WHAT IS A MANUFACTURERS’ REPRESENTATIVE?
A Manufacturers’ Representative is a multi-line sales professional holding a portfolio of related but non-competitive product lines. They perform the same role of providing field sales and marketing services for the clients they represent. A one-stop-shop of goods and services to a well-established and ever-growing customer base, they use strong client relationships to maintain existing sales, while incorporating that same personal stage to introduce new products.
WHAT ARE THE ADVANTAGES OF USING A MANUFACTURERS’ REPRESENTATIVE?
While the advantages are many, two stand out and demand recognition
- LOWER COSTS: While these reps are your sales professionals in the territory, they operate solely on commission. There are no expenses, base salaries, or incentive programs to accommodate. Moreover, there is also the notable absence of additional channels, middlemen, and channel intermediaries that drive up costs. Briefly stated: There are no sales expenses until there is a sale.
- INCREASED EXPOSURE: The multi-line sales professional can afford to call on customers too small to be profitable for a single line. The new entry gets leveraged in the door and on the floor faster because the company’s representatives have already established a relationship with the customer, outperforming a single-line sales force, no matter how aggressive and proficient.
1. STABILITY The customer gains a stable relationship with someone who knows the big picture, the total corporate culture, market conditions and trends that come from someone with a long-term commitment to the territory. The average salesperson spends a mere 22 months in a given territory before being promoted or transferred, whereas the manufacturers’ representative is likely to spend decades establishing and nurturing relationships with clients.
2. EFFICIENCY The experience and overall corporate knowledge that comes from long-term relationships in the industry enables the manufacturers’ rep to know how to streamline the entire sales process, bridging the communications gap between departments while providing a one-stop-shop to the buyer for all their needs. All of this leads to more efficient sales calls
3. ADVISOR Manufacturer’s reps have adopted Consultative Selling, an approach that prioritizes relationships and open discussion to recognize and provide solutions to their customer’s needs. The knowledge and experience that fuels their efficiency also gives them the credibility to know and speak to the customer’s needs with the authority of a seasoned consultant and respected advisor.
4. ADVOCACY A manufacturers’ rep’s success is tied to his customers’ satisfaction. This sometimes requires the rep to advocate for his customer, securing exceptions to supplier policy and/or offering help with order strategy, through distribution or direct. All the corporate knowledge and experience in the world mean little if the rep cannot secure the products when the customer needs them.
UNDERSTANDING THE DIFFERENCE BETWEEN A REP AND DISTRIBUTOR
DISTRIBUTOR
- Sells anywhere
- Has many competing lines
- Assumes ownership, buys for resale
- Compensated by margin of sale price over cost
- Often handles several hundred lines
- Large firms, typically publicly traded
- Relies on rep for referrals, training, and engineering
- Maintain inventory
- Focus on selling what is in stock
- Add value through time place utility
MANUFACTURER’S REPRESENTATIVE
- Sells in a defined area
- Does not sell competing lines
- Never takes possession
- Compensated by sales commission
- Handles Multiple Lines
- Typically entrepreneurial
- Interface with distributors
- May warehouse (for a fee)
- Focused on customer
- Adds value through application engineering/product synergy/design – in
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