I’m in a position to have someone rep my jewelry in a location far
away from my home. I’ve never used a sales rep before, and I’d like
to know what is the industry standard for percentage of sales to the
sales rep. If anyone has any experience or knows of a good
source for this, would you please share your knowledge?
Thank you so much!
Miachelle
If representation includes ALL DOCUMENTS AND AGREEMENTS SIGNED AND
NOTARIZED,with copies faxed or forwarded to you, and ongoing sales
reports from the vendor/consignee hand retrieved and faxed or
forwarded to you, and monthly payments made to your rep for you and
then wired or otherwise transferred to you,and an occasional surprise
inventory of the site and stock- the the standard should be 20% of
sales…not inventory,not any other services the person provides…they
are your sales rep, no?
Any other services provided should be met on a per incident
basis…and you may make per diem arrangements for days the person
will be involved doing your bidding for more than six hours (i.e.-
transportation,a meal, and incidental expenses submitted and
reimbursed as agreed on after the fact and the initial allowance
provided, etc.). Always up from there but with a cut going to the
vendor and a cut going to the rep, and your materials and labour
figured in,overhead,insurance,cost of doing business, and legal
retainers,and other personal liability insurance you may hold all
looked at,I seriously URGE you to review your pricing structure
before making any consignment arrangements far from where you
are,and including duties if any ( pre-made goods carry taxes in many
countries,and in some states there are additional sales tax beyond
simple sales taxes),and the agreements you make with your rep should
be well spelled out too. then everyone is on the same page at all
times. you, your rep, and the consignment venue owner. Remeber to get
all telepone and contact on each location your items are
to beplaced including their D&B #,insurance company’s name and number
( they are assuming responsibility for insuring your goods too), and
the shop manager’s as well.You will want to follow up
with the store owner and manager -BOTH- once your items are placed in
their gallery or shop to reinforce your business relationship and to
introduce yourself,and thank them for carrying your line…these are
the very base basics.If you need forms, etc.write off list, I’ll send
you some standard legal agreement and business forms,and sales
representative agreements as well.
R.E.Rourke