Posted by benny (68.78.138.134) on November 16, 2008 at 11:40:04:
In Reply to: Sales posted by Laynie on November 13, 2008 at 08:42:33:
: Hi, I am a graduate student doing a consulting project with a small plating, coating, and anodizing company in Rhode Island. I was wondering if someone could shed some light on the industry in terms of the types of sales forces used in this industry. Is it primarily independent sales representatives or in-house sales forces? Is there a benefit to using one or the other?
: We are proposing that the company we are doing our porject with uses independent sales reps as the first step in growing sales. The company is very small and currently has one salesman who is on medical leave. The CEO does not want to spend money on a large sales force, but he is looking to expand his market. Therefore, we felt independent sales reps might be the best option for him at this time.
: Our research is lacking in this area. How do you find these industry representatives? Is rep/customer relationships and loyalty a big factor in acquiring sales? Is there a cost benefit to using an independent sales rep?
: I am not sure if anyone could help, or if this is the right place to ask, but I thought I'd try. I have not received many answers from others or had the opportunity to post questions. If anyone has any information pertaining to my post, please let me know.
: Thank you,
: Laynie
The problem with independent sales reps with a labor intensive industry is getting them to understand what work you are exactly looking for. Independents working on commission are looking for big dollar orders to make their money. A small Rhode Island company probably cannot handle a big order that will do nothing but extend lead times on your current customers. Then the rep pushes to get the parts done since his dollars are expected on invoice. An owner cant get stuck accepting orders that he knows his business cannot handle, so they usually take care of the quoting internally instead of allowing a sales rep to price orders so they can price or overprice accordingly if it is a job they really are not set up to process. A sales rep isnt gonna last long or work that hard if its all work that your business is not designed for.