[jingCo]

I'm in talks with two agencies right now. One is a regular agency and another is a distributors. What are their standard rates?

From talking to people in the industry one veteran told me it should be 7-8% of wholesale. Another one told me it's 8-10% and more towards 10% if it's a new brand and needs work.

Right now one agency I'm working with is telling me that the standard is 10%-15%.

The distributor wants 40% below wholesale, FOB. Are these rates reasonable? Does it change base on geographic area? I was reading another distributor and they offer 30% above my manufacturer cost, FOB.

 

[moffett8]

It's what ever the traffic will bear and how bad they want your stuff

 

[jingCo]

There got to be industry standards. What's the range everyone else is working with?

 

[jingCo]

I've researched a lot of posts and many have asked the same questions I'm asking.

I had a long conversation with my buddy who works at a showroom in LA. His agency fee is 12% so 10%-15% of wholesale is standard. As well his showroom charges rent of $1000-$2000 monthly.

Contacting my friends who might know about the distribution centers. Will educate you guys once I know. Or if anyone else knows, please add your knowledge.

 

[Ramsey]

How did everything turn out for you? I hope you had some success!