals.  However, they're investment for products up to 25M is covered under our Product Liability Insurance.

If your looking to do small deals and act as an agent I see no future in it as well as no profit.  You would be better off investing in some warehouse space and becoming a trading company in a defined market.  Even in acting as a broker and you source products from overseas the products must be delivered to you and then reshipped to your buyer if you do not want the buyer to know the supplier.  Which can be hazardous if they are not name brand which already come with a warranty.  If you broker deals and are not covered by product liability insurance you leave yourself open to lawsuits for por products and workmanship.  Ultimatley there must be someone responsible for making good on bad products and if that happens to be you as a broker how will you cover your assets?  Its not like you can send indiviual products back to your supplier from overseas, the shipping would be outrageous.

So set a minimum and provide a service that will keep a company coming back to you to source more products.  They afterall are paying you to find what they do not have the manpower, time, or resources to do on their own and ultimatley for small business the fact that so many get seperated from their investments. 

If you or anyone has any further questions don't hesitate to ask me or other members of the forum.

Best regards,

Ranger

Replying to [Ranger]:Ranger you are the man..man i wish you were my mentor