How We Got Paid
We deal with many suppliers from many different industries. Over the years we have added many products to our product list as our buyers asked us to source for a variety of products on their behalf.
Different industries have different pay scales.
While some companies pay us at 2% of the FOB price and they think that it is a fair figure, other companies in different industries might say that it is too much . It depends a lot on the type of industry and how big their profit margin is.
For the record,we do have a few companies which pay us 3% on a regular basis or up to USD$100/mt depend on products they sell.
Our Consulting Fee
are usually made up of a certain fixed percentage of the invoice value (we prefer to base it on the FOB price, where possible). As long as it is competitive and along industry standards, we usually accept whatever percentage our suppliers are comfortable to share with us.
Keep in mind that we usually have other suppliers in our database who are supplying nearly the same products as your company’s. From them we usually have a rough idea of how much we can expect to be paid based on industry standards. We rarely negotiate for a higher figure although some suppliers from the same industry do offer us higher rates.
For those who offer us less they must have their own reasons – higher costs, etc. We’d rather get a fair figure but the supplier really looks after our buyers. After all we are not looking at just one deal – we are looking at multiple deals with multiple buyers from our buyer database with repeat orders coming in later. That is where the money is.
Of course naturally we are more inclined to recommend those who give us and our buyers better rates and better service. But from our experience so far, we prefer the middle ground. We can afford to take this stand as we do have choices when it comes to choosing our suppliers.