Handling grey areas in the Asian market

About 4 years ago in one of our regional offices in South East Asia, the office staff mentioned that the water supply for the water cooler we were getting (this was recommended by another staff) was over priced by 1.5 times and the other guy was getting a good commission every time we ordered water.

So we went ahead with this new guy’s suggestion and got a better deal.

A year later, we realized this new guy’s recommendation was still 50% higher than the market price. And this new guy was also getting commission every time we bought water.

What do you do in a scenario like this where there are grey areas all about?

What if instead of getting a commission, the purchasing manager of your client requests for an upfront of USD10,000 ?

In South East Asian companies these practices are not uncommon and this is how we deal practically with our clients.

1. Choose your partners/clients wisely

No matter how financially sexy your client is , just be prepared to walk away from a deal if that person doesn’t smell right.

Our clients have had partnerships with huge media conglomerates to only fizzle after 2 years. Your partner has to get along with you emotionally and in terms of maturity (personal and business).

2. Maintain professionalism at all times

It is possible to establish a good working relationship and not party with your client.

3. Structure rewards

The truth is people are motivated by money where there is little relationship.

Structure rewards for your clients such that it can considered as legitimate commission or an additional top up of services if they employ your company.

The issue with dishing out money to get a deal settled is that this becomes a black hole where the asking might not stop.

4. Build a real solid, wide network

This is really important. In as much, maintain cordial relationships with people whether they are of relevance to your business or not.

You need acquaintances to ask about your partner’s credibility, or when you are exploring new markets and even to help with resolving bureaucracy issues.

If you are interested, we didn’t fire the 2 staff who sold us that over priced water. We’ve come to accept things like these as inevitable.

This was something we could afford and we just viewed it as a silent contribution to their livelihoods.

About Us

Curt & Co. is a business consulting company focused on the South East Asian region.

We complement our clients through extensive market research and due diligence, providing thorough, feasible and financially efficient growth methods for our clients in the region.

We provide 3 main pillars of services including

· Overseas Business Expansion Consulting

· Marketing

· Business Operations Outsource

Clients have the advantage in ​accessing our network in our help whether to meet partners, set terms for franchisees or licensees or negotiate with direct clients in closing a deal.

Our offices are located in Singapore, Indonesia, Vietnam and Philippines.

Find out more on us : www.Curtconsult.com

Contact Us : marcus@curtconsult.com