Know-How Exchange : Strategy

monte,
no information on t-shirt business but in my industry it ranges between 5-15% regardless of consignment, etc.
The driving factors are based on ease of sale. Established lines pay less. And, on negotiated prices. If the price is below book the commission rate drops.

I like Rons approach and it tends to work in most sectors I have worked in. Ultimately you need to look at your profit margin and sales forecast and see what you can afford :-)

Good Luck

Take Gavin Kennedy’s approach from his book, “Everything is negotiable”

Start at the top end of your commission expectations. They can negotiate you down; you can’t negotiate yourself back up.

Ask for defined accounts which you can service. Be prepared to accept a lower % on these.

Offer to do new business development on your own initiative. Ask for a higher level of commission on these accounts than ones from leads they might (Hope is a fine thing) supply you with.

For large potential orders, be prepared to be transparent with the supplier if price and competition is an issue. Be prepared to be flexible on an order for order basis if they will share the pain.

Be their eyes and ears on the ground – feed back information which will be of value to them.

When next negotiating terms with them, be prepared to list the non-monitory and the monitory value you have contributed.

I re-sell a number of products and I am yet to come across a supplier who will not sit round the table to discuss terms if a sizeable deal is on the table.

Best Wishes

Steve Alker
Unimax Solutions