Sourcing consulting is a term used to express the role and activity of a consultant who helps you source products from the most relevant manufacturers at the best prices. Middleman sourcing is the process of obtaining products or services through the use of a middleman, or, let’s say, a commissioner.

We are a Turkey sourcing consulting agent dedicated to connecting buyers with the right Turkish manufacturers. We do not make any commission agreements, and we objectively collect price quotes with a reasonable fee.

Please note that we do not manufacture goods (except for flavors and essentials), but we have strong connections with hundreds of high-quality Turkish manufacturers. Although we clearly express this frequently on our web site, we receive numerous WhatsApp messages and emails from individuals and companies seeking product catalogs or price quotes for “our” products.

These emails and messages have come as a surprise to me, as the owner of this sourcing agent.

I am the co-partner of an active 15-year-old manufacturing company in Turkey, and I do know the difficulties of manufacturing. I simply cannot understand the purpose behind these perpetual e-mails and inquiries. Is it possible for a sourcing agent to handle manufacturing for all types of products? Is that so?

Why Sourcing Consulting Is Better Than Middleman Sourcing?
Sourcing Consulting vs Middleman Sourcing

Middleman Sourcing

I don’t quite understand why individuals tend to believe a sourcing agent who claims they can produce nearly anything. Unfortunately, there is no such amazing sourcing agent that manufactures everything.

These types of sourcing agents clearly perform middleman sourcing and are not even close to sourcing consulting because they will offer you only the companies from which they can get commissions.

Obviously, we have brought a different approach to the sourcing consulting sector. We are not afraid to announce the top manufacturing companies in the industry. As experienced sourcing consultants, we understand that every client’s demands are unique, and each request should be reviewed separately based on the client’s actual needs.

The majority of our clients are start-ups, and they prefer smaller factories or workshops capable of producing private-label products. Communicating the specifics to the Turkish manufacturer and receiving accurate pricing quotes is not always straightforward, and we are here to assist our customers in making the best purchasing decision possible. We also help potential purchasers by providing real facts in manually written blog entries.

Cons of Middleman Sourcing

Even though it looks easy and feasible to have a “turn-key” or all-inclusive job, I kindly advise you to consider the following cons of working with sourcing agents that are actually performing middleman sourcing:

  • You are offered companies that are on the sourcing agent’s list, which does not cover the whole sector. Therefore, you will get the impression that there are a very limited number of manufacturers in that sector.
  • You get 20–30% higher prices than its normal price.
  • You pay more for shipping fees.
  • You pay more for the importing fees because the sourcing agent will buy your products from the manufacturing company and resell them to you.
  • The sourcing agent will not allow you to contact the actual manufacturers since this is a typical middleman sourcing process.

Pros of Sourcing Consulting

What if the sourcing agent had provided you with the correct ex-works rates in the first place? What if you could further negotiate prices with the manufacturer? What if you knew you were getting the best prices and there was no middleman? Working with a transparent sourcing expert can result in thousands of dollars in long-term profits.

  • The sourcing consultant conducts a thorough search and offers you further possibilities.
  • You receive the standard quotation that the manufacturing company uses domestically.
  • You pay the amount that the shipping company determines, and you have more options regarding the shipment.
  • Except for unusual requests from the sourcing agent, the manufacturing company exports products straight to you. As a result, you will be able to understand and handle the entire process without a middleman.

Confusion of Buyers: What Does a Sourcing Agent Do?

The most recent email we received today inquired about our clothing production. After approximately ten minutes, a WhatsApp message arrived inquiring about our drone manufacturing activities. This incident was the final trigger that compelled me to pen this article.

We consider sourcing consulting to be a critically important task for every buyer. On this website, we provide a comprehensive analysis of the basic manufacturing sectors in Turkey. Furthermore, we add some real-life case studies to provide a clear understanding of our work. The articles we wrote on Turkish manufacturing sectors were thoroughly researched and well-written. It may have given the impression that we were promoting these products to the readers. However, we have also included the top companies in several of these sectors. So, if we were manufacturing, what would be the purpose of including a comprehensive list of competitors on our website?

Sourcing Agents May Also Be manufacturers, but Cannot Manufacture Everything

Sourcing agents have the capability to manufacture products, and I am not suggesting otherwise. However, a sourcing agent is not capable of manufacturing 1,000 products across various categories. It is not true if a sourcing agent claims that they manufacture what you need. Sourcing agents reach out to the appropriate manufacturers and obtain price quotes. Certain sourcing agents excel in logistics and are capable of handling the entire export and import process. All of these tasks can be accomplished, and the necessary information can be found on their respective websites. However, handling the shipment process does not mean that you are actually manufacturing the product.

Sourcing Agents Pretending to Be Manufacturers

Many sourcing agents falsely claim to be the manufacturer of the product you are seeking. It’s important to note that many of these individuals are working remotely and reaching out to the appropriate manufacturers on your behalf. The price quote is only provided after a commission agreement is made with the manufacturer company, resulting in an increased price being offered to you.

Is Sourcing Consulting A Bad Business Strategy?

At the start of our website’s launch, a few companies contacted me to offer their feedback on our pricing and business approach. While I cannot recall the specific number of companies, their feedback indicated that our pricing was too low and that we may have taken an unproductive strategy. I was told that simply locating the proper manufacturers would not make us any money but that we should eventually receive a commission from the company. They also informed me that no one would pay for our consulting services. One of them even remarked:

“112 dollars instead of making thousands of dollars? Please allow us to earn you money. Just forward your clients to us.”

I was devastated at first. After further thought, I concluded I was on the right track. How can a tiny local company like mine attract such major companies? What was the cause of their initial contact with us? And why did one of them bother calling me to boast about their Turkey sourcing expertise?

It is obvious that a minor increase of only 0.5 cents per product might result in a substantial profit of 1000–2000 euros or dollars per transaction. This rich possibility might last for years with a good commission arrangement in place. However, I opted against pursuing this notion because I couldn’t trick the client into believing it was the best price.

We will Remain as a Sourcing Consulting Agent

I dislike deceitful behavior, am incapable of lying, and am not seeking fortune. I understand that there may be room for criticism in what I have written, and it is possible that you have valid points. I decline the commissions offered by numerous Turkish manufacturing companies. When I reach out to a company on behalf of a client, my initial statement usually goes like this: “I am not a commissioner; my purpose is to inquire about the most competitive prices for this product, considering these specific specifications. I will also give you the contact information for my client.”.

Advantages of hiring a sourcing consultant
Pros of Sourcing-Consulting

An Unfortunate Update for Those Who Criticize Sourcing Consultants

There are still individuals who value thorough research before making purchases from Turkey. Our work is highly appreciated, and our company often receives tips. Initially, the three individuals I interacted with made me feel inadequate, but I am determined to keep going.

While some may perceive us as amateurs in the eyes of big company purchasing managers, I genuinely believe that our sourcing consultancy services are the best.

Although our sales may appear lower compared to other companies, we take great pride in the passion and commitment we bring to our work. We are completely transparent and value building meaningful connections.

I am finally doing what I have always dreamed of, both mentally and emotionally. In addition, I have the greatest team; we have been together for around 10 years.

Future of Sourcing Consulting Agents and Sourcing Agents

In the future, individuals will come to appreciate the significance of sourcing consulting and seek out reputable and trustworthy sourcing consulting businesses, such as ourselves. We will also expand our client base and establish more international connections. People will eventually come to understand the importance of objective and contingent sourcing consulting, which means that the current service fees will no longer be valid.

I am confident that our income will triple within the next 3–4 years. On the other hand, individuals receiving thousands of dollars will experience a significant decrease in their client base, losing up to 90% of their customers. Only those who are transparent about their service fees or capable of handling the entire export/import process will survive.

I recently joined Medium: Sourcing Consultant

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  1. Hello from Kiddishop.

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