(1)
Availability of capital:
Since manufacturers don't bear the expense of developing, maintaining, or
expanding a direct sales force, capital is freed up for other business
activities.
(2)
Cost-effective marketing:
The expense of selecting and training representatives is nominal. Your sales
costs are predictable since reps are paid "only" for results, Overhead expenses
are the representative's concern--not yours. Sales Labor Costs are eliminated.
(3)
Faster coverage and deeper penetration:
Representatives offer immediate coverage and penetration into a given territory
through established contacts with their customer base. 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 in-house or
train existing representatives.
(4)
Synergy of multiple line selling:
Independent Sales Representatives handle several compatible, but non-competing
lines. The sale of one product triggers the sale of others. This increases
selling efficiency, and spreads the cost per sales call over a larger product
base.
(5)
Stable customer relations:
Independent Sales Agents take professional pride in their territories. With many
years of experience as a manufacturer representative, they have been able to
build a customer base.
(6)
A valuable source of market feedback:
Since manufacturer reps handle a wide variety of different product lines, they
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.
(7)
An available reservoir of competent sales talent:
Qualified sales personnel are not always easy to find and keep. Manufacturer
representatives are different as they are entrepreneurial and committed to their
territories.
(8)
Credibility:
With a long history of experience, manufacturer representatives have established
business and social roots in their territories since they have worked them for
years. They have gained a high level of credibility with their customers and in
their communities.