Hi Everbody! I recently was quoted two different ideas on percentage
of commission a rep gets:
1) 10-15% of wholesale price
- 10-15% of retail price
Which is correct? Appreciate your answers!
All the Best,
Stacey Seigel
werockltd@aol.com
I would think a percent of wholesale is more normal. Wholesale price
is something you KNOW. Retail is unknown, not everyone sells at
ticket price.
Besides, 10% of retail is about double 10% of wholesale, you want
your cost lower.
Go with the percent of wholesale.
David Geller
JewelerProfit
510 Sutters Point
Atlanta, GA 30328
(404) 255-9565
www.JewelerProfit.com
Hi Stacey,
If the rep is selling pieces wholesale, then it is 10-15% of the
wholesale cost.
I have asked my rep to help sell during retail shows to the public
and I pay her 10% of the retail price.
Hope this helps,
Pam
The rep’s commission should be based on the wholesale price. The
retailer can set any price he or she wants. At keystone 10-15%
translates to 20-30% of retail. Can you afford to give that big a
percentage to your rep? I doubt it.
Joel
Joel Schwalb
@Joel_Schwalb
www.schwalbstudio.com
Just a note on percentages people throw around on any level retail or
wholesale. When you have an item for sale you have your base costs
included. Let=92s say you have
gold 50.00
labor 40.00
Total 90.00
Markup 90.00
Grand total 180.00
10% of this total =18.00
Always remember that 10% is equal to 20% of your markup so you now
have 72.00 I=92ve seen people talk about discounts like there nothing.
Always think of the percentage as double from your profit.
Imagine a 25 or 30% discount, you would be out of business.
Unless you have crazy prices where they give 70 percent off and
still stay ahead.
Allan Creates
P.O. Box 51 Cote St-Luc
Montreal Quebec
Canada
Tel: 514-488-7553
Fax: 514-489-7299
Superringfit.com
Perfectly Fabulous Fit Arthritic Shanks