Contract furn. royalties

I am an independent designer working with a contract furniture manufacturer and am in the process of negotiating a royalty agreement for my design. Does anyone have experience in negotiating in the contract furn. industry?

Is 3% of Net sales acceptable, or should push for a higher %? Estimated 1st year sales will be approx. $200,000 and will hopefully grow.

Also, The mfr. is funding the production of prototypes, but not paying me for my labor at this point. I am considering asking for an advance on royalties for my design/development related labor and physical labor/project managment (prototype construction). The design still requires considerable refinement before being ready for production. If necessary, I may also be involved in the creation of production dwgs., engineering, and sourcing of vendors/materials. I feel I deserve compensation outside of an advance on royalties for this type of labor. Are there any standards for this situation? What are my obligations in this situation and what is above and beyond a designers typical involvement.

Thank you.

Thanks for the reply. There has been considerable development work completed Pre-contract negotiations both solo and in conjunction with the manufacturer. There still remains consdierable design/development work in which i will be very involved.

Personally I get 3% of the wholesale price straight from the manufacture in Asia. It all depends just like the other person said… but from research and from those I know… 3% of the wholesale or net is pretty standard.

Good luck!