Representative manufacturers (rep) , also known as independent sales representatives or sales agents, are individuals, sales agents or companies that sell manufactured products to wholesale and retail customers.
When a manufacturer hires a rep producer, this usually means that contracts are signed between the two companies, which empowers representatives to sell, or solicits sales for, manufactured products as agents in designated areas. The product is usually ordered directly from the manufacturer, which then pays the sales commission to the rep manufacturer. The commission rate varies according to market and product type. It can be anything from 1% to 50%, although the more common commission rate is 10% to 25% for low-cost products or consumers and 5% to 10% for industrial or high-cost products.
International manufacturers' representatives may be responsible for, in addition to sales solicitation, handling of supplies, dealing with tariffs, and complying with government regulations.
Video Manufacturers' representative
When is the manufacturer manufacturer used?
The manufacturer's representative is the most widely used agent type. These types of representatives are usually used in the following situations:
- When there is a shortage of salespeople for the manufacturer. The factory representative will do all the sales.
- When introducing a new product to the market.
- When there is a new market, companies want to enter, but the market is not fully developed for their own sales force to use.
- When cost is more effective than using company personnel. Sales potential may not justify the cost of using a company's sales force, or the company may want to reduce the risk of fixed costs from internal salespeople.
- When a retail buyer needs special sales and marketing support from the manufacturer.
- Manufacturers employ representatives who live in the geographical location of the territory they sell.
Manufacturers' representatives generally represent more than one producer. One of the reasons they can represent more than one manufacturer is related or complementary products, but not competing. Many manufacturers representatives can manage multiple lines through the use of cloud-based sales platforms, such as RepBox. These representatives will know their markets and products well because they usually work in certain industries and geographical areas. Manufacturers' representatives know the market well because they attend conferences, conventions, and trade shows to maintain knowledge about new products and developments in their industry. Many of these representatives sell more technical or scientific products that require high-level product knowledge.
Companies looking for manufacturers representatives often use manufacturers association directories directories, although connections are more often made themselves at major trade shows. Many representative associations are vertical, or industry-specific, and one, the National Association of Producers Agencies is a horizontal, industry-independent association. There are also more modern, algorithm-based services such as Replogic.com that match companies with representatives by areas of expertise and special focus.
Maps Manufacturers' representative
References
Source of the article : Wikipedia
0 Comments