Sales agents

[AndyF85]

Hi all,

Just wondering what peoples opinions are for working with sales agents.

For a company looking for the lowest level of risk growth, we were looking at sales agents across different locations across the uk.

We are just in the planning stage for a new line of products we are importing. We have the samples, we have the prices, we have our competitors prices we are looking for the most important (and most difficult part) how to get the product from warehouse to customer.

The product is disposable packaging for the food industry (both plastic and environmentally friendly). My current strategy is to work with a sales agent to sell directly to end users in the hospitality and catering industry in my location (the north west), while i sell bulk to distributors in other locations and also to large food processing plants who may supply various food chains themselves.

The thinking is that i can generate higher margin products with the sales agent, which can help cash flow when i am dealing with lower margin sales working with other distributors in other areas of the country.

How would people approach a sales agent?
- Where can you find them? (I've looked on a few sites "agentbase" and "upinsales")
- How much support should be dedicated to these sales agents so that they can get the best results? (Weekly meetings, Monthly meetings)
- Has anyone considered other criteria with a sales agent for the beginning period, i.e. payment against non-sales targets such as meetings or extracting information from the market?
- Are there any pitfalls which must be avoided from the beginning in anyones experience?

I have no expectation to just give the product to the sales agent and leave them to it. Im not worried about being there with them for support. The reason im with them is the low risk relationship in that its commission only.

What are peoples views?

 

[Mark T Jones]

I’d tend to work backwards from your target market

figure out the purchasing chain and who / how they are sold

ideally you want your product to fit into a Bon-conflicting portfolio. The huge challenge is keeping your product at the forefront of the agent’s mind and presentation

 

[Mr D]

I have no expectation to just give the product to the sales agent and leave them to it. Im not worried about being there with them for support. The reason im with them is the low risk relationship in that its commission only.

What are peoples views?

Low risk for whom? For the sales person? Or for you?

Last time someone suggested to me that I work on commission only I suggested 30% paid up front on sale upon receiving the notification.

Offer little and expect to either be ignored or your stuff low down on suggestions to customers as to what to buy.

 

[AndyF85]

I’d tend to work backwards from your target market

figure out the purchasing chain and who / how they are sold

ideally you want your product to fit into a Bon-conflicting portfolio. The huge challenge is keeping your product at the forefront of the agent’s mind and presentation

The agent would have to work in the industry that we are aiming to sell into, so that as you say the customer isnt burdened with yet another person trying to sell to them, and perhaps they can even get rid of one supplier or a trip to the wholesaler if our agent can offer a better deal.

It may even give the agent and the customer the benefit of putting one set of products on offer so that the agent can sell their other products, benefiting both individuals. After all they wont be holding any stock, nor would their expenses go up as a result of selling the products i offer.

Low risk for whom? For the sales person? Or for you?

Last time someone suggested to me that I work on commission only I suggested 30% paid up front on sale upon receiving the notification.

Offer little and expect to either be ignored or your stuff low down on suggestions to customers as to what to buy.

The low risk is both for our company, and the sales agent.
- My minimal risk is the cost of investing time in an agent, and perhaps some start up bonus fees.
- The sales agent has little risk other than carrying an extra 5 piece of paper with him as he visits his vendors.

The offer is around 10-15% which would gross between £3k and £6k monthly.



I think the maths work, for me its being able to find the right person, who works with the right customers already.

 

[Mr D]

The agent would have to work in the industry that we are aiming to sell into, so that as you say the customer isnt burdened with yet another person trying to sell to them, and perhaps they can even get rid of one supplier or a trip to the wholesaler if our agent can offer a better deal.

It may even give the agent and the customer the benefit of putting one set of products on offer so that the agent can sell their other products, benefiting both individuals. After all they wont be holding any stock, nor would their expenses go up as a result of selling the products i offer.



The low risk is both for our company, and the sales agent.
- My minimal risk is the cost of investing time in an agent, and perhaps some start up bonus fees.
- The sales agent has little risk other than carrying an extra 5 piece of paper with him as he visits his vendors.

The offer is around 10-15% which would gross between £3k and £6k monthly.



I think the maths work, for me its being able to find the right person, who works with the right customers already.

Why work in the industry?
Would that not be competing on products?

 

[AndyF85]

Sorry, work in that market.

I.e. i am aiming the product at the food and catering industry who use packaging.

If there is a sales agent who currently sells lets say food ingredients to these customers, then this would be ideal to just add our products on.

 

[Gordon L]

my advice if you can is to get a salesman or woman even if an agent on a small retainer.

I’ve had agents in the past with differing results. Hard to find a decent one. Those who have been successful for me have been those who live reasonably close so that I can develop a relationship, meet them regularly and have been people who I get on with, those who I have paid a modest retainer to (at times).