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wholesale rep payment?

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I am thinking of finally taking the plunge and getting a wholesale rep.

I've spoken with a few people locally and the going rate seems to be 15%

of sales on all accounts originated by the rep., for the life of the

relationship with the retailer.

 

Does that sound about right? Any particular tips you have? Advice on

literature, brochures, etc. to provide to the rep?

 

Thanks!

--

Debbie

deb

www.debrasrhapsody.com

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Hi Debbie,

 

An old friend of mine is a natural products broker, and we've talked

about this subject a LOT over the years!

 

15% is the high end of the spectrum. A direct line broker (meaning you

the manufacturer ships directly to the retailer after the order is

placed through the broker) will usually get somewhere in the range of

about 8% - 15%.

 

If the line goes through a distributor (meaning the broker gets the

store to order, but the product is then shipped by a distributor,

United Natural Foods for example, not the manufacturer directly), it

is closer to around 5% - 10% commission.

 

All business accounts brought to you by that broker are considered

their clients and they get a piece of the pie of all their orders.

 

As for brochures, etc .. the more promotional materials you can give

your broker to work with, the better they can promote you! :)

 

Happy selling!

 

*Smile*

Chris (list mom)

http://www.alittleolfactory.com

 

 

, Debra McDuffee <deb wrote:

>

> I am thinking of finally taking the plunge and getting a wholesale rep.

> I've spoken with a few people locally and the going rate seems to be

15%

> of sales on all accounts originated by the rep., for the life of the

> relationship with the retailer.

>

> Does that sound about right? Any particular tips you have? Advice on

> literature, brochures, etc. to provide to the rep?

>

> Thanks!

> --

> Debbie

> deb

> www.debrasrhapsody.com

>

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