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As a manufacturer/supplier, the selling function is THE most important program you develop for your business.  You know what they say, the closer to the customer, the more important you are for the organization…and no one gets closer to the customer than your sales team.

As you look to establish or make adjustments to your sales organization you have choices to make and there is great debate around how your sales team should be assembled.  One thing is for sure, you need to bring the most talented sales professionals you can find to your organization.  The stakes are too high to settle for anything less.

Finding and hiring talented sales professionals is easier said than done, and before you begin your search you need to decide how you want to set up your sales organization.  It’s decision time.

• In House
• Manufacturers Representative
• In House / Mfg Rep combination

There are a variety of factors that must be considered as you look at your options. 

• Do you sell regionally, nationally or internationally? 
• Does your product line require a technical expertise to sell and if yes, how intense are the technical requirements?
• What is your budget?
• How much control over the process do you want?

An in house (direct) sales organization brings more control and with it typically more cost.  With a Mfg Rep organization it is just the opposite; less control and lower costs…typically.   The question that needs to be answered first is what program will be most effective for your business?    This is not so easily answered and will be different from business type to business type and from brand to brand.

Let’s look at it from the standpoint of a new to the market company or brand.   We have some experience with this as our Gator and BPT lines are both new to the US market.   We did not have the benefit of being able to market and sell through existing relationships; we had to start from scratch.  

For a new business covering a large territory, mfg reps can give you access to the market very quickly and with limited upfront costs.  A quality rep firm will provide excellent coverage for their stated territory, have strong existing distributor and end user relationships and have complimentary lines that make it easier to sell your products.

This kind of pioneering activity has its challenges as reps typically will require some existing business to fund the early “get the word out” activity.   In this case your line(s) better have some significant upside and you will have to work hard to show the rep the long term opportunities that exist selling your product.

Having a desirable product and a strong value proposition will bring qualified reps to your lines.  You can gain more of your reps time and energy by treating them as an important part of your business.  Ask for their input, provide incentives, pay on time and follow through on commitments made.

What is your experience?  Reps, direct sales employees or a combination of both?  Where have you had success and where have you seen failure?  Do you have any suggestions for manufacturers looking to establish a rep organization or are already managing one?