What percent would you pay a sales person on commission basis?

by Josefina.
(Miami, Florida USA)

question-mark-tan-on-red-grungeI will like to hire a sales person on a commission basis but don’t know the percentage I should give her for selling my designs. I have a small business.

I am a jewellery designer for semi-precious stones and pearls. I have been selling from home, in fairs, and now will hire sales person and soon I will have my website. I have 2 options for the sales person which I need your feedback:

* give her a flat commission for selling my jewelery (which % ?) and I dictate the retail price OR

* send her the collections and let her do the mark- up and retail price / at her discretion. My concern is that with this option, I will not have access to the retail price of the jewelery. Should I be concern with this terms or not?

More important: what do you recommend?

Josefina
“J” jewellery

Comments:

Cannot give you percent but can add my 2 cents.
by: Lee

Josefina,

I would not give up control of pricing my products. Another option would be to get her input on what markup she would make and work from there. This way you will know where she stands and can judge a fair commission from there.

Lee

Commission for salespeople
by: Rena

Hi Josefina, I agree with Lee – it’s important to set your retail prices yourself.

Is your salesperson is working for you in a traditional “sales representative” capacity, selling your jewelry to stores and galleries for you?

If so, then you will want to see these two pages here:

Hiring a Jewelry Sales Rep – what you need to know before hiring a rep, where to find good reps, and what to ask a rep before hiring him/her.

Interview with a Jewelry Sales Rep - the rep’s point of view of selling your jewelry; loads of tips on working in a win-win way with your rep.

Sales reps’ commissions usually average around 15% to 20% of the sales they make for you.

Or is your salesperson selling your jewelry directly to the final customers, such as at jewelry parties, jewelry shows, private showings, trunk shows, etc.?

If so, see this page here:

Selling Jewelry at Work – scroll down through this article till you come to the heading, “Let Friends or Family Show Your Jewelry at Their Workplaces”.

I hope this helps, Josefina – and remember, you want to be sure to work out a written agreement that is beneficial to both of you, stating exactly what each of you is responsible for, and what’s expected of everyone involved.

percent
by: Anonymous

hi
several years ago I had a rep who did home parties with my stuff. And I paid her 20% which worked for both of us. She was happy with that and worked my stuff , got lots of bookings, had a great time doing it and I stayed home and worked.
I wouldnt sell someone else’s stuff for less than that and I would definately set your prices yourself. You certainly want to be in control of how you are represented out there, The rep should get a fair percentage but you ultimately set the prices.

Sales Commission’s…How Much???
by: Maryanne Murphy

Greetings!

Rena has the answers!!!

Anything I have EVER wanted to know about the home-based jewelry business has been covered in Rena’s websites.

So read Rena’s advise first…especially getting your agreement in writing.

I agree, do not have someone else control your jewelry pricing. You must have control and set those prices yourself.

In pricing my jewelry I include 25% for marketing. It takes money too make sales just as much as the money it costs to create your jewelry.

Within this 25%, I donate 20% of purchases to the fund-raising events I do, 20% to hostesses who have a home show…so I would give 20% to someone selling my jewelry.

Just remember, that it costs money to make money and build your marketing costs into your prices!

Please keep us posted on how this is working out for you. And Good Luck!

Maryanne

Sosie Designs Jewelry
by: Sosie

I have a small jewelry business as well and have several sales reps that sells to the stores and I pay them from 15% – 20% commissions depending on their experience and if they do their own tradeshows. Most of my reps are 15% and I provide them with sample boards with my wholesale prices. One of the things I learned from Rena’s website and e-book is to make sure you have a contract and check references. It’s also important to create a detailed list of all the samples your going to send.

I hope this helps!

Marketing and sales reps
by: Rena

Maryanne,

Thank you for your kind words about this site! :o)

Also, I like your strategy of budgeting into your pricing the cost of marketing / donating.

Sosie, thanks for sharing your valuable experience!
All very good advice and tips
by: Greencat

HI!
I have to agree with everyone. They gave excellent tips.
I think I would start by offering your representative 15% and let her ”prove” her way to a higher commission.
However, do not let her be in control of your pricing! They are your jewelry, and it’s your business!
:) Greencat

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