A manufacturers’ agent or manufacturers’ representative is a self-employed salesperson, who represents one or more manufacturers on a commission basis. A large portion of small- to medium-sized manufacturing firms depends upon independent agents to sell their products. A number of larger companies are also turning to the independent agent form of representation because it is proving to be a cost-effective means of selling. Representatives may sell to wholesalers, retailers, government agencies, original equipment manufacturers, hospitals, schools etc. The companies that an agent represents are called principals. A manufacturers’ agent may represent several principals, who produce compatible, but not competitive, lines. For example, an agent may represent one company who manufactures skis, another who makes ski boots, and still others who make sunglasses, caps, gloves, and other clothing for the skier.
In its basic form, a manufacturers’ representative is any individual who agrees to represent a company and sell their products or services on a straight percentage fee, which is automatically added to the selling price of their product or service. This is commonly known as straight commission selling.
Today’s manufacturers’ agents are considered highly skilled marketing professionals, who call on various firms to acquaint them with the products they represent. They make regular contact with these firms, pointing out special features of their products, giving demonstrations, and advising them on the technical features that will meet customers’ requirements. The manufacturers’ agent must have extensive knowledge of the companies he represents and the products he markets. Agents are also required to quote prices, credit terms, delivery dates, shipping methods and costs. They may handle one-time sales, introduce new products, keep orders for established items coming into the plant, and see that their customers get the best possible service. How they perform these duties depends upon whether they sell technical products to businesses and industries or non-technical products for resale to the public.
Manufacturers’ agents who represent technical products usually sell merchandise that industries use in their own businesses. It may involve raw material and parts the company needs to produce the finished products it sells, or it may be machinery or electronic equipment designed to make company operations more efficient. A single sale often represents hundreds of thousands of dollars’ worth of machinery, but one sale may take several months or even years to complete.
Manufacturers’ agents who represent non-technical products generally sell their merchandise to wholesalers or to big retail stores for resale to the public. The manner in which they approach customers is determined by the type of items they sell. They spend a great deal of time taking orders from customers for established lines, but they continually attempt to increase the size of these orders by helping their wholesalers to sell current stock successfully.
We, as a professional straight commission sales agent, pay our own business expenses, which will include our traveling, office space, stationery, telephone, office equipment, overnight lodging, various sales promotions, such as a direct mail program, or trade shows etc. In other words, we are in a position to support ourselves financially one hundred percent for our self-employed business. You don’t pay us a salary, just a percentage of what we sell. We offer a practical, cost-effective alternative to a direct sales force for many growing companies. With us, sales costs are always a fixed percentage of sales.
We never forget that our income is directly tied to personal productivity. We are quick to adopt the efficiencies afforded by e-commerce and field sales automation—often ahead of our 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 we bring—both to those whom we sell to and those we sell for—emerges in great measure from the added market potential we offer, the greater market share we create, and the greater speed of market penetration we facilitate.