I am about to start an online boutique and I am not sure how to go about charging the product owners. They supply all the products for the boutique and in return I market and provide the service. But I have no clue how to go about charging them and putting this into writing for the agreement. What I would like is to pay them the price they wanted for the product and keep the profits for myself, thus its a sale price - profits = cost price formula. They will of course have added their own profit they wanted to my cost price. The only example I have been able to get from the web is this 75% of Net Receipts per each completed and paid for Sale. So how do I write my proposed payment out for the agreement form? If my cost price is 100% and sales price is 250%.... Thanks in advance
You can charge them a fee (a percentage or a fixed amount) on each and every sale. Take a look at eBay or Amazon for example. You can also charge them other fees (i.e. set up fees, promotional fees...etc). Putting this into writing for the agreement is not easy unless you are a lawyer. I would suggest you seek professional advice. I know it's expensive, but it's better to be protected and well informed from the start.