Brokerage Commissions

[Jeremy]

Rate Member - posted 03-16-2006 12:19 PM Profile for Jeremy Email Jeremy Send New Private Message Edit/Delete Post Reply With Quote Good day my friends. I am currently acting as a broker for a unique beverage offering. I am new to this and would greatly appreciate any guidance that you may be able to share with me. In particular, I am curious as to the appropriate percentage commission for different levels of beverage sales. I have extensive contacts to large grocery chains throughout the U.S. and have already been receiving very favorable feedback from them. The manufacturer has asked me to agree to a percentage of 5% on all sales that I am able to generate. Is this an adequate amount or should I hold out for more? I fear that my little bargaining power as a small distributor will put me in an awkward place, however my significant contacts could yield very favorable results for the company.
Thanks you for reading and any help would be greatly appreciated.

[JP QuikServ Drinks]

I would ask for 6.75%.

[Mr Zabe]

I would pitch 8.5% and accept 6.5%.

If you ask 6.75% then the negotiation most likely will end up at 5.5%. It's the old start the negotiation high find and acceptable percentage.

[ 03-17-2006, 12:03 AM: Message edited by: Mr Zabe ]

[Joey]

I pay my broker 5%.