Advise for Setting Prices with Sales Representatives

[Greg2009]

Im trying to figure out how to set my sales rep prices. I currently sell my product for 50 dollars to retail outlets. Recently a sales rep approached me and wants 15% commision. Should i add the 15% on to the selling price that he can sell it at making the price $57, or does the rep still sell at $50 and the company expenses the 15% ($7.5) cost out?

[stand856]

What's the product?
How much does it cost you?
How much were you paying him/her before?

[Greg2009]

Thanks for the reply. I am just wanting to know if I should have seperate pricing from my wholesale prices especially for the sales rep. EX: $50 dollars if a retail store wants to purchase stock and resell. Should i have the sales rep selling to the same type of customer at $57 ($50x1.15) to make up for the commission that has to be awarded to the outside sales rep. Or should I allow the sales rep to sell at $50 to retails stores and treat the commission paid to the sales rep as an expense?

[questeds]

What you basically have is a dealer model. If your RRP is $50, then you should treat the 15% is their markup, so they buy from you at 15% under RRP. If the retail store buys from you at $50, and say the RRP is $75, you should be selling to the rep at $50 or more if you so choose - you do not want the rep selling to customers you already have!

[genevie]

Im trying to figure out how to set my sales rep prices. I currently sell my product for 50 dollars to retail outlets
. Recently a sales rep approached me and wants 15% commision. Should i add the 15% on to the selling price that he can sell it at making the price $57, or does the rep still sell at $50 and the company expenses the 15% ($7.5) cost out?

HI,

IN that case does the product prize is enough or affordable to every one? If that would happen then you can add the 15% commission to the product prize...If not,the company will be the one to cater the expenses.