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ADVANTAGES OF REPRESENTATION
A Representatives' Function
The primary function of the manufacturers' export representative is to sell products to a specific industry or global market. An export representative must be able to respond quickly to
customer service requests within a sales territory.
The export representatives must be well versed in specific manufacturing or product details, which are supplied by the manufacturer. This enables the export representative to
have the knowledge not only to sell the products but identify product applications.
The manufacturers' export representative provides a valuable service to the customer by supplying buying assistance with an interest towards
selling as many related products as possible to customers in the territory.
Trigger effect of sales on other products
Because the export representatives
sell products that are compatible in nature, sales of one component or product can lead to sales of related products. This ultimately leads to an increase in the total number of products sold by the agency, and also reduces the cost of
selling since single visits can provide sales coverage for many products.
Quick penetration into the marketplace
Because of their familiarity with
manufacturing activities, export representatives are quick to identify where new products can be sold. A direct sales force, in contrast, may take months or years to acquire similar knowledge.
Territory familiarity
Since the export representative lives in the assigned territory and is familiar with the vicinity, travel time and expenses are decreased.
Cost effectiveness
The manufacturers' export representative is compensated for results. Lack of sales results in a lack of commissions paid. A true evaluation of the total cost of a $50,000-a-year company employed direct salaried salesperson is
actually closer to $100,000--125,000 when pension, travel and expenses, holidays, and all other costs are computed.
Local acceptance
The manufacturers'
export representative is familiar in the sales territory to many of the manufacturers and customers. Many buyers may also feel that it is easier to get in touch with the export representative if he is local, should a problem arise.
Reduced expense costs
Since manufacturers' export representatives work independently of the company, and are more interested in the bottom line, expense
account monitoring is not necessary, thus saving time and money.
Multiple line buying service
The use of a manufacturers' export representative often
saves businesses time and money. The buyer may prefer to contact one or more trusted manufacturers' export representatives in a similar field as a source of supply and competitive pricing rather than spend time interviewing many direct
salespersons.
As partners, export representatives and manufacturers must share information and goals as marketing partners. By strengthening this partnership through open communication and joint goal setting, the representative
and the manufacturer will reap the results of increased global market penetration, achieve greater levels of product sales/profitability and insure the long-term continuity of the relationship.
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