Expanding Reach Through Wholesale
Many emerging fashion labels are looking to expand their reach and sales to grow their brand. While hiring a showroom to assist with wholesale sales support is one option, working with outside sales agents can often be a more flexible and cost-effective alternative.
What Outside Sales Agents Do
Outside sales agents—also known as sales reps—typically represent several lines and cover specific geographic territories, such as the East Coast, West Coast, or international markets. By partnering with agents who specialize in your category or region, brands can gain access to established buyer relationships and market insight without the overhead of a permanent showroom.
Commission and Compensation
Outside sales reps generally work on a commission basis, although some may require a monthly retainer plus commission. In fashion, commissions usually range from 7 to 15 percent of sales on average. These reps handle much of the legwork—sourcing leads, contacting potential buyers, presenting samples, and closing sales. If you already have a list of prospective buyers, your rep can use it to maximize your sales reach.
Choosing the Right Sales Representative
When selecting an outside sales representative, it’s essential to research which buyers they currently sell to and whether those accounts align with your target audience. Consider whether they’ve represented lines similar to yours at comparable price points and if they attend trade shows where your collection could be featured.
Sales Channels and Commission Structures
Some outside sales reps focus primarily on B2B (business-to-business) sales, setting up direct appointments with buyers to secure wholesale orders. Others may also sell B2C (business-to-consumer) at trunk shows, online events, or pop-up shops. For B2C, commission is generally based on retail price, while B2B commissions are based on wholesale.
Establishing Clear Agreements
Ensure that everything is clearly outlined in writing when hiring an outside sales rep. Define their duties, responsibilities, commission rates, and any additional expenses in a contract. It’s also important to specify whether the agreement is for a set term or an ongoing partnership.
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By Belinda Antwi for https://designcollectiveny.com/