Understanding Manufacturers' Reps

Understand Reps in this 2 Minute Video: Explore how George, a die casting company manager, discovers the power of outsourcing his sales tasks through manufacturers’ reps. Learn about the benefits of partnering independent sales professionals and how this decision revolutionizes his business efficiency and success.

Surprising Fact

Manufacturers’ reps work on a commission basis, saving employers Social Security and Medicare costs.

The Role of Manufacturers' Reps

Manufacturers' reps are independent sales professionals who operate on commission. This model provides manufacturers with cost-effective sales expertise without the burden of traditional employee costs. These reps bring extensive knowledge of local markets, offering a personalized approach to sales and meeting specific customer needs efficiently.

Hamilton Automation - Joel Geisel and Partners
Professional Reps: Hamilton Automation LLC

Who Reps Are

  • Manufacturers’ representatives are independent salespeople selling for multiple companies. Reps are the cost-effective outsourced alternative to hiring a factory-paid sales force, so you save money.
  • Manufacturers and service providers face a choice when setting up a sales force.
  • Reps are problem solvers: manufacturers’ representatives work hard to earn reputations as trusted problem solvers. Reps are professionals.

What Reps Do 

  • Reps represent multiple and complementary products and services.
  • Reps represent complementary, non-competitive companies.
  • By representing multiple companies, reps offer multiple problem solutions.
  • As MANA members, reps abide by a code of ethics.
  • Reps operate as businesses in sales, not as salespeople in business.

Value Reps Add

  • Manufacturers’ representatives act as customer advocates with the companies they represent. Selling through independent manufacturers’ reps is more cost effective for the manufacturer or service provider.
  • Reps offer the customer multiple solutions to their problems. The customer spends far less time working with a manufacturers’ rep than with multiple direct salespeople.
  • Intrinsically, manufacturers’ reps create long-lasting relationships. Direct salespeople are always on the move as they are promoted to bigger territories or new responsibilities.
  • People buy from people they know and trust. Manufacturers’ reps work hard to earn reputations as trusted problem solvers.

How to Work Successfully with Independent Sales Reps

  1. Have an agreement in place that protects both the manufacturer and the rep.
  2. Don’t undermine your independent rep with in-house competion.
  3. Agree upon goals together.
  4. Keep the lines of communication open.
  5. Don’t require onerous call reports when an email or phone call will do.
  6. Commit to fair and competitive compensation.
  7. Provide ongoing marketing support.
  8. Include your sales reps on your own product liability insurance policy.

4 Must-Ask Questions When Interviewing a Sales Rep

  1. What is your sales philosophy?
  2. How do you manage leads?
  3. What do you know about our products?
  4. What do you expect from us, and what should we expect from you?

Savvy manufacturers’ know that there is only one thing more expensive than fielding a highly-qualified sales force. It’s not fielding a highly-qualified sales force, especially if your competition does.

But those same savvy manufacturers also know that hiring direct employees to field that highly-qualified sales force is very, very expensive. And they will have to pay those direct employees’ salaries, benefits, and expenses before they actually close any sales. If they actually close any sales at all.

How do those savvy manufacturers avoid paying salaries when there are no sales? They don’t hire sales employees, they hire highly professional, independent contractor, manufacturers’ representative firms that get paid for sales performance, not just for showing up.

10 Things Reps Look For in a Principal