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Secret to 1% commission

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Submitted by Stone on Fri, 09/20/2013 - 11:43

Any decent trading company or sourcing agent can hardly survive at 1% commission. Put yourself in the sunlight of common sense and you will be aware that they have to make other money sub rosa.

In two ways you’ll be cheated by those agents who offer you 1% commission:

  • They demand money from your suppliers. Of course suppliers will add this money into their prices quoted to you. Generally this hidden commission ranges from 3% to 20% on top of what you already paid them for their service.
  • They increase price covertly. When some suppliers don’t play the game of hidden commission, they record the price higher without you noticing it during a market tour. Supplier quotes you CNY1.00, your agent writes down CNY1.20 on the paper.

The consequences are obvious:

  • They defend your supplier more than they defend you when things go bad, finding excuses for supplier for late shipments, holding back quality issues if ever they actually quality check your goods etc., for they get more money from supplier than from you.
  • You spend way too much money than 1% for their dubious service.
  • You waste time and get frustration.

Now that you know the tricks, don’t be hoaxed.


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