Agency

A: Mr. Allen, we are willing to be your agent in Canada for air conditioners. What’s your opinion?
B: It coincides with our desire.
A: Then, what’s your usual commission rate for your agents?
B: Usually, we give a commission of 6% to our agents.
A: 6% is too low, I think. You see, we have a lot of work to do in promoting the sales, such as advertising on radio or TV, printing booklets, leaflets, catalogues and so on.
B: Don’t worry. We’ll allow you a higher commission rate if your sales score a substantial increase. If you sell 5 million worth of hand-tools annually, we can only allow 6% commission. If the annual turnover exceeds 8 million, you can get 8% commission. What do you think of that?
A: I sounds reasonable. Then how do you pay the commission?
B: We may deduct the commission from the invoice value directly or remit it to you after payment.
A: All right. If it is OK, we would like to sign an agency agreement with you immediately.


A: Thanks for coming. Perhaps you should start by telling us what we are looking for, OK?
B: Yes, what we are looking for mainly is an agent in China to represent us, who can help us with marketing, dealing with any queries from customers, taking customer orders and dealing with any problems.
A: Fine, I see no problem with that. We represent other companies in exactly the same way.
B: Well, I would like to know your market connections, the effectiveness of your sales organization and your technical ability to handle the goods to be marketed.
A: We have more than twenty sales representatives, who are on the road all year around, covering the whole country.
B: Do you have any middlemen or sell direct to the retailers?
A: Through years of effort, we have set up effective channels of distribution and we canvass the retailers directly without any middlemen.
B: To tell you the truth, you’re not the only one who applies for the agent for us in your country. Perhaps you would like to give us some ideas of the terms on which you would be willing to operate as our agent.
A: No problem, We can send you the details in written next week.
B: Very well then. We’ll make our decision and let you know it as soon as possible.

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