Am I being fair (business related)

ECS · Oct 9, 2007

ok, curious to what people thing about this, wondering if I am being fair, too fair or not fair.

I have a "business", I sell this item for 100 dollars. It cost me 23 dollars, so I make 77 dollars in profit for each sell. I have 1 person in particular do alot of selling for me. I give him 20 dollars for each sale. He is in charge of finding the interest, delivering item to said person, getting money and then paying me.

Am I paying him too well, not enough or just right. Let me also add, that 9 out of 10 times, when getting money and delivering items it is somewhere he was going to be anyways.

What does everyone think?

viking611 · Oct 9, 2007

depends on what you are selling...you are eating a lot of profit by paying him 20....unless of course this is a bag of weed, then i think it's okay.

ECS · Oct 9, 2007

Let me also add that I sell the same thing for 60-70 bucks, he asked to sell it for 100 and make the 20 bucks....

fhmesq44 · Oct 9, 2007

is he selling or is he delivering, big difference.

fhmesq44 · Oct 9, 2007

ECS said:
Let me also add that I sell the same thing for 60-70 bucks, he asked to sell it for 100 and make the 20 bucks....

then I guess you aren't really paying him $20, he is an industrious young man making some money on his own.

glenrobinson · Oct 9, 2007

He is getting just about right. If he is doing the leg work, finding the client, distributing said item, collecting for said item. And for being the salesman and delivery man on all ends...he getting a third of your profit. Sounds about right to me.

ECS · Oct 9, 2007

Which is why i was asking, if anything I thought I might be low balling him, he gets the orders, I get the item and give it too him, he takes it to said person, gets the cash and then pays me.

glenrobinson · Oct 9, 2007

As long as he doesn't bitch. I would keep the same arrangement but a $5 bump would not be unreasonable in my opinion

AdamSelene · Oct 9, 2007

ECS said:
Let me also add that I sell the same thing for 60-70 bucks, he asked to sell it for 100 and make the 20 bucks....

If you're selling the same thing for $60-70, why would you charge your "reseller" $80? Ought to give him your wholesale price, no more than the least you charge ($60).

But if he's doing well selling for $100, perhaps you should increase your retail prices?

thegambler711 · Oct 9, 2007

Is there any risks for him associated with delivering your product?

ECS · Oct 9, 2007

Well he offered, not I. Thus far the majority of people I sell too are either people I know, people that know people, people that works with someone, ect....

Although I have sold at least 30-40 items on my own, so I do think maybe a price bump is due. 75 might be a nice fair price....

ECS · Oct 9, 2007

thegambler711 said:
Is there any risks for him associated with delivering your product?

I would venture to say no, although it might not be the most ethical thing in the world, but that is up for debate.

WVU · Oct 9, 2007

is it cryppy or regs?

xpanda · Oct 9, 2007

Is the guy complaining? If he's not, then he probably feels the money is fair. So long as HE thinks it's fair, then it's all good. If he doesn't then you need to negotiate.

Timetopay · Oct 9, 2007

20 percent on a product for a good salesman if fine.

Dont be so greedy.

You need to find 10 more of him and think bigger

ECS · Oct 9, 2007

I am with you time, I have one so far (my wife, LOL). Would love to add more, of course the whole process is kind of bogging me down just doing it myself/wife/and this guy as a very small job (already have 2 jobs). Of course the funny thing is I can make about the same I do at my main job in a week with good sales.......

WVU · Oct 9, 2007

fess up. what are you selling. Maybe we want to buy 1000 of em

Timetopay · Oct 9, 2007

ECS said:
I am with you time, I have one so far (my wife, LOL). Would love to add more, of course the whole process is kind of bogging me down just doing it myself/wife/and this guy as a very small job (already have 2 jobs). Of course the funny thing is I can make about the same I do at my main job in a week with good sales.......

Since you are being kind of cryptic on what it is and what you do.

I will say this. If you have a product that you can mark up from 20 to 100 and someone can sell it you may have a winner. You may want to give it a go and forget one of those other jobs.

Of course I dont know what your situation is or anything but if you dont like your main job dont build it into your main career.

Timetopay · Oct 9, 2007

WVU said:
fess up. what are you selling. Maybe we want to buy 1000 of em

How the hell you get that avatar back. Another Mod gone bad huh?

:WTF:

shdw01 · Oct 9, 2007

ECS said:
I am with you time, I have one so far (my wife, LOL). Would love to add more, of course the whole process is kind of bogging me down just doing it myself/wife/and this guy as a very small job (already have 2 jobs). Of course the funny thing is I can make about the same I do at my main job in a week with good sales.......

I already either want to buy one of these myself, sell these full time, or report you to the police.....

TELL US!!!!

Am I being fair (business related)

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