Gift Rep Sandy

Posts Tagged ‘Manufacture’s representatives’

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!

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A Manufacturer’s Representative, also called manufacturer’s agent, manufacturer’s rep, sales representative, or sales rep – or more commonly, just “rep” – is a self-employed salesperson who contracts direct selling and marketing services to one or more related, but normally non-competitive, companies in a particular industry.

The job of a rep is basically to “represent” the manufacturer’s, distributor’s, or importer’s line of products to prospective buyers, who could be retailers, wholesalers, distributors, or service businesses, depending upon the industry and/or product line. As part of that service, they call on and present the client’s products in a positive light (as a way to solve the buyer’s needs), answer questions, offer materials and information, and ask for orders and re-orders in person, or by phone, fax, or email. Increasingly, web sites are a way to service wholesale buyers.

Sales reps sometimes just represent one company, where they might be paid a base plus commission. More often, however, independent reps serve multiple companies who share an interest in marketing to a category of buyers that the rep calls upon regularly. Reps are usually given a specific (and often exclusive) territory, so customers are not confused by multiple competing sales representatives, and to honor the hard work done by a good rep.

Sales reps exist that target virtually every size of gift retailer from small mom-and-pop stores to large “big box” retailers, including chains. All these reps want to show and sell the newest, most attractive or innovative products on the market (plus, of course, profitable standbys).  When hiring a rep, you save buyers significant time and expense by showing several lines during your visits, and always, they want to know “what is new”! (You WILL hear this question a lot!)

On the other side of the equation, sales reps probably qualify as the lowest cost option for manufacturers interesting in expanding sales regionally or nationally. Independent reps operate as a contract sales person, or in the case of rep “groups”, as a contract sales force, working on a strictly commission basis, minimizing overhead for a producer. Whereas an in-house sales force could cost a potential manufacturer $75,000 to $100,000 per person, with travel expenses – regardless of sales volume – an independent rep only gets a check when they produce sales for the manufacturer.  Since reps can be found in virtually every geographic area in the US, opportunities for a low cost national roll-out are endless, for those manufacturers who choose to grow in this fashion.

Sales reps purpose is to introduce, educate and take orders for product lines and receive a commission as compensation, rather than making your money on the price differential between buying and selling prices.

(For more information on opportunities and information on this industry, visit the Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2006-07 Edition, “Sales Representatives, Wholesale and Manufacturing”, on the Internet)

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