What % Commission To Expect

[Chavez]

Hi!

I am hoping to put some of my leather belts on consignment with a few local independent retailers and I am wondering what % commission to accept.

In my understanding, the higher the commission they charge, the lower I need to set my return if I want the goods to sell, i.e. higher commission => higher price => lower sales unless I reduce my price to the retailers.

My brief research shows that retailers in mens accessories sector would generally be looking at a 30% margin or re-selling wholesalers' goods. As I am selling individually crafted items, would the % be different?

What commission do you usually accept?

Thanks!

Chavez.

[Cyberthrasher]

I don't do any of this yet, but the few people I've talked to and the research I've done seems to lean toward the 30% range. Think about consignment as the store just buying more products to retail without the risk of loss. What's a reasonable markup for the store to make money? So, I would take whatever rate you would normally set and drop it by 30%, then ask yourself if you can live with that. It's a price to pay in order to "guarantee" work/sales when you take a wholesale/retail point of view on it.