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Gentlemen Agreement. What is offered should be paid.
If under circumstances, the deal could not be closed due to minor variations and and not in a position to scale down the price a little more, then it is better to consult the intermediary--when he is expressively conveyed his consent to reduce the price and ready to accept a reduced commission--the ethical aspect is overcome. Anyway considerable reduction even though the intermediary will be ready to bear with will not be considered as it affect further prospects from the intermediary.
IMO: we can. But the commission is always in percentage of the sales. So it will automatically reduced in absolute commission amount so no need to further reduce (percent) commission. Further it all depends upon the agreement in place. If this agreement has a clause to modify the rates & commissions, then we can also modify or change even the (percent) commissions.
No.
It depends upon the mutual agreement between you and the intermediary. You should find an intermediary who is flexible in terms of unpredictability you are expecting with the customer.
The commission depend on the percentage of the Seles , so is not need to reduce .
I will always inform my rock bottom price that i can offer to the intermediary, So my quote to the prospect would be my rock bottom price + intermediary commission + some buffer depending upon the prospect. if the prospect is insisting on a discount, then i will first exhaust it from the buffer, then if the prospect is insisting more, i will stick on to my final price. May be i will discuss the current scenario with the intermediary and get his concurrence about the further discount to the prospect. if he accepts, even then i will try to stick on to my final price. last resort if there is no way out then i might use the intermediary permitted amount as further discount. Anything more cannot be entertained.
Give suggestions or alternative which can often achieve greater benefit for all concerned looking for possible solutions like compensation next time and leaves both parties feeling that they've won
Commission invariably is on realization / sales price for any unit sale by the organization . Some organizations make it very clear in the agreement itself & its an automatic process . But, if its not mentioned in the contract / agreement -then its a ? to be discussed between the organization & the intermediate who is helping as a sales representative to sell the product on ORC .
No not now.
Should have involved and mutually agreed before deciding.
It must not be routine practice but YES you can, because its market of distributor/ intermediary as well so he/she can put in funds to develop it which will ultimately increase his business. Furthermore, discounts are usually offered to volume generating customers doing this you will have loyalty of customer as well which will again result in business growth.
No because Such activities is very harmful to spoil sustained market policies….
There is a difference between work within circle & create a new circle.