When I first started out, I thought that Sales Reps would seek me out and would be eager to “rep” my handy products. Boy was I wrong. When I was a new vendor, displaying my products at my first tradeshows, it seemed that Sales Reps were speaking to everyone else but me. What I learned is that Sales Reps only want to rep “proven” products and that they most often avoid new products until they have a successful sales track record. This does make sense since their livelihood depends on successfully selling products to retailers.

What exactly is a Sales Rep?
Sales Reps, also known as Manufacturers Representatives, are sales people who can help you multiple your sales efforts. Imagine having several knowledgeable people working to land new retail accounts for you — paid on commission — rather than you having to slug it out all by yourself. Professional Manufacturers Reps usually have a great deal of experience selling directly to retailers and have either struck out on their own to become Independent Sales Reps or are a part of established Sales Rep Groups.

Here are a few tips to entice Reps to pick up your product:

• Land some great accounts first on your own.
• Ask your best customers which reps call on them and ask for an introduction.
• Offer Sales Reps the accounts you've successfully landed if they bring in a good account for you. Yes, hand them over so they can start earning money immediately from those accounts.
• Attend a industry trade-show and ask other friendly exhibitors for recommendations and introductions.
• Generate buzz. The best way to attract reps is to have a product that retailers want to carry. Reps will eventually seek you out.

Things to know BEFORE you sign an agreement with a Sales Rep:

• Depending on the size of the accounts, Sales Reps are typically paid anywhere between (4%-15% percent). The percentage is lower for the Big Box stores like Walmart and Target (because the volume of sales is typically much larger) and the percentage is on the higher end for the smaller, independent retail stores.
• Be cautious about “exclusivity” agreements with a Sales Rep. Ask them what specific accounts they can secure and then “carve” out territories either by specific accounts (e.g., Walmart, Bed Bath & Beyond, QVC…), or by geography (if they have a stronghold on retail stores in Canada give them Canada). You can even divide by category types such as “online,” “catalogs,” and “grocery and drug stores.”
• Don’t be surprised when reps want them all. And if they can convince you that they are that good, you may want to let them have them all.
• Make sure to agree on performance expectations.

How to manage the relationship with your Reps:

• Create clear expectations regarding their sales plan.
• Agree on the process and methods for communication (how and when you will receive account updates and results).
• Agree on how and when reps will be paid.
• Be supportive! We used to send our reps $200 before trade-shows to help offset their travel costs.
• At trade-shows, we gave them a duffle bag on wheels with our large logo printed on the front to make it easier for them to work the trade-show. This also created great visibility for our brand logo.
• Ask if they are willing to include you in sales calls should you wish to participate.

I hope this serves you well.