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REP. of MFG. WORKING. |
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Significant Points |
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- Many are self-employed
manufacturers' agents who work for a commission.
- A bachelor's degree
increasingly is required; nevertheless, some individuals with
previous sales experience enter the occupation without a college
degree.
- Prospects will be best for
those with the appropriate knowledge or technical expertise, as
well as the personal traits necessary for successful selling.
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Nature of the Work |
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Sales representatives are an important part of manufacturers' and
wholesalers' success. Regardless of the type of product they sell,
their primary duties are to interest wholesale and retail buyers
and purchasing agents in their merchandise, and to address any of
the client's questions or concerns. Sales representatives
represent one or several manufacturers or wholesale distributors
by selling one product or a complimentary line of products. Sales
representatives also advise clients on methods to reduce costs,
use their products, and increase sales. They market their
company's products to manufacturers, wholesale and retail
establishments, construction contractors, government agencies, and
other institutions. (retail salespersons, who sell directly to
consumers, and sales engineers, who specialize in sales of
technical products and services, are discussed elsewhere in the
Handbook.)
Depending on where they work,
sales representatives have different job titles. Those employed
directly by a manufacturer or wholesaler often are called sales
representatives. Manufacturers' agents or
manufacturers' representatives are self-employed sales workers
who contract their services to all types of manufacturing
companies. However, many of these titles are used interchangeably.
Sales representatives spend much
of their time traveling to and visiting with prospective buyers
and current clients. During a sales call, they discuss the
client's needs and suggest how their merchandise or services can
meet those needs. They may show samples or catalogs that describe
items their company stocks and inform customers about prices,
availability, and ways in which their products can save money and
improve productivity. Because a vast number of manufacturers and
wholesalers sell similar products, sales representatives must
emphasize any unique qualities of their products and services. As
independent agents, they might sell several complimentary products
made by different manufacturers and, thus, take a broad approach
to their customers' business. Sales representatives may help
install new equipment and train employees. They also take orders
and resolve any problems with or complaints about the merchandise.
Obtaining new accounts is an
important part of the job. Sales representatives follow leads from
other clients, track advertisements in trade journals, participate
in trade shows and conferences, and may visit potential clients
unannounced. In addition, they may spend time meeting with and
entertaining prospective clients during evenings and weekends.
In a process that may take several
months, sales representatives present their product and negotiate
the sale. Aided by a laptop computer connected to the Internet,
they often can answer technical and nontechnical questions
immediately.
Frequently, sales representatives
who lack technical expertise work as a team with a technical
expert. In this arrangement, the technical expert—sometimes a
sales engineer—will attend the sales presentation to explain the
product and answer questions or concerns. The sales representative
makes the preliminary contact with customers, introduces the
company's product, and closes the sale. The representative is then
able to spend more time maintaining and soliciting accounts and
less time acquiring technical knowledge. After the sale,
representatives may make follow-up visits to ensure that the
equipment is functioning properly and may even help train
customers' employees to operate and maintain new equipment. Those
selling consumer goods often suggest how and where merchandise
should be displayed. Working with retailers, they may help arrange
promotional programs, store displays, and advertising.
Sales representatives have several
duties beyond selling products. They also analyze sales
statistics; prepare reports; and handle administrative duties,
such as filing their expense account reports, scheduling
appointments, and making travel plans. They study literature about
new and existing products and monitor the sales, prices, and
products of their competitors.
Manufacturers' agents who operate
a sales agency must also manage their business. This requires
organizational skills as well as knowledge of accounting,
marketing, and administration. |
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Working Conditions |
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Some sales representatives have large territories and travel
considerably. A sales region may cover several States, so they may
be away from home for several days or weeks at a time. Others work
near their "home base" and travel mostly by automobile. Due to the
nature of the work and the amount of travel, sales representatives
typically work more than 40 hours per week.
Although the hours are long and
often irregular, most sales representatives have the freedom to
determine their own schedule. Consequently, they can arrange their
appointments so they can have time off when they want it. Sales
representatives are often on their feet for long periods and may
carry heavy sample products, which necessitates some physical
stamina.
Dealing with different types of
people can be stimulating but demanding. Sales representatives
often face competition from representatives of other companies.
Companies usually set goals or quotas that representatives are
expected to meet. Because their earnings depend on commissions,
manufacturers' agents are also under the added pressure to
maintain and expand their clientele. |
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Employment |
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Manufacturers' and wholesale sales representatives held about 1.8
million jobs in 2000. Three of every 5 salaried representatives
worked in wholesale trade—mostly for distributors of machinery and
equipment, groceries and related products, and motor vehicles and
parts. Others were employed in manufacturing and mining. Due to
the diversity of products and services sold, employment
opportunities are available in every part of the country in a wide
range of industries.
In addition to those working
directly for a firm, many sales representatives are self-employed
manufacturers' agents. They often form small sales firms and work
for a straight commission based on the value of their own sales.
However, manufacturers' agents usually gain experience and
recognition with a manufacturer or wholesaler before becoming
self-employed. |
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Training, Other Qualifications, and Advancement |
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The
background needed for sales jobs varies by product line and
market. Most firms require a strong educational background and
increasingly prefer or require a bachelor's degree as the job
requirements have become more technical and analytical.
Nevertheless, many employers still hire individuals with previous
sales experience who do not have a college degree. For some
consumer products, factors such as sales ability, personality, and
familiarity with brands are as important as a degree. On the other
hand, firms selling complex, technical products may require a
technical degree in addition to some sales experience. Many sales
representatives attend seminars in sales techniques or take
courses in marketing, economics, communication, or even a foreign
language to provide the extra edge needed to make sales. In
general, companies are looking for the best and brightest
individuals who have the personality and desire to sell.
Many companies have formal
training programs for beginning sales representatives lasting up
to 2 years. However, most businesses are accelerating these
programs to reduce costs and expedite the returns from training.
In some programs, trainees rotate among jobs in plants and offices
to learn all phases of production, installation, and distribution
of the product. In others, trainees take formal classroom
instruction at the plant, followed by on-the-job training under
the supervision of a field sales manager. Some sales
representatives complete certification courses to become Certified
Professional Manufacturers' Representatives (CPMRs).
New workers may get training by
accompanying experienced workers on their sales calls. As they
gain familiarity with the firm's products and clients, these
workers are given increasing responsibility until they are
eventually assigned their own territory. As businesses experience
greater competition, increased pressure is placed upon sales
representatives to produce sales.
Sales representatives stay abreast
of new products and the changing needs of their customers in a
variety of ways. They attend trade shows where new products and
technologies are showcased. They also attend conferences and
conventions to meet other sales representatives and clients and
discuss new product developments. In addition, the entire sales
force may participate in company-sponsored meetings to review
sales performance, product development, sales goals, and
profitability.
Those who want to become sales
representatives should be goal-oriented and persuasive, and work
well both independently and as part of a team. A pleasant
personality and appearance, the ability to communicate well with
people, and problem-solving skills are highly valued. Furthermore,
completing a sale can take several months and thus requires
patience and perseverance.
Frequently, promotion takes the
form of an assignment to a larger account or territory where
commissions are likely to be greater. Experienced sales
representatives may move into jobs as sales trainers, who instruct
new employees on selling techniques and company policies and
procedures. Those who have good sales records and leadership
ability may advance to sales supervisor or district manager.
In addition to advancement
opportunities within a firm, some manufacturers' agents go into
business for themselves. Others find opportunities in purchasing,
advertising, or marketing research. |
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THE REP FUNCTION
Manufacturers' representatives are independent professional providers
of field sales and marketing services to manufacturers or suppliers.
They typically handle a portfolio of related but non-competitive
product lines, working under a contractual arrangement within a
defined geographic territory, on an exclusive basis within their
assigned field of responsibility.
Manufacturers' representative firms come in all shapes and sizes, from
small defined-focus firms to organizations, handling all facets of
marketing for their principals. Big or small, these firms never forget
that their income is directly tied to personal productivity. They have
been quick to adopt the efficiencies afforded by eCommerce and field
sales automation - often ahead of their principals - providing
sophisticated opportunity tracking as well as instant access to all
customer and factory data - inventory status, order status, customer
history, etc.
The value that independent manufacturers' representatives bring - both
to those they sell to and those they sell for - emerges in great
measure from the synergy created through the representation of
multiple lines. Their product portfolios allow manufacturers'
representatives to present broad-based solutions to customer problems,
rather than the price-and-delivery responses typical to single-product
selling. Their consultative approach not only opens the door for other
lines, but also adds value and stimulates a partnering relationship
with the customer, as the purchase progresses through an entire
project.
There's even more benefit to synergy: the added market potential it
offers, the greater market share it creates, and the greater speed of
market penetration it facilitates. The multiple-line sales
professional can afford to call on customers too small to be
profitable for a single line. The new entry into the cutting tool
business gets in the door and on the floor faster, because the
company's representatives have already established a relationship with
the customer for their abrasives and their grinders. The ability to
leverage the entree created by the other lines in the portfolio gets a
vendor into more places, and quicker, than could likely be achieved by
a single-line sales force, no matter how aggressive and proficient.
Basic economics may drive most manufacturing start-ups to go the rep
route...but demonstrated successes keep more than 80% of all
manufacturing companies using reps at least in some territories or
market segments in the electrical industry.
What a manufacturers' representative is not:
Unlike distributors, who take title and add cost to the goods they
sell, reps are not an additional channel, nor are they middlemen,
channel intermediaries. They are the manufacturers' sales personnel in
the territory, simply paid on a different basis - commissions, rather
than salary plus incentive plus expenses. In fact, reaching the
channel in the most cost-effective manner is probably the most
prevalent reason for choosing the rep route - although manufacturers
report that their reps bring them many additional marketplace
advantages, besides the clear economic benefit of no sales expense
until there is a sale.
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