Manufacturers' Representative - When Do You Use A Manufacturer's Rep?

When Do You Use A Manufacturer's Rep?

A manufacturer representative is the most widely used type of agent. These types of reps are typically used in the following situations;

• When there is lack of a sales force for the manufacturer. The manufacturer's rep will then do all of the selling.

• When introducing a new product into the market.

• When there is a new market the company wants to enter, but the market is not fully developed for their own sales force to be used.

• When it is more cost-effective than using the company’s sales reps. The sales potential may not justify the cost of using the company’s sales force.

Manufacturer representatives generally represent more than one manufacturer. One of the reasons they can represent more than one manufacturer is the products are related or complementary, but not competing. These reps will know their market and products well since they typically work in a specific industry and geographic area. Manufacturer's reps know the market well because they attend conferences, conventions and trade shows in order to keep up on new products and developments in their industry. Many of these reps sell more technical or scientific products which requires a high level of product knowledge.

Companies seeking manufacturers' representatives often use the directories of manufacturers' representative associations. Many of these associations are vertical, or industry-specific, and one, the Manufacturers' Agents National Association is a horizontal, industry-independent association.