This was a great eye opener for me and hopefully
will help some of you. We did not see how we could possibly
afford to sell wholesale AND pay a rep 15%. Then a fellow jeweler
had me take the following equation and boy was I shocked!
If you did shows last year, take all your show expenses (travel,
gas, lodging, entry and jury fees, food, gift donation to show,
etc.) plus work time lost (travel days, not able to work at show
days, etc.) and divide that by the number of shows you did that
year. This gives you an average. Now take the total amount of
sales from shows, less your cost and less the show expenses
average. Now figure out what percentage you actually made on the
items you sold.
In our case it was much less than wholesale less the 15% for a
rep and we get to stay off the road and have much more production
time, which lowers our cost per piece. Also if you do wholesale
shows you still have the expenses, plus downtime from production,
and this always comes up to more than 15% charged by the rep.
When figured this way, the cost of the rep is real cheap. That
is assuming the rep is doing his/her job and making big sales for