P23-EDU
Channel Tool 09
Showroom
Cost
Cost
The complete annual cost of running your line through a wholesale showroom. Every layer: retainer, commission, catalog printing, sampling for showroom and agents and retailers, trade show fees and travel, existing account territory transfer, Faire overlap, and agency own-buy discount.
Based on industry practice at showrooms including Keena, Aesthetic Movement, Karen Alweil Studio and comparable national gift and lifestyle agencies.
1
Contract Terms
Varies by showroom tier and territory. Typically $500–$4,000/mo.
Standard gift/lifestyle: 15–20%. Some showrooms vary by order size.
Some showrooms charge a separate annual listing or digital directory fee.
Exclusive = showroom covers all accounts in territory. Non-exclusive = you can carry other reps or sell direct alongside.
Critical negotiating point. "Excluded" is your strongest position.
2
Sampling — Showroom, Agents & Retailers
Three sample populations
Permanent display samples for the showroom itself. Working samples for road agents/sub-reps who cover accounts in the territory. Ad-hoc sample requests from retailer buyers before committing to an order. Each has a different cost structure.
Showroom Display Samples
Your landed cost per unit.
Seasonal lines: 6 months. Core lines: 12.
Road Agent / Sub-Rep Samples
Sub-reps/agents who work the territory for the showroom.
Agents typically carry a subset of the full line.
Typically aligned to seasonal buys. 2×/year is standard.
Retailer Sample Requests
Ad-hoc requests from buyer accounts considering opening.
Your landed cost of the item sampled.
3
Catalog & Printed Materials
One print run covers three uses
The catalog print run covers the showroom, trade show booth distribution, and agent packs. Reprinted every season. 2,000 copies minimum is standard for a showroom with trade show presence.
2,000 copies, quality stock. Varies by page count and printer.
Seasonal lines: 2. Core collections: 1.
If you do it in-house, enter 0 or your time cost.
Per season.
4
Trade Shows
Two separate cost models
When the showroom exhibits on your behalf (permanent markets, joint booths), they charge a negotiated flat fee per show. When you have your own booth, you pay per linear foot. Both are real costs. Brand travel is additional and often forgotten.
Showroom-Attended Shows (flat fee per show)
e.g. Las Vegas Market, Atlanta, Shoppe Object = 3
Negotiated flat fee. Range: $500–$2,500 depending on showroom and show.
Brand's Own Booth (linear feet)
Standard inline: 10ft. Corner: 10–20ft.
Shoppe Object / NY NOW: $180–$350/lin ft depending on location.
Prorated from total display investment across expected shows.
Brand Travel to Trade Shows
Brand attends trade shows — add travel costs
Market weeks: NY $350–600, Vegas $200–400, Atlanta $180–350.
Per day total.
5
Existing Account Territory Transfer
Key negotiating point
Showrooms typically want commission on every account in the territory — including accounts you opened before they existed. Your position: existing accounts are house accounts, commission rate is 0%. Their position: full rate from day one. Model all three scenarios below to understand the annual cost of each concession.
0% = house accounts (your goal). Enter what you actually agreed to.
Annual Cost — Three Scenarios
Your Goal
0% / House
0% / House
—
annual cost
Compromise
Half Rate
Half Rate
—
annual cost
Their Ask
Full Rate
Full Rate
—
annual cost
6
Agency Own-Buy / Below-Minimum Orders
Common with top gift showrooms
Some showrooms place their own purchase orders to seed inventory with key accounts — often below your standard MOQ and with a discount negotiated at signing. This is both a cost (discount) and a benefit (guaranteed opening orders). Model it here.
Showroom places own orders — model own-buy cost
Wholesale value of orders showroom places direct.
Typical negotiated range: 5–15% off wholesale.
Your standard MOQ for reference only. Enter 0 if no exception is granted.
7
Expected Performance
Wholesale value of orders the showroom writes per month on your behalf.
Commission-only rep. No retainer, no catalog, no sample obligation.
Total Annual Showroom Cost
—
enter inputs to calculate
Effective
Cost Rate
Cost Rate
—
Annual
Net Revenue
Net Revenue
—
Breakeven
Orders/Mo
Orders/Mo
—
Annual Cost Waterfall
Retainer (12 months)—
Commission on orders—
Catalog (print + design + ship)—
Showroom samples—
Agent samples—
Retailer sample requests—
Showroom trade shows—
Own booth (linear ft)—
Travel to trade shows—
Existing account commission—
Own-buy discount cost—
Faire territory commission—
Open line / listing fee—
Total Annual Cost—
Gross orders written (annual)—
Less: all showroom costs—
Net Revenue (after showroom)—
Channel Comparison (annual net revenue)
Showroom (all costs)—
Rep-only (commission, no overhead)—
Direct (no rep, no showroom)—
Showroom premium vs rep