OT- Is anyone here a manufacturer's rep or do you work with a rep?

johnkitchens

I am a manufacturer, and I am very strongly considering going the manufacturers rep route. In the past I have had traditional salesmen, but along with that comes base salary, expense account, car allowance, etc. 

I have never worked with a rep before from my side of the desk. I deal with them a lot when purchasing products for our business. 

I am just looking for advice or experience that may help me. 

YukonRon

@johnkitchens  I am not sure I understand. Are you looking for an independent firm to rep your product and replace your salesmen to eliminate overhead? Or are you looking for stronger candidates that have a more valued, vested interest in your business, providing technical support, market development, while also adding sales, which some salesmen, due to organic growth from within, tend to be order takers?
My next question would be the type of product, unique or a commodity? And finally; Who is your customer? 

swordsmn

My Dad did this for decades..  If one of the reps that you buy from is particularly high integrity, I'd query him or her asking if he knows an independent mfgrs rep that might be suited to rep YOUR products.  You'll find the best ones by word of mouth and their Contacts might include some folks who'd be a good fit.  Your reps know your business, or should..  Just a thought

blasting

Hi John.

I think you're asking about on staff salespeople, vs independent regional reps?

I used to own a company and we purchased factory goods.  In my particular industry, I preferred working with factory staff reps.  The hired guns seemed to be an obstacle, in terms of building a relationship with the factory.   To me that was important, and a big reason why the factory guys got 80% +  of my orders.

johnkitchens

Hey guys I was tired when I posted this and didn't give enough details. We manufacture scrap metal processing equipment. Of course scrap metal recycling yards and pick n pull yards are my target customers. 

We are starting to enter the timber/forestry market by building log loaders( excavators with long reach booms, self elevating cabs, grapple, and live heel, etc.), and we are starting to make lowboy trailers.

We are also starting to do job shop work for other companies in the form of fabricating, welding, machining, hydraulic cylinder building and repair etc.

We are trying to diversify because for so many years we have only been involved the scrap metal recycling industry. It has worked for us. We haven't had an outside salesman in many years because we were at full capacity in production and couldn't build our products fast enough.  

Due to the scrap recycling market taking a tumble this year business is way off. That is why I now need someone out there knocking on doors pushing my products. 

I know a manufacturer's rep that calls on me for products that I currently buy and use in production of my equipment. 

I am thinking of signing up with him. He approached me about working with me. He wants a contract, but he is willing to go month to month. 

I like the fact that I only pay him when I get paid.