Designer/Manufacturer Contract

What is the standard practice of designers charging the manufacturers for furniture and product design these days? Do designers still get the 3% royalty deal and where can one go on the web to get these forms? If this is no longer the practice, can someone shed some light on what most designers do when a manufacturer is interested in their designs.


from what I here from my furniture design peers 3-5% is the normal. You might be able to get an advancement on the royaltys or strike a deal for a one off payment to complely had over the rights or somewhere in the middle.

Not sure where you could find a set contract I guess you want to speak to someone like ACID or Briffa. Or as the company interested in your work/piece to create a contract and discuss the terms of it. Then take it to a solicitor to check it over.

What country are you in?

Thanks for your input. I’m in the States. If I ask for a one time payment, what type of calculation would I use to come up with that amount? How many designers out there do the royalties thing versus the one time payment deal?

If I choose to do the 3-5% agreement, how does that work exactly? Do famous designers like Karim Rashid use that type of contract too?

Do you have the email addresses of those two names you mentioned?

Thanks again.

Erm not to sure how you would calculate such a figure for a one off payment. Igues work out how much time you put in to it and muliply this by your hourly rate.

I’m not to sure of the ratio between designers getting payied off and those setting up a royalty deal.

I guess famous designers get paid to design to furniture and perhaps part of the deal is they get some royalty as well. I got offered a job one which paid nothing up front but I would get a percentage of the profits.

That another thing the percentage amount is sometimes of the manufactouring cost not the retail cost so if they make it for $10 and sell it for $100 you get $0.3-0.5…yippe

Briffa is


I think you need some more guidence fomr the more experienced peeps around here. Why dont you ask these questions to your mcfr? do you have a design? do you have any interest yet?

Hmm, something sounds wrong with that if you ask me. It sounds like there would be any number of accounting tricks to hide that profit. Such as, the manufacturing price that you mentioned.

Percentage of profit is also known as “monkey points”. Percentage should be based on something that can’t be gamed. Like wholesale price. Company raises wholesale price, you get more royalty money. They could have high wholesale prices and even raise prices and still never be profitable bc of their own inefficiencies. In effect, you would be penalized for their screw-ups. Not smart.

Designers need to watch contracts closely. The world is full of people waiting to turn your enthusiasm into money … for themselves.