| Why do so many
manufacturers turn to independent representation to market their
products? The decision starts with simple economics,
comprehensive market coverage without significant dollar
investment. But the advantages go on from there:
Availability of capital
Since you don't bear the expense of building, maintaining, or
expanding a direct sales force, capital is freed up for other
business activities.
Cost-effective marketing
The expense of selecting and training representatives is
nominal. And, since they are paid only for results, your sales
costs are predictable. Overhead expenses are the rep's concern,
not yours.
Faster coverage and deeper penetration
Reps can offer immediate coverage and penetration into a given
territory through established contacts with their customers.
This can be particularly attractive to manufacturers wanting to
introduce their products through an entirely new channel,
without having to develop a new sales force or train an existing
one.
The synergy of multiple line selling
Because reps handle several compatible but non-competing lines,
the sale of one product often triggers the sale of others. This
creates a 1 + 1 = 3 effect, increases selling efficiency, and
spreads the cost per sales call over a larger product base.
Stable customer relations
Manufacturers' representatives take professional pride in their
territories. They build their customer base with meticulous
care. They group their product mix with their customer mix. Reps
are the mainstay of the markets they serve. The better they are,
the longer they stay. Factory sales people come and go. The
better they are, the quicker they change territory.
Built-in regional sales management
Many rep organizations are fully capable of serving as your
regional sales managers and offices. Added services offered by
many reps include: intelligence gathering, forecasting, credit
reporting, product detailing, application engineering, and
warehousing.
A valuable source of market feedback
Since they handle a number of different product lines,
established reps tend to have a broader range of customers and
can often sense overall market changes and opportunities earlier
and more accurately than sales personnel who concentrate solely
on their own company's product line.
An available reservoir of competent sales talent
Qualified sales personnel are not always easy to find and keep.
Reps are entrepreneurial and committed to their territories.
They're here today and here tomorrow. The availability of reps
in a key area can be a potent advantage in the manufacturer's
favor.
Credibility
Because well-established rep firms have business and social
roots in their territories, and have worked them for years, they
have credibility with customers. Reps strive continually to
cultivate local acceptance, a factor that can help break down
customer resistance to any new line they take on.
Want to know more?
Check out
our
Frequently Asked Questions.
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