Finding Sales Representatives to Sell Your Products

Finding Sales Representatives
To Sell Your Products

Running a business takes time and energy. If you plan to grow, it makes sense to hire other companies to do some of the work. One suggestion we often make is to find good independent sales representatives to sell your product for you. Even if you are a super salesperson, using independent sales reps can extend your reach so that many more accounts can be developed. They may be faster at making the sale, as well, because they already have existing accounts to which they can sell your products.

Sales representatives focus on one specific line of business, such as women's accessories, and sell items from many producers. They can sell from show rooms where buyers can drop in during business hours or make appointments. They also attend and exhibit products at trade shows or by directly calling on accounts. Your sales representative should carry a product line that fits with your products, not one who has directly competing items. Typical commission rates that you will pay them vary by industry, but are usually 10 - 20% of sales. You may also have to pay display fees for showroom or space at trade shows. Do some comparison of rates as well as reps so that you can negotiate for fair rates on both commission and display of your products.

Buyers appreciate working with great sales representatives because they offer a number of products and "know the ropes" when it comes to making and servicing sales. The only companies that will not happily work with sales reps are big box stores and discount mega retailers such as Wal-Mart, which prefer to deal directly with manufacturers so that they can cut sales reps commissions out of the deal's costs.

Sales representatives work from permanent showrooms and "road reps" go on the road to meet with their accounts and to develop new sales opportunities. Road reps either set scheduled appointments with their accounts or the buyers arrange for an appointment themselves. The permanent showrooms are often clustered in one geographic area in a city or region to make it easy for buyers to compare products without having to travel a long way. Often, they are all in the same building, such as a Merchandise Mart.

They will be interested in your product if it will sell with the rest of their lines. They will also want good quality product and prompt service from your business that will meet their buyers needs.

Here are a number of ways to find good sales representatives for your product:

Go to trade shows and observe the representatives in action. There are often bulletin boards where reps who are looking to carry new lines are listed. Who do you see that is effective? Watch their pitch. How does their booth look? Is it adequately staffed? How do they respond to requests? Do they sell actively, providing add-on sales of complementary products from their line? Ask for information that they will need to check on and get back to you. See how promptly they respond, how well you are treated and whether the information was what you had requested.
Read trade ads - you can even place an ad for the type of rep you want.
Go to a trade center that handles your industry. Find showrooms that handle products that will work with yours and casually observe the sales reps at work. Pick up contact information when you like what you see and continue to work the center. Later, call each sales rep or showroom that you would like to consider for an appointment to show your product to them. Tell them that you have seen their showroom and that your line should fit well with what they already carry. Be prepared and polite when you get to the appointment. If a customer shows up, they will want to take time to sell so be prepared to wait patiently without participating in the transaction.
Ask other manufacturers that you know for information about good reps.
My favorite is to talk to retailers who could carry your products. Find out which representatives that handle the product lines they buy are best. We call those salespeople the "Cadillac reps". Typically, you will find that the best 20% of the representatives sell 80% of the products. If you have the best reps for your line, your sales potential is much higher.

Before you sign any contracts, check out the representative. Ask them for referrals from other manufacturers and buyers; then follow up. If you have access to Lexis-Nexis, you may want to see if they are, or have been, involved in legal matters with their suppliers and clients. Do not take legal action as a bad sign, by itself. Examine the information and use it when considering the business potential of the relationship.

Finding a good representative can really boost your business. Do not settle for just anyone, find a group or individual who you will be proud to have represent your company. This is an important, ongoing business relationship and a key to your business' growth.

-Cynthia Nemeth-Johannes