Q. Does anyone know industry practice on a typical percentage a sales rep can ask for selling cut gemstones on consignment from a wholesaler to jewelers?
Area of Expertise: Sales
Industry: Jewelry/Luxury Goods
2 answers | Asked on 01/27/10 by:
Renee Getreu
Mount Shasta, CA, United States
Answers
Marv Emerling
Los Altos, CA, United States
First you must distinguish between "sales rep" and "distributor" or "reseller". Some that call themselves "reps" are not acting for you but for themselves, which makes them either a retailer or distributor. Then you have used the term, "consignment"; to whom will you be consigning - the "rep" or the ultimate person or firm to who he "sells" the product?
True sales reps write orders that you ship and bill to the end customer, then later pay the rep a sales commission. On that % - I am not a good source for the jewelry industry, but I am an experienced rep and also, later, a manufacturer who used reps.
Sort out the actual chain of distribution before going further. And - are you related to Getreus originally from the Cleveland OH area? (Sandy Getreu??)
Posted on 02/05/10
Len Bass
Valley Cottage, NY, United States
I checked with some industry leaders in the NYC Jewelry dist. for you. There really is no standard percentage. It depends on the quality of the stones. On higher pried items reps will edarn as little as 2 tp 3% commission. On items of lessor value a range of between 15 & 20 % is appropriate.
Good luck!
Lenbass@hotmail.com
Posted on 02/05/10
