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//So sample week #1 // Distribution - Cost & retail price

Mis à jour : 2 avril 2019





Here is a quick review of average commissions with French stakeholders and type of services you will have:


The rate depends on categories of your product and type of stakeholders


Marketplace: 8% to 15%

Dropshipping

Digital communication

Automatize order

Sales unit per unit

Big Retailers: 30% to 50%

Space Area

Customer support

Warehouse

Vendors

Purchase order

First purchase order per retailers with scalability

Distributor/wholesaler/Agent: 35% to 65%

Negotiation with decision makers and commercial opportunities with retailers

Operational Marketing with ambassadors

Digital marketing

Press relation

POS brochures & marketing

Customer support

Logistics

Warehouse

Several purchase orders from many retailers at the same time with scalability depends on sales performance


So sample 40% to 60% for distribution, depends on product category & setup price for LandInFrance program

So sample is not a distributor or an agency, we are a team specialized in the distribution of consumer electronics brands and connection with early majority. Our services are the best bundle to launch hardware products with big companies/retailers thanks to our exclusive partnerships, and Brand equity with retailers all around Europe.

Offering a launchpad, metrics and purchase order with many retailers

All these commissions rate are based on the retail price without taxes. Think about VAT in France with 20% for consumer electronics brands.


Example:


If you want to sell your product in retail stores, in the wearable category for example, at 120€ without taxes / 144 € with taxes, think about the margin that you could earn if you want to reach a new market and sell your product nationwide. Plan in order to be ready the day you wish to sell thousands of units per quarter through a retailer purchase order: the maximum rate is 45% (wearable category) in France so 66 € minimum margins per product.

Even if you start with sales only online with a marketplace, you should build your pricing on this rate in order to have a long-term vision and power of negotiation with distributors and retailers if you decide to sell your product in stores later. Always be ready for bigger opportunities!


More details about the landinFrance program.

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©2019 SAS So sample

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So sample

Le village créatif

10 rue de la censé

59650 Villeneuve d'ascq

 Contact : 

contact@so-sample.com

(+33)3.59.22.59.74

Monday to Friday

8h - 12h // 14h - 19h (Paris Time)