What exactly is a manufacturers' representative? Part Two.
Following are some questions and answers that will explain what a manufacturers representative and what it does.
A manufacturers' representative agency is a business entity working in a defined territory, selling related but non-competing products for more than one manufacturer or principal.
Why Would a Manufacturer Use a Representative Rather Than Direct Sales?
Multiple-line selling creates a synergistic effect, with a broader, better defined customer base, and with more comprehensive coverage, this results in deeper market penetration and increased sales.
Ewing-Foley also receives a commission, and only for our results. Manufacturers who want to lower and stabilize sales expenses relative to the actual flow of orders can turn to a manufacturers' representative to augment their sales and marketing function.
Manufacturers' representatives ultimately save the customer money because manufacturers that market their products through outsourced field sales can operate more efficiently, which ultimately may be passed on to the customer in the form of a lower priced product. Single visits can provide sales coverage for many products and ultimately save the customer's precious time.
Does the Manufacturers' Representative Add Cost to the Ultimate Price of the Product?
No, representatives can save the customer money because in many instances they are a lower cost alternative to factory direct salespeople who are compensated with more than just a commission.