Manufacturer’s Representative

Manufacturer’s representative or rep, manufacturer’s broker andmanufacturer’s agent are all terms used to describe independentsales agents who work on commission. You don’t pay them a salary,just a percentage of what they sell. Manufacturer’s reps offer apractical, cost-effective alternative to a direct sales force formany growing companies. There are more than half a million reps inNorth America, most selling to targeted markets in selectgeographic regions. Reps know their markets well because they callon local buyers regularly and have established sound workingrelationships with them.

Using manufacturer’s reps can provide you with many of thebenefits of having a satellite office in the location–includingknowledge of local markets and rapid access to largeaccounts–without your incurring large fixed costs. With reps,sales costs are always a fixed percentage of sales. The downside isthat reps typically handle many different products. Some may becomplementary to yours; others may compete. A typicalmanufacturer’s rep earns a 5-percent commission on sales, althoughthat amount varies widely depending on the product, market andsales volume.

If you’re interested in learning more about manufacturer’s reps,contact the Manufacturers’ Agents National Association.