Outside sales rep

islandtees's picture

Does anyone use a outside sales rep.What is a normal pay rate.Would it be just commission or salary What are some rates that you use.Thanks

Work up a baseline pricing chart to figure the cost of printing whatever shirts they order. Split the profit beyond this price with them 50/50. Full commission. Like the other guy said existing salesman would probably go for this.

I dont know where you are located but in our area its about 10-12% full commission. Some of the bigger shops pay medical but most dont for a full commissioned job. 10-12 does not sound like a lot but when they bring in a 20,000 piece order it adds up quick. Theres no way I would split the profit 50/50. Why would I take the risk of buying all the equipment, paying the bills, have 100% of the responsibility for only half the profit? That would be a sales persons dream. For our sales people we start them out higher than the norm for the first year to help out until they build a client base but its nowhere near that. Hope that helps.

Silverfox's picture

Inkwerksspd wrote:
I dont know where you are located but in our area its about 10-12% full commission. Some of the bigger shops pay medical but most dont for a full commissioned job. 10-12 does not sound like a lot but when they bring in a 20,000 piece order it adds up quick. Theres no way I would split the profit 50/50. Why would I take the risk of buying all the equipment, paying the bills, have 100% of the responsibility for only half the profit? That would be a sales persons dream. For our sales people we start them out higher than the norm for the first year to help out until they build a client base but its nowhere near that. Hope that helps.

I would guess that one of you are talking about 50% of net and hiring the sales person as an independent rep. where the rep is responsible for his/her own expenses/taxes. While the other one is talking about having an employee and paying them 10-12% and covering their expenses? If this is the case you probably are both paying your employee/independent rep close to the same income.

I think if you use outside sales it would be on commission or they might take a draw to start off with until they can build sales, but on the other hand if they are allready in sales they should have clients all ready, Hmmmmm good question

Darryl