# how much to pay for commission sales?



## Bodhi (Aug 30, 2009)

I've been selling honey through a local farm stand on commission. The farmer said, "Pay me what you think is fair." I'm not in this to lose money, but I don't want to insult the man, either. 

1# jars are selling for $6. What's a fair commission to pay?


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## Lance99 (Sep 21, 2010)

Around here, wholesale price is 25% off of retail, and they pay for it before they get it. I would think just selling it on commission would be less than that, somewhere between 10% to 15%.

If you want to keep it easy, if you are selling it for $6 and you gave him $1 commission, that would be a little over 16%. The $1 is a nice round number and is easy to keep track of. If he wants to make more, he needs to buy it wholesale in volume. And if he sells enough, you might make that suggestion as to how he can make more money doing it that way instead of commission only.

Lance


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## sqkcrk (Dec 10, 2005)

I would look at it this way. $1.00 is 20% of $5.00. So, give them $1.00 and call it a 20% commission.

Why don't you do what I do and sell it to the stand for $5.00, let them mark it up and sell it for whatever they can and then buy back what they don't sell at the end of the season. It's a much easir way of keeping track of the money.

I never do commissions. Who likes to keep track and chase money?


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## Bodhi (Aug 30, 2009)

Thanks for the replies so far. I thought a buck a jar might not be enough, but it may be after all.


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## sqkcrk (Dec 10, 2005)

What do the folks at the farm stand think?


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## oldenglish (Oct 22, 2008)

I guess its all going to come down to what you can pay and still make money on and I am sure for every beekeeper that will be a different price point. The more you produce the lower you can go.

I sell 90% of my honey at work for $11 LB or $6 for an 8oz bear, I had a co worker come over and said to let him know when I was having a sale and he would get some, by the end of the day I was down to my last two jars and he took both at full price. Now if I had a significantly larger crop I might lower my price but as it stands I am going to be sold out by xmas.


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## sqkcrk (Dec 10, 2005)

What kind of commission do you pay your employer?


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## Grant (Jun 12, 2004)

sqkcrk said:


> What kind of commission do you pay your employer?


Hmmmmm, now that's something to think about. I keep a few jars at my office for the "convenience" of the people who think it's too far to drive to my house and think it's too difficult to remember when the farmer's market is held. It's there, but not promoted. Maybe I owe my employer a commission!

One of my buddies is a school custodian and sets his honey up on a table in the teacher's lounge. Very lucrative with a reasonably captive audience...and nice and quiet.

Grant
Jackson, MO


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