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Manufacturers' Representatives


Manufacturers' representatives are a category of sales representatives who usually work independently or by contract. Where a sales representative is directly employed by a manufacturer to market or demonstrate the company's products, a manufacturers' representative is a third party who offers his or her services to the company by commission. Manufacturers' representatives are sometimes known as manufacturers' agents in order to distinguish them from sales representatives; all of these terms are frequently used synonymously, which can create confusion.

Contracting Manufacturers' Representatives

A manufacturers' representative is extremely versatile and time-efficient, having the potential to sell many different products each time a pitch is made to a customer. Representatives selling an excessive number of lines may spread themselves too thin and overwhelm the customer with options, so most deal with no more than ten product lines each, as a rough industry standard.

Manufacturers' representatives usually operate under the terms of a pre-arranged contract. Most work on commission, acquiring their profits in proportion to the products they are able to sell. Their contract usually specifies the precise rate of commission, as well as the territory in which the representative will operate. Language is often inserted in the contract to provide for an easy withdrawal from the associations in case of dissatisfaction by either party, frequently within 30 days. In the case of those representatives who are introducing sales into a new territory (startups), the representative usually insists upon a longer period to allow some leeway for the natural delays of launching a new product line. This is to ensure that he or she is not terminated just before sales momentum begins to build.

Skills of Manufacturers' Representatives

All representatives, whether self-employed or otherwise, make sales through a combination of cold calling and extensive travel. A good sales representative is one who can sell the virtues of his particular product in a marketplace that is almost certainly flooded with other near-identical products. He or she can be consistently proactive by seeking leads in trade publications through a network of contacts and attending conferences and conventions. Leads must be tenaciously followed, with negotiations often protracted over a period of weeks or months as the representative demonstrates the superiority of his product through multimedia presentations and extensive technical question-and-answer sessions. In addition to direct selling, representatives often consult with retailers to determine marketing strategies (advertising, promotions, etc.), and sometimes compile reports and statistics to gauge the effectiveness of a product's sales. As a result of the versatility and technical knowledge required in the modern marketplace, most representatives today are expected to be well-educated, possessing at least a bachelor's degree.


By Matthew Ingalls           

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