Final answer:
Dominic should explain the value of his services when asked to reduce his commission, aligning with the concept of the 'going rate' and maintaining competitive and fair pricing.
Step-by-step explanation:
When Dominic's seller clients ask him to lower his commission rate, the best way for him to reply is by highlighting the value of his services and justifying his fees. A professional and tactful response could be, "I base my fees on my services. Which services would you like to give up?" This reply allows Dominic to open a discussion about the services he provides and demonstrate his value to the clients. At the same time, it aligns with the concept of the 'going rate' where a service provider must balance competitive pricing with the quality of service delivered, similar to how agricultural growers operate within their market constraints.
Furthermore, Dominic needs to be prepared for marketplace competition, much like a firm considering entering a market dominated by a monopolist. He should consider that his commission rate needs to be competitive enough to attract clients without undervaluing his services.