A fixed fee suits a defined project, such as finding and vetting suppliers for one product. A sourcing agent retainer suits continuing work, such as follow-up and inspection across many orders over months. The right choice depends on how predictable your workload is.
We give no figures for either. What matters here is the structure and what each one pays you for.
How a fixed fee works
- The agent and you agree a scope: what will be done, by whom and by when.
- One fee covers that scope. It does not rise if the order is larger.
- Costs such as lab tests and third-party inspection are passed on at cost, with receipts.
- The work ends at a defined point, such as a shortlist, a signed-off sample or a loaded container.
The strength of a fixed fee is that the agent has no reason to push a larger order. The risk is a scope drawn too narrowly, so that every extra step becomes an extra charge. Ask what counts as a change of scope before you sign.
How a retainer works
- A recurring fee reserves the agent's time for a period.
- The scope is a set of regular tasks, such as supplier follow-up, sample checks and loading supervision.
- The agreement runs for a set period and can be reviewed or ended with notice.
- Unused time may or may not carry forward, so ask.
A retainer helps when you buy often, since you do not renegotiate each time and the agent learns your standards. The risk is paying for time you do not use. Insist on a report that shows what was done each period.
A simple rule for choosing
- One product, one search, first order: choose a fixed fee.
- Several orders a year from the same group of suppliers: consider a retainer.
- Unsure whether you will continue: start with a fixed-fee project and move to a retainer once the first order lands well.
- Large changing workload with many sites: ask for a retainer with a clear list of what each visit or check includes.
What to write down either way
- The scope, including what is excluded.
- What is passed on at cost and how receipts will be shared.
- The payment schedule and what happens if the work is cancelled.
- The ownership of reports, which should be yours.
- A statement that the agent takes no payment from factories.
For the clauses around these, see what a sourcing agent contract should include and our overview of fee models in sourcing agent fees in India.
A worked scenario
An importer wants one product sourced from India for the first time. A fixed-fee project covers the search, audits, sample checks and the first loading. Six months later the importer has three products on the go and orders every month. A retainer now makes sense, since the same checks recur and the agent already knows the suppliers and the standards.
The change in structure follows the change in workload. It is not a sign the first arrangement failed.
Questions to ask about either
- What is the fee for if I place no order at all?
- What can I cancel, and what is lost if I do?
- How will you report what you did, and how often?
- Does the fee change if a supplier fails and we need a second one?
Hybrid arrangements
Some engagements mix both. A fixed fee covers the first search, and a smaller recurring arrangement covers follow-up once orders begin. This works if the two scopes are written separately, so that you can end the second without disturbing the first. Check that nothing in the retainer overlaps with work you already paid for.
How we work
We quote one written fee per engagement, agreed in advance, and we do not take anything from factories. Whether it is a one-off project or ongoing work, the scope goes in writing first. Book a free sourcing review and we will tell you which structure fits your plan.