# What's the commission rate for agents and distributors



## jingCo (Jun 22, 2007)

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.


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## moffett8 (Jun 26, 2008)

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


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## jingCo (Jun 22, 2007)

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


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## jingCo (Jun 22, 2007)

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.


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## Ramsey (May 18, 2008)

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


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