Has anyone dealt with licensing a design to a retail store?
I have been trying to sell a piece of furniture I designed and built to a large retail chain, and don’t know what I should expect for a licensing fee for them using my design (they will handle the manufacturing).
Is the fee based on a percentage of wholesale cost? Retail price? Or is it just a one time flat fee for the use of the design for a limited run?
If anyone has dealt with this before, please enlighten me.
Thanks.
Replies
Kind of maybe. "Or is it just a one time flat fee for the use of the design for a limited run? "
More then likely it will be a one time flat fee for the exclusive use forever is what they will offer. Depending on how many more good designs they think you have, will make a difference if you will get a better deal I suspect.
If you are able to get any real money from a truly original design, you should congratulate yourself. Be sure to cash the check quickly. And don't hold out too much hope for ongoing royalties.
In many, many cases, a manufacturer, or retailer, will say all the right things to get you to part with a picture or a drawing of your design. They will then have their internal design staff modify (slightly) something, so that "your" design is no longer the one they are using.
Then they make a few million pieces of furniture in a sweat shop somewhere in the third world, and bring it back in the hopes that we will buy "their" original design.
And if only one dimension is modified, and it is only modified by a silly little millimeter, it will truly be their design.
I want to thank you guys for the advice.
I am currently negotiating, and will update you when I come to an agreement (or it falls apart).
In many, many cases, a manufacturer, or retailer, will say all the right things to get you to part with a picture or a drawing of your design. They will then have their internal design staff modify (slightly) something, so that "your" design is no longer the one they are using.
That's true. All the big furniture manufactorers have been stealing and slightly modifying each other's designs for decades. The three furniture factories that I've worked at (years ago) didn't have any internal design staff that I was ever aware of. It was pretty much an open secret that they'd just go to tradeshows for design ideas on a new line.
Regards,
Kevin
Designers have lots of options when it comes to payment.....flat fees, royalties, retainers, etc, or a combination of those. I know one company in my region that keeps a High Point designer on retainer, even though the principal of the company is a designer....all they get from the High Point guy is a sketch or a picture, and a price point, and they do the engineering.
Many manufacturers do not have a design staff, as noted, but they're not all stealing ideas....many of them contract that part of the process out to professionals, and there are many individuals and firms out there making good money providing that service. It's a common sense thing if you don't have enough design work to justify staffing a department, or if you want to be able to access specialists in different styles. Or they may choose to license a design from a big name designer with a track record.....lots of Danish furniture pieces for example have been in continuous production for fifty years or more. To imply that a designer can't expect to get paid for their work is wrong, in my opinion.....many do, but they may not be very visible to people outside the trade. Same thing with the contract furniture industry, the folks that manufacture a lot of these designs.....the ones I know stay very busy, the work comes to them, and they have a very low profile outside of those who need to know.
here's a link to one plae you can do some research (http://www.asfd.com/default.asp) .....there is a list of design schools there, maybe a prof near you can give you some insight. Or you can follow up on some of the names on the site....I'm sure you will learn a few things. Another suggestion is to look into High Point, North Carolina, and what it's all about....for sure, there is a cluster of people making a living from designing furniture there. Good luck.cabinetmaker/college woodworking instructor. Cape Breton, N.S
I know it has been a while since I last contributed to this discussion.
I would like to thank you guys again for the input and tell you all about what happened. I did sign a deal with a major national retailer after much negotiation. I have learned a lot from this process.
The deal boils down to this: the retailer will have a scandanavian manufacturer take my design and turn it into a RTA (Ready to Assemble) product for sale. I will assist them in this conversion, but who knows how close it will be to the original. For this, they will pay me a percentage (Let's just say it is less than 5%) of the factory cost for the item (NOT the retail selling price). I was able to get a small advance on future royalties to cover my expenses, such as the attorney I hired to review the contract. The contract is exclusive for 2 years, and I retained the right to build a limited number of my original design.
What it comes down to is that I want to see my design in production, even though I will not make much money (I am guessing $500-$1000 in the first production run). I have not won the lottery, and I am not quitting my job. If anything, I will be able to buy a new German power tool or two for my workshop.
Dave
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