What is a Manufacturer’s Representative ?

Manufacturer’s Representatives may also be known as a sales representative, sales agent, manufacturers’ agent or a manufacturer rep. A manufacturer’s representative can be an individual or an organization of individuals called “sales agency”. They are independent contractors hired to represent several manufacturers to sell their products that do not compete with one another to wholesale customers in a definited territory.

What is the role of a Manufacturer Representative ?

A Manufacturer Representative may be involved in sales, marketing, wholesaling or retailing of manufacturers goods and products. As a sales reps of a company, manufacturer representatives are responsible for covering assigned territories. They’re meeting with customers in-person, on virtual meetings or conference calls. They are the face of their manufacturer and work to extend a company’s reach.

What are the duties of a Manufacturers Representative ?

Manufacturer’s Representatives have many responsibilities, including:

  • finding new distribution channels for manufacturer’s products
  • negotiating prices, discount and conditions of sale with potential customers
  • maintaining relationships with distributors, making them aware of new products or new promotions
  • providing customer service for customers who purchase the product from the retailer
  • providing technical expertise about the products

A manufacturer representative will often attend trade shows to promote manufacturers products by providing demonstrations. They also have the ability to offer samples of manufacturers products and answer any questions clients may have. They provide an invaluable resource for manufacturers by staying up-to-date on the latest trends, technology, and practices that may affect their business development. A manufacturers’ representative can also visit new prospects at their offices to discuss various options available such as new products offered, payment terms, and volume discounts.

How much a Independent Sales Agent get paid?

One of the most cost effective way to grow the business of a manufacturer is through a manufacturer’s representative than hiring a full-time dedicated direct sales force. When you work with independent manufacturer’s representatives, you usally only pay them a commissions based on percentage of the sales they make in their territory. For exemple, an automotive aftermarket manufacturers rep commissions may vary between 5% and 20% depending on the type of products, their sales experience, the sales volumes and other factors. The cost of acquiring new customers can be high and the commission rate should reflect this to ensure the manufacturer’s rep ROI. Nothing motivates sales better than an attractive commission.

The Importance of Working with a Manufacturers Rep for Your Business development

Working with a manufacturers rep can help your company in many ways including increasing your sales by getting your product into retail stores and distributors, and helping you to determine the best way to market your product in a specific area. A manufacturer representative will help you determine customer needs and what works in their market.

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