| WHY USE SALES REPRESENTATIVES ?
Advantages and drawbacks of selling through sales representatives
Why use sales representatives?
The internal sales force of any company is limited. Marketing and sales personnel are expensive. Using sales representatives allows having a sales force working for your company at no cost, since they are paid only if they sell. There are many advantages to using sales representatives: local presence, better product availability for the customers,…
What is true for your own country is even more true abroad. Local sales agents are a powerful resource. Knowledge of the country and of its industries, knowledge of local customs, knowledge of language, are among the many benefits that local sales representatives bring.
Avantages and drawbacks of sales agents
Whether it be through a distributor or a sales representative, indirect sales present a number of characteristics. These advantages and drawbacks are important to know before starting. Here are the main ones.
Advantages of representatives:
• No cultural differences.
• No language barriers.
• A local sales representative is always appreciated by the customer.
• Better geographical coverage of a territory.
• Sales representatives are a "free" sales force. They are only paid when they sell.
Drawbacks of sales representatives:
• The manufacturer has little or no knowledge of the customer. Contacts are difficult to track.
• The manufacturer becomes dependant on the sales agent.
• Less control over sales prices. Sometimes total loss of control.
• For products needing maintenance, it is difficult to develop a local maintenance capacity.
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