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Why It Works

 

Why do so many manufacturers turn to Independent

Reps to market their products?

The primary reason is simple economics: "comprehensive market coverage without increasing overhead and expenses."         

Advantages go on from here:

 

 

(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.

 

 

If you have any questions or would like additional information, please email us at info@outersales.com or call us at (818)342-4576.

 

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