Become a Member
Guides and Reports
Show All »
Metrics & ROI
Search Engine Marketing
More Marketing Topics »
Professional Development Solutions
Schedule of Events
Digital Marketing World
Products and Services
Post a Question
Quick Start Guide
Find and Post Jobs
Real-World Education for Modern Marketers
Join Over 627,000 Marketing Professionals
Ask your question ... sign up today! It's FREE!
Just for Fun
MProfs PRO Seminar Q&A
Search more Know-How Exchange Q&A from Marketing Experts
This question has been answered, and points have been awarded.
Clothing Sales Prices And Outside Rep Commision.
7/21/2006 at 12:07 PM ET
have a few questions. We have a clothing line and want to have an agressive startup.
what would we pay an outside rep and what would he typicly sell the apparel for.
this is high end action sports apparel full color prints
on front and back.
t shirts men retail 20-
womens shirts various style 22-
what would they sell them for and what would i pay sales rep for agressive start?
7/21/2006 at 12:26 PM
I hope you're having a great day!
this is a very difficult question to answer given the fact that you have not described who your target customer is and what the price of your merchandise is set to sell at.
WHAT'S THE TARGET MARKET OF THE BUSINESS...
For instance if you are a high-end marketer of clothing your price breaks will be set differently that a mid-end or low-end retailer. Of course it's possibly true that your cost of merchandise will be higher as well if you are buying your merch from high end designers versus lower end wholesale outlets. When I was a teen I sold clothing in a low-end clothing store so they paid me by the hour. But I have friends who sell for Neiman Marcus and another who sells for Carson Pirie Scotts. Of course they are paid commission but their rates vary.
IN SALES COMMISSIONS CAN ALSO VARY BASED ON THE SALE PERSONS EXPERIENCE AND EXPERTISE...
so please consider the thought...what will I pay a seasoned sales rep versus an entry level sales rep. If this is not considered before you start offering commissions you may be forced to give a higher commission than you anticipated and therefore having a terrible impact on your profit margin.
Have you created a business plan for the business? If you have then figuring out the price range for the sales rep will be based on what you expect your rate of return to be after the merchandise is sold.
There are plenty of other things to think about as far as this question is concerned but I believe the more information you offer at this point the more information you'll get from the marketing experts here. Thanks & Remember our only real problem in life is our failure to be "MORE Creative" than we’ve ever been. If you “Invent” your opportunity YOU WILL most definitely create your future. Just know that I'm here for you if you need my help. Is there anything else I can do for you?
Your Servant, Deremiah, *CPE (Customer Passion Evangelist)
I first got into sales almost 20 years ago, plus spent 6 years in accounting and I'll tell you figuring out commissions can be very complicated depending on the level of how you look at it and also what is acceptable in the market place.
7/21/2006 at 12:43 PM
retail shops surf shops, dirtbike shops.
retail prices are on 1st post
7/21/2006 at 12:57 PM
First of all... I assume by Rep you actually mean commissioned sales agency. This is someone who does the selling but never takes possession of the goods. These people are independent contractors who cover their own expenses ect.
I suggest a commission program that is based on selling at book price. Negotiated deals, whether they be based on quantity or simply clearing out old product would be at a much lower commission.
Sales that are not paid within terms should also be paid a lesser commission.
The standard amount in most industries for this service is 7-15%. Why the fluctuation? Products with high name recognition pay less than products with little or no brand value.
If you have additional questions about how this works, drop me a separate email.
7/21/2006 at 1:47 PM
commission levels can vary from 10-15% up to 15-20% for a more seasoned sales rep. You can also do a small hourly rate scale and let the commission serve as a bonus for sells generated. But again you determine the commission based on what you want your company to earn and what you think is fair for your employees to earn.
Your Servant, Deremiah, *CPE (Customer Passion Evangelist)
7/22/2006 at 7:37 AM
Compensation depends on the type of outside reps you use.
1. Rep Firms - Rep firms many times are buy/resell. They will purchase the product from you as a manufacturer and resell at their own pricing to their customers. In this scenario, they are in control of their own compensation.
2. Independent Contract Sales people - These people are paid only on what they sell and are paid a high commission. Generally 20%+. They pay their own taxes and are their own "business"
3. Salary sales - These people work for you and are paid a salary only. They are given sales goals, which if they exceed they are bonused on.
4. Salary + commission - Low base plus generally 10-15% commission on sales.
Hope this helps.
To Greater Success,
7/26/2006 at 6:24 PM
Sorry i was away for a little bit i will award after this.
What is typical price a rep will sell a 20- t shirt to a store for?
or a 40- hoddie etc
i want to know if i am correct.
if a independent sales rep sells my shirt to a store for $12- and retail is $20- and i pay him 20% i give him
$2.40 do these prices sound correct?
BACK TO TOP
Post a Comment
Take 10 / Online Seminars
The Most (and Least) Effective Keywords in Email Subject Lines
by Ayaz Nanji
Six Trends for 2014 in Mobile Marketing and Advertising
by Gregory Kennedy
Get Rid of Your Lousy 'About' Page Once and for All
by Sonja Jobson
Four Tradeshow Marketing Takeaways From an #MPB2B Bright Bulb ...
by Kristin Veach
QR Codes Kill Kittens: Author Scott Stratten Talks to Marketing ...
by Kerry O'Shea Gorgone
See more marketing articles »
MarketingProfs University: How to Make Your Content the Belle of the Marketing Ball
Three P's of Successful Marketing Teams: People, Perspective, and Process
Take 10: Three Ingredients That Turn Engagement Into Measurable Business Results
Future-Proof SEO: Immunize Your Business Against Search Engine Updates
Kiss Churn Goodbye with Data-Driven Campaign Management
See more online seminars »
MarketingProfs uses single
sign-on with Facebook, Twitter, Google and others to make subscribing and signing in easier for you. That's it, and nothing more! Rest assured that
provide your social data to 3rd parties
contact friends on your network
post messages on your behalf
interact with your social accounts
Your data is secure with