Gift Rep Sandy

Archive for the ‘Finding Product Lines’ Category

Many sales reps take on any line they can find (something I did, when I first started, since I didn’t know any better).

A better choice is to stay focused somewhere near your product specialization, niche market, and what your geographic territory resonates with. Some lines just won’t sell in certain regions or to certain retail categories. If you are selling mostly cowboy jewelry and souvenirs, you will typically have a difficult time selling children’s personal care products to the same buyers.  Lots of lines will not fit in with your areas of concentration. If you decide to sell them anyway, you may appear more like a flea market, and gift buyers will wonder just what do you sell! You will lack what is called “top of the mind” awareness, when people are looking for products in your area of strength (IF you have one… make sure you do)!

A good mix of 15-20 lines, depending on the size of each line, is probably a good place to start.  Too many lines (e.g. 40 or 50) will be difficult to manage, and hard for you to do a good job with in the beginning. On the other side of the coin, too few lines (under 10) may be a discouragement to buyers who is looking for the value in time spent with you. When I got started, and proudly went through my handful of lines, the first question nearly every retailer asked was, “Is that all you have?”

Since buyers are such busy people, they like to work with sales rep having a good mix of products they can choose from.  I only represented six lines when I started. And yes, buyers often did not take me completely seriously with such a small offering. But we all start somewhere! And when I kept coming back with more lines, I was IN!  So start slowly, focus on quality lines, and defer the skepticism… you will get some at first. Just tell the truth.

Last post we talked about places and ways to find product lines.  We continue the discussion ….

Internet searches are a very effective way to find specific type of products you would like to represent.  Start your search by entering a keyword to describe the product you are looking for.  For example, “soy candles” or “soy candle manufacturer”. If you are looking for regional products, you might also add the name of your state to the search string, e.g. “soy candle manufacturer Idaho”, in my case.

Once you locate the website, you see the products the company offers and if you are still interested, contact information for the business owner.  A simple call or email to the sales manager or owner usually is all it takes to see if they are interested in sales representation in your defined sales territory.

Trade magazines such as Country Business often feature multiple gift companies, some with hundreds of different products for you to consider.  In the back of these magazines, you can find a list of the different advertisers and with their contact information.  Also, many trade magazines have a ‘Classified Ads’ section where companies often advertise for reps.  These ads are normally very specific about what they are looking for and what territory is available.

Other sales rep companies are often looking for sub-reps or co-reps to service their clients in other areas or states where they do not operate.

If you are a sub-rep, you are a subcontractor of another sales rep, under contract to sell that rep’s customer lines in your territory, because THEY own the exclusive rights in your region. For some reps, this is the easiest and fastest way to get into the rep business, as all the framework of your business has already been set up for you.  You will get a smaller commission (typically about 70% of the full commission, or around 10% of the wholesale price). And you typically submit orders through the home office of the rep “group”. However, you get product catalogs, order forms, policies and procedures, and commission rates, typically in one nice, neat little package. Your time is spent on developing your territory and expanding the customer base for the new clients, instead of recruiting.  Although this option does not give you as much freedom as independent repping, you benefit from a big wad of proven lines to sell, and a network, via the “mother” rep group company, to assist you in getting started.

Networking with other reps can also get you lines on a “no strings attached” informal or traditional referral basis. Rep companies often experience “full” periods in terms of the number or nature of lines they represent. If you are a good girl or boy, and develop a trust-based relationship with those other reps, they may send you leads for companies that approach them, but are not suitable for them to take on, for whatever reason.

Wholesale hub “matchmakers” and associations are available online, to help put reps and manufacturers together.  These organizations typically list a database of companies looking for representation (along with reps looking for lines, which you may view for a small monthly cost or annual membership fee.

The United Association of Manufacturers’ Representatives, or UAMR, is probably the largest member organization for reps to the gift industry. Fees for sales rep memberships are minimal, but the benefits are quite impressive.  The short time I was a member, I actually received more referrals than I could handle, giving me the opportunity to pick and choose which ones to pursue. And over the years, I repped for several companies I found through the UAMR. I finally let my membership go, BECAUSE I WAS GETTING WAY TOO MANY REFERRALS!

When you are a newbie looking for lines (something you will not need to do very often, once you are established with a good reputation, since vendors will then start seeking YOU out!), some good places to start are listed below. Increasingly, the internet is the place to go, but there are several other tried and true possibilities:

Region gift trade shows are specifically organized as marketplaces where retailers (buyers) can find new lines to inventory from exhibiting producers, importers, reps, wholesalers, and distributors. If you can get in, these are also one of the best places to solicit manufacturers and let them know you are available to rep their line.

Now, I mentioned “if you can get in” to the shows… gift trade shows are not open to the general public. And to gain access, you must either be an exhibitor (and shell out the big bucks for a booth) or a buyer — and are able show some proof of your status as a buyer of wholesale gift industry products.

As a rep, you are not a “buyer”, so due to potential competitive espionage issues (stealing lines, for example) sales reps often are not allowed access into these shows. So while your intentions are pure, you may need to be a little sneaky to get into a particular show. Once you get into one show, it’s easier to qualify for attendance at other shows, if you follow the rules, which may be different for each show.

Gift marts or showrooms are large, multi-story buildings in major urban areas of the United States, housing hundreds of “showrooms” featuring gift lines. Giftwares are showcased at these marts year-round, although the doors are often open on an odd schedule (for example, on Monday, Tuesday and Wednesday of each week).  Most rooms are run by larger sales rep companies that cover several states. However, some sole proprietor reps – as well as distributors, importers, cooperatives, and others – often pay for annual or monthly exhibit space too.

Unless you are looking for work as a local “sub-rep” with one of the rep organizations showcasing in the mart, this is not necessarily a great place to find clients directly. A perfectly ethical way (although the showroom management may not agree) to take advantage of this method of client recruitment, is to visit showrooms well outside your target geographic area, and find lines you resonate with. Take brochures for the lines you are interested in repping.  You can then contact the prospective client companies later, to see if they are represented in your area.

Once again, gift marts are not open to the public.  Check which days the rooms are open, and make arrangements for passage into these marts ahead of time, before traveling there and finding you cannot get in. Generally, marts require the same type of proof as gift trade shows, to verify your status as a buyer. Often, if you are authorized to attend a gift trade show in the same town or region, you get automatic entry into the local gift mart by flashing your trade show badge.

Local gift manufacturers (including your existing clients) are often a great source for leads on sales representation. Besides your client list, check out the yellow pages, local chambers of commerce, and economic development organizations for companies in the gift categories you are seeking. Once you find one producer, often they will know lots of others, and often will refer you, even if they are not interested in your services – or even if they are! Regardless, talk with them about sales representation.  Chances are many of them never thought about having an outside sales rep, and may entertain the possibility once you contact them.

Retailers are an excellent source of information regarding manufacturers who may be seeking good reps.  Go to gift stores or souvenir shops that are typical of the type of store you wish to call on, and ask to talk to the owner and/or manager. Tell them you are looking for information and help, and are not there to sell something. They will know which gift companies are selling direct to the store, and once you break the ice, may suggest lines without representation that might benefit from a sales rep.

Gift store inventory! Products lining gift store shelves almost always include contain contact information on the labeling or packaging.  Every time you visit a gift store, regardless of where, check out the products they carry.  If you find a product you would like to represent, often a quick call will put you in touch with the owner or sales manager of the company.

Craft shows often attract producers ready to take their production to the next level, perhaps offering a pricing schedule that works. For some of these shows the exhibitors are more geared to manufacturing than handicrafting to start with, which is what you want.  When attending craft shows, look for lines that are unique in design, in a major sales category, where the owner is someone you feel you can work with, and who is professional with their business presentation.

Here are some traits you need to consider when approaching a company to sell their products:

• Product compatibility: Does the line fit well with your product area specialty, niche markets, and/or geographic emphasis?
• Personality compatibility: Regardless of the quality or suitability of the line, how well you like and communicate with your key contact(s) at the client company, will make or break a relationship — no matter how well their products might otherwise sell.  And if you don’t like the person(s) you are going to work with, probably the relationship will affect your attitude and sales volume. You do neither yourself nor the client company a favor, to take on a line when early contacts or feelings about the client company are substantially negative.
• Professionalism and reliability: How your vendor treats you and your retailer customers will impact EVERY area of your relationship with them. Disastrous situations can arise if you take orders for a new vendor – only to find out they cannot deliver the products, or that they pay you in a haphazard manner.
• Good recordkeeping: Find out what kind of bookkeeping system they have in place, and whether they admit to experiencing problems managing collections or paying reps on time – if they will share this information. And of course, how they keep track of which sales belong to you (and/or other reps) is important to know!
• Honest and supportive approach: You want honest clients, who will tell you the truth and work toward solutions when problems arise, rather than manipulating you by providing information to pacify you. Sometimes you just don’t know until you are further into the relationship, but watch for the signs.
• Appreciate the need for an exclusive territory: If a producer hems and haws about giving you an exclusive territory, they are more likely to become a problem client. Often they will try and compete with you, to try and screw you out of your commissions after you establish an account. Sometimes, a newbie client will just not understand that overlapping sales efforts are counterproductive. But if your explanations do not suffice, MOVE ON, no matter how much you otherwise enjoy the line.
• Experience working with reps: If a producer currently uses reps in other geographic regions, try to get permission to talk to them and get feedback on their track record with other reps. If the client is new to using reps – a common situation – you are involved in an education process, whether you like it or not. Such a situation is not all bad, since you will not need to break bad habits. BUT newbies often come with unreasonable expectations and fuzzy ideas of how to work with a rep, which are sometimes hard to change, and can cost you money and time.

Developing a client relationship as an independent, “manufacturers’” sales representative, is a business partnership, although somewhat informal compared to many legal relationships. You are a contracted, commission-only, sales force to your vendors. And they are a supplier of salable products for you to sell on commission. They collect the money, and pay you your well-earned commissions at least monthly – IF they are honest and value your contribution to their success.

With that in mind, you need to analyze not just their product line, but also their company as a whole, including key personnel, before you make a final decision to rep their products.

Consider vendors relationships as carefully as you would choose ANY type of business partner.  You will work closely with the owners, managers, and/or employees in each of the companies you represent.  Take a little time to learn about the company, and the history, and develop some level of rapport with the owners (and/or employees) within these enterprises.  Information you glean early on is a great help in deciding whether to take on a line. And also sets the stage for quality of the communications over the course of the business relationship, during your coming years of service.

Be aware also, that often the “smoothest” and warmest potential vendors are just out to scam you, or use you to their advantage, never intending to live up to their end of the bargain. Many producers see independent sales reps as someone to help market their products, and gain more customers (which is true), but without paying you your due. This will be more common that outright scam artists that never intend to pay you a single commission.

I don’t want to give you a bad attitude going in, but this IS a professional relationship, and you are better off in the long run requiring professionalism from your partners in this business. If a vendor has trouble giving you an exclusive territory, or paying you a full 15% or more, or  paying commissions on clients you bring to them even when they order direct, you are selling yourself short, and allowing them to make money on your elbow grease.