I've read on these postings that distributors generally receive a 40% discount and retailers a 50% discount, but is there an acceptable commission paid to a salesrep who sells direct into large retailers (Toys R Us, Wal-Mart, etc)?
Commissions and percentages to distributors and salesreps
Fri, 12/03/2004 - 22:04
Wed, 01/12/2005 - 15:46
#1
Commissions and percentages to distributors and salesreps
Though I am far from an expert at the business side of the world, I would treat the sales rep as a distributor. They are basically doing the same things as a distributor, so unless you want o make a special offer to help get you product out the door, I think distributor cost should be acceptable.
PS: Sorry for the long delay, many of us on the site are design oriented. There are a couple (such as myself) the attempt to hit the self publishing side of the industry, but I have been busy with RL items these days.
While there will be exceptions, expect a distributor to want (and require) a 60% discount, then they will sell to the retailer at a 50% discount, who will then charge retail.
In other words: your $30 game a distributor will want to get for $12 per unit -- and that's after you pay to ship it to that distributor.