A: Hello, Mr. Kubat. I am glad to meet you here at the fair.
B: Likewise. Take a seat, please. How about a cup of tea?
A: Sure. Thank you. It seems your business is prosperous. There are many customers here.
B: Yes, it's not too bad. Our sales are going up year after year. And we still have a large potential production capacity.
A: Well, what do you think of choosing a commission representative or agent abroad to promote your sales?
B: That's a good idea. So far, we have several agents abroad.
A: We are willing to be your agent in Thailand for hand-held tools. What do you think?
B: That sounds good.
A: Then, what's your usual commission rate for your agents?
B: Usually, we give a commission of 3% to our agents.
A: 3% is too low, I think. You see, we have a lot of work to do in sales promotion such as advertising on radio or TV, printing booklets, leaflets, catalogues and so on. It all costs money. 3% is not enough.
B: Don't worry. We'll allow you a higher commission rate if your sales score a substantial increase.
A: You mean to say…
B: Now, if you sell US$ 2 million worth of hand-held tools annually, we can only allow 3% commission. If the annual turnover exceeds US$ 5 million, you can get 5% commission. What do you think of that?
A: It sounds OK. 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's okay, we would like to sign an agency agreement with you immediately.
B: Think it over. We hope to keep a good business relationship with you.
A: Thank you for your help.