How can I get an Independent Sales Rep to take my line?
How can I get an Independent Sales Rep to take my line?
Your Hot Concept
You are excited about your new hot product or service. Everyone you talk to is excited. You know how to create or procure the item, whether domestically or via import. Up until now you have focused on these production or procurement aspects. But now you need to find somebody to sell it. So, you try to find Independent Sales Reps or a Rep Agency.
But wait! -- the Independent Reps I have contacted will not take my line!
The primary question that an Independent Rep has is whether they can sell the product or service at the intended price. When a product or service is unproven, has no track record, requires market research, and perhaps is not even fully developed, either the Rep is hesitant to take the line at all, or would do so under the condition that they are compensated for their product introduction efforts. In effect, they would be "building your business". In such cases, the Rep may require an up-front fee in some form. The best way to think of this cost is as a market development cost, and not as a commission.
Steps to take to gain the interest of an Independent Sales Rep
Here are steps to improve the ability of the Rep to sell your product and help you to capture the Rep's attention:
1. Have the correct wholesale price. It is common for an inexperienced Principal to put the wrong price on a product. Surprisingly, the price is often too low. When pricing a product, in addition to direct production costs, there are costs of production overhead, marketing, selling, packaging and shipping, damaged and lost goods, obsolescence, and not to be forgotten, the "all-important" profit!
Often pricing is accomplished by using a rule of thumb such as taking the costs of raw material and labor and multiplying by a factor of 2x or 2.5x to create the wholesale price. When importing, this factor can even as high as 3x to cover the additional damaged and lost goods plus importing mistakes.
2. Have the correct retail price. Typically a product will retail at the "keystone," or double of the wholesale price. Under this model, if you want to sell your product for $5.00, then it has to retail for $10.00. Be sure that you product is properly priced at the retail level.
3. Test market your product. To capture the interest of a Rep, it is much easier if you can show success in a test market. Without any proof that the product can be sold, the Rep or Rep Agency will rarely just take the product and start selling it.
For example, here are two type of tests applicable to the retail market:
1) Get a half dozen retailers in your area to agree to take your product on consignment. That is, they only have to pay you when your product sells. They must agree to pay your established wholesale price, and sell for your expected retail price for the test to be valid.
2) Attend a local flea market, fair, bazaar, craft show, or harvest festival. Sell at your retail price.
You will obtain critical market feedback from each of these exercises. The questions you want to answer are:
1) Does your product interest people?
2) What suggestions do they make?
3) Does it sell? Why, or why not?
4) Do you have the correct price? Was there price resistance?
5) And most important for the consignment test: will the buyers re-order the product?
With the knowledge gained from these tests, you are much further towards the goal of using an Independent Sales Rep or Rep Agency. Your success in the marketplace will pave the way for acceptance by the Rep. On the other hand, if the product does not sell or the retailer will not reorder, you have the market feedback needed reprice, redesign, or repackage your product. Or you may find that you have to discontinue the product entirely. You are ahead of the game as compared to where you would be if you tried a full roll out without a market test.
How can I get an Independent Sales Rep to take my line - To learn more about this author, visit Jeff Simon's Website.
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I am new to the market. How can I get an Independent Sales Rep to take my line?
Your Hot Concept
You are excited about your new hot product or service. Everyone you talk to is excited. You know how to create or procure the item, whether domestically or via import. Up until now you have focused on these production or procurement aspects. But now you need to find somebody to sell it. So, you try to find Independent Sales Reps or a Rep Agency.
But wait! -- the Independent Reps I have contacted will not take my line!
The primary question that an Independent Rep has is whether they can sell the product or service at the intended price. When a product or service is unproven, has no track record, requires market research, and perhaps is not even fully developed, either the Rep is hesitant to take the line at all, or would do so under the condition that they are compensated for their product introduction efforts. In effect, they would be "building your business". In such cases, the Rep may require an up-front fee in some form. The best way to think of this cost is as a market development cost, and not as a commission.
Steps to take to gain the interest of an Independent Sales Rep
Here are steps to improve the ability of the Rep to sell your product and help you to capture the Rep's attention:
1. Have the correct wholesale price. It is common for an inexperienced Principal to put the wrong price on a product. Surprisingly, the price is often too low. When pricing a product, in addition to direct production costs, there are costs of production overhead, marketing, selling, packaging and shipping, damaged and lost goods, obsolescence, and not to be forgotten, the "all-important" profit!
Often pricing is accomplished by using a rule of thumb such as taking the costs of raw material and labor and multiplying by a factor of 2x or 2.5x to create the wholesale price. When importing, this factor can even as high as 3x to cover the additional damaged and lost goods plus importing mistakes.
2. Have the correct retail price. Typically a product will retail at the "keystone," or double of the wholesale price. Under this model, if you want to sell your product for $5.00, then it has to retail for $10.00. Be sure that you product is properly priced at the retail level.
3. Test market your product. To capture the interest of a Rep, it is much easier if you can show success in a test market. Without any proof that the product can be sold, the Rep or Rep Agency will rarely just take the product and start selling it.
For example, here are two type of tests applicable to the retail market:
1) Get a half dozen retailers in your area to agree to take your product on consignment. That is, they only have to pay you when your product sells. They must agree to pay your established wholesale price, and sell for your expected retail price for the test to be valid.
2) Attend a local flea market, fair, bazaar, craft show, or harvest festival. Sell at your retail price.
You will obtain critical market feedback from each of these exercises. The questions you want to answer are:
1) Does your product interest people?
2) What suggestions do they make?
3) Does it sell? Why, or why not?
4) Do you have the correct price? Was there price resistance?
5) And most important for the consignment test: will the buyers re-order the product?
With the knowledge gained from these tests, you are much further towards the goal of using an Independent Sales Rep or Rep Agency. Your success in the marketplace will pave the way for acceptance by the Rep. On the other hand, if the product does not sell or the retailer will not reorder, you have the market feedback needed reprice, redesign, or repackage your product. Or you may find that you have to discontinue the product entirely. You are ahead of the game as compared to where you would be if you tried a full roll out without a market test.
How can I get an Independent Sales Rep to take my line - To learn more about this author, visit Jeff Simon's Website.
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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