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Researching Commission Rates Of Clothing Reps

Posted by Anonymous on 1/17/2005 at 3:14 PM ET 250 Points

Hello,
I am currently researching starting a boys' clothing line, and am having a challenging time finding out approximate commission rates I should expect to pay to a sales rep. I've heard everything from 7-25% (from sources that aren't in the field, though).
As you are experts, I would greatly appreciate some direction from you.
Thanks!

Posted by leskennedy on 1/17/2005 at 4:58 PM Accepted

Congrats on exploring the start of your new line of clothing, it can be a very creative and satisfying line of work. To answer your question, it depends on whether you are employing sales staff, or if you are hiring independent distributors. I suspect you're looking for independents given that you're just starting out. The distributor, by in large, is responsible for their own costs of travel and expense, and all employee costs - including salaries. So all they get is a commission on sales (usually towards the higher end of your range for an unknown brand). I would recommend a trial period, and then, re-negotiate annual contracts. As your brand becomes well known, you might want to consider alternative arrangements with the distributor - for new commission rates, expanded/changed territory, etc.

All the best, Les

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