Question

Topic: Other

What % Should I Pay A Sales Rep For New Age Prod.

Posted by Anonymous on 125 Points
I am beginning a line of new age products to be used by individuals and professionals for healing work.

If I find a sales rep who would like to add this line to their products - what percentage would that rep expect to be paid on wholesale orders?

I assume that I would pay the % - or would the rep charge more to cover the costs?
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RESPONSES

  • Posted by Peter (henna gaijin) on Accepted
    Can't give you an exact number, but here is some background info that may be helpful:

    M"manufacturer's rep's" generally are people who do not take ownership of the product, but instead are involved with growing the business in the area. They get a commission based on all sales in their territory, paid by your company. Commissions are often in the range of 5-15%, but that is just a ballpark. They often set up distributors and are involved with local promotions (trade shows, events, etc.

    Distributors do take ownership. They buy the product from you, inventory it at their location, and then turn around and sell it to a customer at a higher price, taking the difference as their payment. The markup varies from 20% adder to more than doubling the price.

    In distribution, there is a term "turns and earns". Turns is how much they sell of the product in a year (more specifically, how many times they turn over their inventory in a year). Earns is how much they earn when they sell a unit of the product. If turns are high, earns can be low, if turns are low, they need a high earns. So, you need to think about how much they would realistically sell of our product versus how much they have to inventory to try to get a feel for what sort of earns they would need.

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