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Manufacturers' representatives and wholesale sales representatives sell goods to retail stores, other manufacturers and wholesalers, government agencies, and various institutions. They usually do so within a specific geographical area. Some representatives concentrate on just a few products. An electrical appliance salesperson, for example, may sell 10 to 30 items ranging from food freezers and air conditioners to waffle irons and portable heaters. Representatives of medical supply wholesalers, however, may sell as many as 50,000 items.
The duties of sales representatives usually include locating and contacting potential new clients, keeping a regular correspondence with existing customers, determining their clients' needs, and informing them of pertinent products and prices. They also travel to meet with clients, show them samples or catalogs, take orders, arrange for delivery, and possibly provide installation. A sales representative must also handle customer complaints, keep up to date on new products, and prepare reports. Many salespeople attend trade conferences, where they learn about products and make sales contacts.
Finding new customers is one of sales representatives' most important tasks. Sales representatives often follow leads suggested by other clients, from advertisements in trade journals, and from participants in trade shows and conferences. They may make "cold calls"(meaning calls without a referral, or "warm lead") to potential clients. Sales representatives frequently meet with and entertain prospective clients during evenings and weekends.
Representatives who sell highly technical machinery or complex office equipment often are referred to as sales engineers or industrial sales workers. Because their products tend to be more specialized and their client's needs more complex, the sales process for these workers tends to be longer and more involved. Before recommending a product, they may, for example, carefully analyze a customer's production processes, distribution methods, or office procedures. They usually prepare extensive sales presentations that include information on how their products will improve the quality and efficiency of the customers' operations.
Some sales engineers, often with the help of their company's research and development department, adapt products to a customer's specialized needs. They may provide the customer with instructions on how to use the new equipment or work with installation experts who provide this service. Some companies maintain a sales assistance staff to train customers and provide specific information. This permits sales representatives to devote a greater percentage of their time to direct sales contact.
Other sales workers, called detail people, do not engage in direct selling activities but strive instead to create a better general market for their companies' products. A detail person for a drug company, for example, may call on physicians and hospitals to inform them of new products and distribute samples.
The particular products sold by the sales representative directly affect the nature of the work. Salespeople who represent sporting goods manufacturers may spend most of their time driving from town to town calling on retail stores that carry sporting equipment. They may visit with coaches and athletic directors of high schools and colleges. A representative in this line may be a former athlete or coach who knows intimately the concerns of his or her customers.
Food manufacturers and wholesalers employ large numbers of sales representatives. Because these salespeople usually know the grocery stores and major chains that carry their products, their main focus is to ensure the maximum sales volume. Representatives negotiate with retail merchants to obtain the most advantageous store and shelf position for displaying their products. They encourage the store or chain to advertise their products, sometimes by offering to pay part of the advertising costs or by reducing the selling price to the merchant so that a special sale price can be offered to customers. Representatives check to make sure that shelf items are neatly arranged and that the store has sufficient stock of their products.
Sales transactions can involve huge amounts of merchandise, sometimes worth millions of dollars. For example, in a single transaction, a washing-machine manufacturer, construction company, or automobile manufacturer may purchase all the steel products it needs for an extended period of time. Salespeople in this field may do much of their business by telephone because the product they sell is standardized and, to the usual customer, requires no particular description or demonstration.
Direct, or door-to-door, selling has been an effective way of marketing various products, such as appliances and housewares, cookware, china, tableware and linens, foods, drugs, cosmetics and toiletries, costume jewelry, clothing, and greeting cards. Like other sales representatives, door-to-door sales workers find prospective buyers, explain and demonstrate their products, and take orders. Door-to-door selling has waned in popularity, and Internet-based selling has taken over much of the door-to-door market.
Several different arrangements are common between companies and their door-to-door sales workers. Under the direct company plan, for example, a sales representative is authorized to take orders for a product, and the company pays the representative a commission for each completed order. Such workers may be employees of the company and may receive a salary in addition to a commission, or they may be independent contractors. They usually are very well trained. Sales workers who sell magazine subscriptions may be hired, trained, and supervised by a subscription crew leader, who assigns representatives to specific areas, reviews the orders they take, and compiles sales records.
Under the exhibit plan, a salesperson sets up an exhibit booth at a place where large numbers of people are expected to pass, such as a state fair, trade show, or product exposition. Customers approach the booth and schedule appointments with the salespersons for later demonstrations at home.
The dealer plan allows a salesperson to function as the proprietor of a small business. The salesperson, or dealer, purchases the product wholesale from the company and then resells it to consumers at the retail price, mainly through door-to-door sales.
Under various group plans, a customer is contacted by a salesperson and given the opportunity to sponsor a sales event. In the party plan, for example, the sales representative arranges to demonstrate products at the home of a customer, who then invites a group of friends for the party. The customer who hosts the party receives free or discounted merchandise in return for the use of the home and for assembling other potential customers for the salesperson.
Finally, the COD plan allows representatives to sell products on a cash-on-delivery (COD) basis. In this method, the salesperson makes a sale, perhaps collecting an advance deposit, and sends the order to the company. The company, in turn, ships the merchandise directly to the customer, who in this case makes payment to the delivery person, or to the salesperson. The product is then delivered to the customer and the balance collected.
Whatever the sales plan, door-to-door sales workers have some advantages over their counterparts in retail stores. Direct sellers, for example, do not have to wait for the customer to come to them; they go out and find the buyers for their products. The direct seller often carries only one product or a limited line of products and thus is much more familiar with the features and benefits of the merchandise. In general, direct sellers get the chance to demonstrate their products where they will most likely be used—in the home.
There are drawbacks to this type of selling. Many customers grow impatient or hostile when salespeople come to their house unannounced and uninvited. It may take several visits to persuade someone to buy the product. In a brief visit, the direct seller must win the confidence of the customer, develop the customer's interest in a product or service, and close the sale.
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