A China sourcing partner is paid in one of two ways: a commission on an order placed with a supplier, or a direct price that already contains the partner’s work. They are not better and worse versions of the same thing; they fit different situations. FBM Sourcing uses both, always as a pair: for products we source for you, a direct price with our work inside it and no commission on top; for suppliers you nominate, a 5% commission.
This article is written for developers, general contractors, builders, commercial project owners, interior design and construction companies and FF&E solution providers who are deciding how to buy a project package from China.
What Are the Two Structures?
A commission on an order placed with a supplier
The client already has the supplier, or has chosen and priced the product, and the partner manages the order for a stated percentage. What the partner is paid for is the management of that order; the supplier relationship, and usually the supplier’s own warranty, stays with the client.
A direct price
The partner finds and compares the factories, quotes each item as one price, and stands behind the result. The partner’s work sits inside that price rather than on top of it, and the partner is the counterparty for the goods.
A fuller treatment of who you are contracting with in each case is in manufacturer, trading company or sourcing agent.
Choosing how to buy a project package from China?
FBM Sourcing works with developers, general contractors, builders, commercial project owners and FF&E solution providers. Send the BOQ, drawings or product list and our team will review it and get back to you.
What Does Each Structure Mean for Your Project?
| Question | Commission on an order | Direct price |
|---|---|---|
| Who finds the supplier? | You do | The sourcing partner does |
| What do you compare? | Your supplier’s price, plus the stated commission | The partner’s price per item, against what you pay now for the same specification |
| Who stands behind the goods? | The supplier, under its own warranty | The sourcing partner |
| Contact with the factory | The relationship is yours | Runs through the partner |
The practical question is not which structure is cheaper in the abstract, but whether you already have a supplier you trust for a given item. If you do, a commission on that order is the natural fit. If you do not, the work of finding the line that makes the product, comparing several and standing behind the result is what you are buying, and a direct price is how it is priced. How a sourcing partner compares with a company that sells a full range is covered in sourcing agent vs one-stop supplier.
How Does FBM Sourcing Charge?
All quotations, invoices and shipping documents are issued by FBM Sourcing — you deal with us, and we carry the responsibility. For suppliers you nominate, we charge a 5% commission; for products we source for you, we quote a direct price.
- Products we source for you — a direct price. Our work is inside that price and there is no commission on top: sourcing, drawings, quality control, consolidation, loading and after-sales are included, and sea freight is quoted to you before shipment.
- Suppliers you nominate — a 5% commission. This covers suppliers you bring to the project. We manage the order for a 5% commission; after-sales is not included, because claims fall under the supplier’s own warranty, but we help you communicate with the supplier.
FBM Sourcing holds no inventory and has no product range of its own. The mode for each item is set by who found the supplier, and you always know which applies before an order is placed.
Why Isn’t the Direct Price Simply a Supplier’s Quote Plus 5%?
Because the 5% is the price of managing an order at a supplier you nominated, and that is what we charge for it. Finding the line that actually makes your product, comparing several, and standing behind the result is a different job, priced inside the product, so we do not quote a margin figure. Judge the direct price against what you pay now for the same specification: we share examples of previous quotations to show the price range.
Which Structure Fits Which Situation?
| Situation | Structure that fits | Why |
|---|---|---|
| Multi-category package built to drawings or a BOQ, factories not yet chosen | Direct price | The work is finding and comparing the lines that make each category, and standing behind the result |
| A supplier you already use for a category | Commission on the order | The supplier is already chosen; what you need is the order managed |
| A product you found and priced yourself at a showroom or market | Commission on the order | You have seen the supplier’s price, so the order is managed for a stated rate |
| A project with some of each | Both, item by item | Each item follows who found its supplier |
For what a sourcing partner’s work covers in more detail, see how much a China sourcing agent costs.
Choosing how to buy a project package from China?
FBM Sourcing works with developers, general contractors, builders, commercial project owners and FF&E solution providers. Send the BOQ, drawings or product list and our team will review it and get back to you.
Frequently Asked Questions
How do China sourcing agents charge?
In one of two ways: a commission on an order placed with a supplier the client already has, or a direct price that contains the partner’s work. FBM Sourcing uses both as a pair: a direct price for products we source for you, and a 5% commission for suppliers you nominate.
How does FBM Sourcing charge?
All quotations, invoices and shipping documents are issued by FBM Sourcing — you deal with us, and we carry the responsibility. For suppliers you nominate, we charge a 5% commission; for products we source for you, we quote a direct price. Our work is inside that price, and sea freight is quoted to you before shipment.
Can part of a project be on commission and part on a direct price?
Yes. The mode is set item by item by who found the supplier, and you know which applies to each item before it is ordered.
Can we contact the factories directly?
It depends on who found them. Suppliers you nominated yourself, of course: they are your relationships, and we manage the order. Factories we source for you, no: all communication runs through us, and we contract with the factory in our own name.
Does FBM Sourcing hold stock or sell its own product range?
No. FBM Sourcing holds no inventory and has no product range of its own. For products we source, we find and compare the factories that make each item and quote a direct price; for suppliers you nominate, we manage the order for a 5% commission.
About FBM Sourcing
FBM Sourcing manages the entire China procurement package for overseas construction projects. Since 2014 we have worked with developers, general contractors, builders, commercial project owners, interior design and construction companies and FF&E solution providers across more than 20 countries and over 1,000 containers, as their sourcing partner in China — from the schedule or BOQ through factory selection, sampling, inspection by our own team before shipment, consolidation and shipping. All quotations, invoices and shipping documents are issued by FBM Sourcing, and sea freight is quoted to you before shipment. If you have a project package to price, start at China building materials and FF&E procurement.
