Decrease in costs
If the distribution tasks outsource them with experts, you eliminate the fixed costs caused by your own sales force. In exchange for their activity, the Commercial Agents receive a specific commission of negotiated sales supplemented in some cases by the service of managing the payments of the clients.
All Commercial Agents assume their own costs, such as personnel, travel expenses, etc.
There is no standard or custom percentage of commission. The commission rate must be negotiated individually. The percentage of commission depends on several factors such as the frequency with which the clients are visited, the competitive situation, the services required, or the market position of the company represented.
Another advantage of working with Agents or Commercial Agencies is the wide range and variety of services that the Agents offer both to companies and customers. In addition to the main activity, brokering goods, agents often offer a package of additional services such as:
- Provide information and advice
- Technical and development advice
- Storage of samples
- Representation at fairs and exhibitions
- Implementation and follow-up of special promotions
- Own recycling
- Organization and execution of logistics services
- Claim management and more
These services are usually paid separately. Along with the increasing challenges, the image of the Commercial Agents has changed. Commercial Agents have gone from being sellers, to full-service companies. Nowadays, a modern office equipped with all kinds of communication devices and qualified personnel is taken for granted.