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 40% commission fee too much?

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T O P I C    R E V I E W
melody Posted - Jul 22 2011 : 09:16:42 AM
I've been notified that I would qualify as a vendor by an on-line web-site to sell my soap, embroidery and hand knit woolies, but they are asking for 40% in commission. This is what they will provide for me as a vendor:

National Marketing
Warehousing
Packaging
Shipping
Sales tax and state reporting
Handling of product returns
Professional writing
Professional product photography
Monthly updates via e-mail

Is that the norm? 40%? Sounds a lot to me.

What do you think? Talk to me ladies....

Melody
Farmgirl #525
www.bythebayhandcraftedsoap.blogspot.com
www.longtallsallys.etsy.com

9   L A T E S T    R E P L I E S    (Newest First)
brightmeadow Posted - Jul 25 2011 : 6:45:59 PM
I don't know about online selling commissions (at least other than craigslist or ebay) but here are my choices for a local auctioneer, and the merchandise is different between "estate sale" stuff and artist-quality work.

1. Hire an auctioneer to do an on-site auction. Pay the auctioneer a 25% commission. Pay for all advertising. Pay for any help he brings to the location to help pack and move the boxes from inside the box to outside at minimum wage or more. Pay for any additional expenses. Take the chance on a rainy day because you have to schedule 4 or 5 weeks in advance. Take a chance on writing a check to the auctioneer for his services that is more than the proceeds of the auction.

2. Pack up and deliver the stuff to a local auction house. Pay the auctioneer a 33% commission. Walk away. Receive a check later.


Option #2 is well worth it, to me, the third alternative is having a garage sale, working for hours marking everything with price tags, then sitting in the sun all day waiting for customers and bargaining with most of them over what the stuff is worth...


I guess it all depends on how you value your time. If you hate doing the packing, shipping, and taking to the post office because your time can be used more productively creating more artwork, you have to decide if the services the online auction provides are worth their "cut" of your gross. Would you be able to sell it at a higher price?






You shall eat the fruit of the labor of your hands - You shall be happy and it shall be well with you. -Psalm 128.2
Visit my blog at http://brightmeadowfarms.blogspot.com ,web site store at http://www.watkinsonline.com/fish or my homepage at http://home.earthlink.net/~brightmeadow
naturemaiden Posted - Jul 25 2011 : 11:02:06 AM
way to high!

http://www.naturemaiden.com/- Handcrafted Bath & Body products
http://flowerchild-lifeinthegarden.blogspot.com/ My Blog
http://groups.yahoo.com/group/farmgirl-crafting-group/ - A group for all farmgirls wanting to share their craft.

melody Posted - Jul 22 2011 : 3:02:49 PM
Yep...you are right. It takes TIME to do what I do and I was flattered at first, but I just had a funny feeling about the percentage they wanted.


Thanks ladies-'preciate all the GREAT advice. I will pass on this one.

Melody
Farmgirl #525
Montrose Girl Posted - Jul 22 2011 : 2:44:37 PM
Don't do it. Even as a writer the most an agent takes is 15%. ANything more, and the experts - every other writer on the planet- tells you not to do it. Your product, not theirs.

http://www.inntheorchardbnb.com/
embchicken Posted - Jul 22 2011 : 12:22:06 PM
40% is way out of line.

~ Elaine
Farmgirl sister #2822

"Find yourself a cup of tea; the teapot is behind you. Now tell me about hundreds of things." ~Saki

http://embchicken.blogspot.com

http://gusandtrudy.blogspot.com
Okie Farm Girl Posted - Jul 22 2011 : 12:17:18 PM
I was asked by a local store to put my stuff in for consignment and they were asking 30% with the guarantee that 10% of that was going to a tithe and I thought that was ridiculous. The most I'd ever paid was 15%. Sounds like a scam to me.

Mary Beth

www.OklahomaPastryCloth.com
www.Oklahomapastrycloth.com/blog
The Sovereign Lord is my strength - Habakkuk 3:19
owwlady Posted - Jul 22 2011 : 12:02:38 PM
That is definitely not the norm. The highest I ever heard was 10%.

"He treads the soil, with earth-love in his heart;" Ardon Antony
FarmDream Posted - Jul 22 2011 : 11:24:47 AM
I think that is too much. In my experience I have received a lot of offers for consigment. I was excited at first but then realized the emails were very generic and they didn't specifically want my stuff, they just wanted a vendor, any vendor. The last consignment I did asked for 10%. Make sure the consignment is the right fit for your items. I used to be very flattered but now I know they are fishing for new vendors. I don't know anything about an operation as big as the one you're describing with warehousing, etc. Maybe you could email some of the other vendors and ask them if they are satisfied with their experience.

~FarmDream is Farmgirl Sister #3069

Live Today, Cherish Yesterday, Dream Tomorrow

http://naturaljulie.etsy.com
http://julie-rants.blogspot.com
Ninibini Posted - Jul 22 2011 : 09:23:28 AM
Um... YEAH... I don't know about that in a professional sense, but my first thought, Mel, is who's trying to make an income here - you or them! What kind of net would you make when all is said and done? Wouldn't THEY be making more off of your hard work than YOU would? Your time and energy counts for a lot! Good gravy - if that's what it costs, is it really worth it? Wowza... Hugs - Nini

Farmgirl Sister #1974

God gave us two hands... one to help ourselves, and one to help others!

www.papercraftingwithnini.myctmh.com


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