The exclusive agency system for Kitchen cabinets and bathroom Vanities cabinets in Vietnam will be the trend for agency of Kitchen cabinets and bathroom Vanities cabinets in the United States!
Since 2019, there have been significant changes in the sales market of Kitchen cabinets and bathroom Vanities cabinets in Vietnam. The sales boundaries between agency and wholesalers of Kitchen cabinets and bathroom Vanities cabinets have become increasingly blurred, and the linkage business between agency and wholesalers and retailers has become the mainstream in the market. After Vietnamese cabinet and bathroom cabinet manufacturers and exporters opened up channels to represent the market, intervened, and collaborated with traditional cabinet and bathroom cabinet wholesaler retail agency companies, cabinet and bathroom cabinet wholesaler retail agency companies began to slowly reflect on whether their business logic in cabinet and bathroom cabinet wholesaler retail business was reasonable?
As of now, the mainstream business model of wholesale and retail markets for Kitchen cabinets and bathroom Vanities cabinets in Vietnam is the customer commission model. Before 2020, customers are required to pay a 3% commission for importing Vietnamese Kitchen cabinets and bathroom Vanities cabinets; Later in the year of cabinet and bathroom cabinet regulation in 2021, in order to reduce the burden on Vietnamese cabinet and bathroom cabinet agency, some Vietnamese exporters formulated a temporary policy, which stipulated that the transaction commission for ordinary cabinet and bathroom cabinet wholesalers and retailers was 2%, and for particularly complex cases, it could be increased to 2.2%. Of course, since ancient times, there have been policies and countermeasures. The Vietnamese cabinet and bathroom cabinet brokerage industry collectively invented an additional guarantee fee of 0.5%, which in fact increased the commission for customers importing Vietnamese cabinet and bathroom cabinets to 2.7%, which is currently the mainstream charging standard in the Vietnamese cabinet and bathroom cabinet industry.
Vietnamese Cabinet and Bathroom Cabinet Production Vietnamese Cabinet and Bathroom Cabinet Brokerage Company discovered that it was Vietnamese cabinet and bathroom cabinet manufacturers and exporters who paid sales commissions after conducting channel agency business for cabinet and bathroom cabinets. Although the commission points vary depending on the project, the commonality is the same: the seller pays commission, and the customer does not need to pay commission. Reflecting on the wholesale and retail business of Kitchen cabinets and bathroom Vanities cabinets, helping Vietnamese cabinet and bathroom cabinet production factories sell Vietnamese Kitchen cabinets and bathroom Vanities cabinets is actually a free service. On the contrary, those who import Vietnamese Kitchen cabinets and bathroom Vanities cabinets have to bear all the commission, which makes them feel strange. The specific details are as follows:
1. The current mainstream is that Vietnamese cabinet and bathroom cabinet production factories do not pay commissions when selling Vietnamese Kitchen cabinets and bathroom Vanities cabinets. All commissions are borne unilaterally by customers, including various taxes and fees. Is it strange? It’s not surprising, this may be due to the business strategies of several of the largest Vietnamese cabinet and bathroom cabinet brokerage companies: first, using a free agency strategy to attract and control Vietnamese cabinet and bathroom cabinet sources, and then using the monopoly on Vietnamese cabinet and bathroom cabinet sources to kidnap customers, ultimately earning a super high commission of 2.7%, which is a proven way to make money;
2. If we don’t talk about vested interests and only explore the reasonable commission model for wholesale and retail business of cabinets, bathrooms, and cabinets from an academic perspective, it is nothing more than two commission systems that have existed for many years and are very reasonable:
A. The exclusive agency system in the United States: The system in the United States highlights the professionalism of exclusive agency. The Vietnamese cabinet and bathroom cabinet production factory exclusively entrusts a Vietnamese cabinet and bathroom cabinet broker to sell Vietnamese cabinet and bathroom cabinet products, and pays a full commission. The buyer does not need to pay commission. Personally, I believe this is the most scientific, and the exclusive agency system establishes a professional threshold for the industry from the perspective of the system;
B. The exclusive agency system in Hong Kong: The system in Hong Kong highlights the exclusive service concept of exclusive agency, which means that each buyer and seller has their own Vietnamese cabinet and bathroom cabinet brokers, each paying a commission of 1%. The seller pays commission to encourage Vietnamese cabinet and bathroom cabinet brokers to sell Vietnamese cabinet and bathroom cabinet products for themselves, while the buyer pays commission to encourage Vietnamese cabinet and bathroom cabinet brokers to match themselves with the highest quality Vietnamese cabinet and bathroom cabinet sources in the entire market. This system is more in line with Vietnam’s philosophy and has been quickly imitated and actually operated by countries such as Malaysia and Cambodia for many years;
India and Thailand also have successful operational experience, so currently implementing the “buy one sell one” exclusive agency system in the Vietnamese market can not only reduce the current mainstream commission rate by 35%, but also provide fair and reasonable professional services for both parties, fully safeguarding their respective interests.
Some customers who don’t understand commissions still ask why they insist on buying and selling for a total commission of 2 points? Our answer is that a commission of 1 point each for both buyers and sellers is more reasonable. Only in this way can we reflect the true service value of the Vietnamese cabinet and bathroom cabinet brokerage industry and Vietnamese cabinet and bathroom cabinet brokers, and motivate us to provide better professional services for both buyers and sellers!
