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How to Find the Perfect Sales Rep for Your Product

October 29, 2009

Sarah ShawWish you could find the perfect sale rep? Wish Granted Fairy Godmother Sarah Shaw, of Entreprenette shares some fantastic advice, links for market centers, and even a sample rep contract.

As an up and coming Startup Princess you are probably doing all the sales yourself and either love it or hate it…….I’m good at it but don’t care for it myself.   Sales reps can be a favorable choice if you need to expand your marketplace and ARE terrible at selling, or just plain ol’ hate it!   Unfortunately, knowledgeable and experienced reps are hard to find……and it is a total guessing game to determine if they are the right one for you.  You will need to trust your gut on this one.  I do highly recommend going to visit the showroom and meet them in person. You will get a better feel for them and see where your products will be displayed which is important so you feel properly serviced.  Most rep groups charge a showroom fee to help cover their overhead.  This can often be negotiated depending on how much they want your line.  You will have to determine how you feel about paying these fees – remember everything is negotiable!

Here are some tips to finding the right person for you and your company:
1. Where are they hiding? Finding reps can be tricky as I said above, as there is not a centralized website where they are all listed. You have to search by city – Dallas, Los Angeles, Atlanta and NYC.  Once you get on these sites, you just have to slog through it all or ask someone you know for a recommendation.  I seriously suggest visiting the showroom and meeting the sales reps before making any rash decisions…….seriously!

a.     http://www.americasmart.com

b.     http://www.dallasmarketcenter.com

c.     http://www.californiamarketcenter.com

d.    http://7wnewyork.com

2.  Where else are they hiding? There are three websites I know of if you are looking for independent sales reps, sometimes referred to as road reps. These are people who work from their home and drive around to service the stores in their territory so there is no monthly overhead.  I have included the website for the NY gift show as they list sales reps on their site so that is a great hidden resource.

a.     http://www.greatrep.com

b.    http://www.findfashionrep.com

c.     http://www.nyigf.com
3. What will sales reps need from you? In general they require samples and catalogs or line sheets. A road rep is going to need only a few while a showroom is going to require the entire line.  Each one is different so you need to ask that question each time you speak to or interview a prospective rep.  Be sure to ask if they require anything else from you like tradeshow commitments, special appearances, or co-op catalog fees etc..

4. How much commission should you expect to pay? Most accessory and gift reps are used to making 15% commission on what they sell.  This is a common fee that you may be able to negotiate down to 10 or 12% if you have a very hot item. A rep is used to being paid before the 15th of the month following the sales.  This gives you time to collect as much money as possible for what they sold.  It is NOT a reps job to help you collect money.  And never pay a  sales rep on money you haven’t collect yet!

5. Will my rep make me sign a contract? YES!  And you should to protect yourself as well. As much as I love a handshake, this is not the time to rely on that.  I have included a pdf download of a sample contract that I have used in the past. Feel free to use any or all of it!

Have fun researching the right rep for you! Sarah Shaw offers a variety of coaching programs for women entrepreneurs and specializes in product development, marketing, sales and distribution. SIGN UP for Sarah’s awesome weekly newsletter here.

Written by startupprincess · Filed Under Startup & Grow 

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