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  Significant Points
  Nature of the Work
  Working Conditions
  Employment
  Training, Other  Qualifications, and Advancement
  Rep Function

 

   REP. of MFG. WORKING.
Significant Points
  • 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.
Nature of the Work    
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.

 
Working Conditions    
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.

 
Employment    
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.

 
Training, Other Qualifications, and Advancement    
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.

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.