Becoming an agent/distributor what commission to charge

[Jill280261]

Hi new to the forum and asking my first piece of advice.

We are just setting up an Agency to promote/represent branded clothing and other products.

My question is, what level of commission should we charge, does anyone have any experience in this field that could help us.

We have done quite a lot of research and the figures we are being presented with is inbetween 10 & 15%, what we have also to consider is that we will be having a showroom to present the items to potential retail clients and also building up an network of other agents who will cover UK/Ireland nationwide under our belt, so they will also want a slice of the action (they will have exclusivity on areas providing they are hitting targets. We have made quite a few good business contacts and have set up several meetings in the next 4-6 weeks where we will need to present our terms and conditions, we will also be representing the brands at trade fairs, and are being asked what fees we charge for the trade fairs, we have some figures in mind but would really appreciate any feedback from others more experienced in this field.

thanks in advance

J

[A.N.Onym]

Well, you are the one to answer the question. 10-15% sounds alright to me, though I am not a clothier.

You need to consider whether you'll make business with the comission at all, and then add about 10-20% over that to get the profit and room for growth.

You may want to ask your clothes provider - he must have other distributors and contractors.

You may also want to contact business owners in similar industries.

If you have done a thorough research, than whatever you have come up with is what you need to charge

[lesliedocherty]

Hi,

Our company represent a few brands in Scotland, 10% is the norm they pay for the trade show and you attend to man the stand aslong as they pay your hotel costs, they deal with other areas.

What you seem to be talking about is being a master agent or distributor, we also act as a distributor for a few American belt buckle companies, where we get a 30% discount and deal with all shows and invoicing.

leslie