A retainer is a regular fee, usually monthly, for an agreed amount of ongoing work. A per-container fee is charged for each shipment the agent handles. Both are fixed in writing in advance, and neither depends on the price you pay the factory.
Which suits you depends on how often you ship, how similar the shipments are, and how much work happens between them.
How a retainer works
Under a retainer, you pay a set fee for a defined scope over a period. That scope might cover supplier management, regular audits, market reports, and a set number of inspections and loadings. Work outside the scope is quoted separately.
A retainer suits buyers with steady, varied needs. Examples are an importer with several products and suppliers, or one who wants regular market news and supplier visits between shipments. It gives the agent a reason to plan ahead, and it gives you a predictable cost.
How a per-container fee works
Under a per-container fee, you pay for each shipment handled. The fee normally covers a defined set of tasks for that shipment, such as production follow-up, pre-shipment inspection, loading supervision and the document check.
It suits buyers who ship the same product from the same approved supplier on a regular basis. The cost rises and falls with your activity, which helps if your volumes are seasonal.
The weakness is that work between shipments may fall outside the fee. Supplier visits, spec changes, new-product searches and claims may then be charged separately. Check what is covered before you choose this model.
Points to check in either model
- The scope should list exactly which tasks are included, so you know what costs extra.
- The agreement should say what counts as a container, or how part-loads and consolidated loads are charged.
- Third-party costs, such as lab tests and independent inspection, should be listed as billed at cost with receipts.
- The fee should be the same whatever price you pay the factory, so the agent has no interest in a higher price.
- There should be a clear notice period, so you can change model or stop if your needs change.
Combining models
Many buyers use a mix. A fixed fee covers the one-off work of finding and approving a supplier. A per-container fee or a retainer then covers the repeat orders. The key is that every part is agreed in writing before work starts.
These are not the only fee structures. Our articles on how sourcing agents in India get paid and fixed fee versus a percentage of order value compare the wider options.
Next step
We quote per engagement, with one written fee agreed in advance. To find the structure that suits your orders, book a free sourcing review.