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WHAT A MANUFACTURERS' EXPORT REPRESENTATIVE IS NOT

Unlike distributors, who add cost to the goods they sell, export reps  are not an additional channel, nor a channel intermediaries. They are the manufacturers' sales personnel in the territory, simply paid on a  different basis- rather than salary plus incentive plus expenses. In fact, reaching the channel in the most cost-effective manner is probably the most prevalent  reason for choosing the rep route-although manufacturers report that their reps  bring them many additional marketplace advantages besides the clear economic benefit of no sales expense until there is a sale.

More than a Source, A Resource
The ability of manufacturers' export representatives to outperform direct employee sales forces starts with the inherent benefits of product line synergy, and continues with the caliber of export rep sales personnel. Export Rep success is directly tied  to productivity, so the profession attracts and retains the top talent in each  industry. The factory-direct  salesperson who produces is likely to be promoted, whether to another location or to the home office.

Being rooted geographically leads to stability of relationships, an important  added value in a world where the customer is king. Another, possibly the most  simplistic: the multiple-line sales call is simply more cost-effective. The  buyer saves time discussing several needs during a single meeting.

Because of their multiple-line perspective, export reps are more likely to look at  the forest, not just the trees. Their job is to add value, satisfying the  customer's need and facilitating the flow of goods to the customer, in the way  that the customer wants to buy.

Independent international sales representatives are not only a source but a  resource. They supply in-depth multilevel, interdepartmental coverage, helping  to bridge the frequently encountered communications gap between purchasing and engineering. Their advice is cogent because of the familiarity achieved over the  years not only with the customer's needs, but also with the customer's total  corporate culture. Their greater global market exposure gives them access to a broader  range of information, which they can analyze with objectivity and added perspective.

Advocacy-The customer’s most important resource
The objectivity and perspective that the multiple-line sales professional  brings to the table is never more important than when the customer's need diverges from the manufacturer's standard operating procedures. Whether it's a product modification or an expedited delivery, the international representative can, and will,  fight harder for the customer. The export rep has more at stake, with all the other products being sold into that company, as well as more freedom than the direct salesperson to carry his clout on the customer's behalf all the way to the top.

Because they're in the territory for the long term, export representatives look beyond the sale to the total relationship. Territory knowledge combined with multiple-line exposure and entrepreneurial personality adds up to a wide- perspective on who's doing what, how it's working, and where it leads. The  international market intelligence gleaned from export reps goes far beyond sophisticated forecasting. Good export representatives provide immediate feedback that is invaluable to the manufacturers they represent and to the customers they call on.

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Understanding the difference between Export Representatives and Distributors

MANUFACTURERS’ REP

Sell only in a defined territory

Do not handle competing lines

Sell as an agent; do not take possession

Compensated by commission on sales

Typically handle 12 to 14 lines

Typically entrepreneurial, owner-operated

Interface with distributors, refer orders to distributors, receive commissions on sales through distributors

Add value through application engineering design-in, product synergy

May warehouse goods (for a fee), but do not  maintain inventory

Focus on customer needs

DISTRIBUTORS

May sell anywhere

Frequently handle competing lines

Buy for resale; assume ownership

Compensated by margin of sale price over cost price

Often handle several hundred lines

Large firms often publicly owned

Rely heavily on rep for referrals, training, engineering support

Add value through time-place utility

Maintain inventory

Focus on selling what’s on the shelf

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