Supplying to the retailer

Ask Me Anything Q&A Trueprofitaprilama

Topic summary

A user is negotiating margin terms with a retail concept store for a branded corner display, where they will handle product shipping themselves.

Key clarification needed:

  • Another participant questions whether this involves direct-to-customer fulfillment or in-store sales, and whether an online catalog is part of the arrangement.

Recommended approach:

  • Negotiate based on revenue share rather than profit margins to maintain stronger positioning—avoid disclosing actual profit figures.
  • Industry benchmarks vary widely: furniture retail typically demands ~30% revenue share just for shelf space.
  • Consider a hybrid model: 10–15% revenue commission plus a flat monthly fee (acting as “rent” for the retail space), which balances guaranteed income for the retailer while incentivizing active selling.

Status: Discussion remains open, awaiting clarification on the exact business model and fulfillment structure.

Summarized with AI on October 29. AI used: claude-sonnet-4-5-20250929.
1

I’m looking to have a branded corner at the retail concept store that sells brands from my field. Currently negotiating the margins. What are the fair margins I can offer for a retail space like that given that I will take care of the shipping?

2

You describe this as a branded a retail space, yet you will be shipping the products?
Will you be doing fulfillment and shipping for orders you receive via online/telephone, for products supplied from other brands and/or other manufacturers?

Are you also creating an online web store/catalog where people can shop, click, purchase and then have the third party products fulfilled and shipped from you?

3

Hey @AlinaF , tough question—but a great one, thanks for asking!

If I understood it right, you’re working with a reseller who displays your products in their retail store, and once a customer places an order, the reseller sends you the details so you can ship directly to the customer, right?

If that’s the case, the exact arrangement can vary a lot depending on your industry. One common example I’ve seen is in furniture retail—retailers there often ask for at least a 30% revenue share (not profit margin) just to have your product displayed in-store.

For other industries, the commission might be much lower—but here are a few tips from my experience:

  • Negotiate based on revenue, not profit – Avoid disclosing your profit margin. Once a partner knows your net profit, you’re in a weaker position during negotiations.

  • Try a hybrid model – If it’s a reputable retailer with decent foot traffic, offer a mix: something like a 10–15% revenue share plus a flat monthly fee. That flat fee acts like “rent” for shelf space, while the commission keeps them motivated to sell your products.

Hope that gives you a bit of a starting point - And wishing you all the best!