Hiring a Sales Rep

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Permalink Reply by Jeanne Kissman on October 23, 2009 at 11:23am

Hi Pat, I have couple suggestions, I have had sales reps in the past. Now that I have more experience it's like a interview process. I 'm just very blunt with them, I don't like to babysit if you know what I mean I don't have time.I just feel them out first. Here are just a few questions that I ask

How offer do you follow up with accounts?
What are you sales goals for the month, and do you have any other products you rep?
Do you have any references as far as wholesale accounts?
How long have you been a sales rep?
Do you have any experience in the beauty industry?
Have you heard of my product? (for me I can't sell a product unless I believe in it first)
If you can meet face to face, appearance and personality play a big role.
Make sure you have explained there % and procedures of your business as far as wholesale form, shipping to customers, receiving the orders etc.

Go with your gut feeling! because it's your company they are representing
Hope this helps a little, if you have any other questions feel free to contact me
Good Luck
Jeanne

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Permalink Reply by Kathleen W. on October 23, 2009 at 12:55pm

What is the usual payment for a sales rep?

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Permalink Reply by IBN Member Traci Dalrymple on October 24, 2009 at 5:43am

I was happy to stumble upon this conversation as I am getting close to hiring a sales rep myself and wanted to share what I have learned. In regards to payment, I have found anywhere from 20-30% in the beauty industry. I'm considering a sliding scale...ie 20% for sales up to $5k per month and sales more than that qualify for 25% and so on. For me, I wouldn't let them cut pricing as I think this could have adverse effects with other wholesale accounts and there isn't enough markup to go below what I'm currently wholesaling for.

I have found a company that helps you find sales reps and gives you loads of tools for training them, holding reps accountable etc...The name of the company is www.mrpusa.com. They worked with Burts Bees when they were first starting out. Roger Wilson is the owner and his email is rogerwilson@mrpusa.com. They will send out a packet of information to you upon request.

Hope this helps and look forward to other insights from everyone.
Traci

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Permalink Reply by Pat Allen on October 24, 2009 at 7:31am

Traci, this is perfect. Exactly what I was hoping to find -- only better. Finding a company that specializes in sales reps tell me that they know what they're doing. I'll keep you posted on my findings. Thank you

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Permalink Reply by Kathleen W. on October 24, 2009 at 4:20pm

Traci good ideas--- I believe I have heard its 20% across the board. But like your idea.

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Permalink Reply by Linda Jakubus on October 25, 2009 at 3:07pm

Question regarding sales reps. If a sales rep's compensation is say 20%, is that commission based on the wholesale cost? I've invented a possible scenario to see if I am understanding this right: If a store is interested in an item that retails for $10.00, they will expect to pay the manufacturer $5.00 wholesale for it, and then you pay the sales rep $2.00, so the manufacturer will be netting $3.00?
Thanks!
Linda

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Permalink Reply by Pat Allen on October 23, 2009 at 1:54pm

Excellent suggestions. I don't know the answers to some of those questions so I'd better get busy and do some more search. Thank you very much.

My feeling on percent commission is based on what they sell the products for. If they cut the price, they're cutting their commission level. However, the higher the selling price, the higher the commission. But, again, I don't know that answer for sure. I guess that all depends on the rep.

I'll keep researching. Thank you.

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Permalink Reply by Marla Bosworth on October 25, 2009 at 7:44pm

Hi Pat,

I've never heard of paying more than 15% commission to sales reps for bath and body products. I can't imagine paying more than that off of wholesale price! You'd have to have incredible margins on your products to make any money. Or at least be cranking out a ton of volume!

If you want to contact me directly at marla@backporchsoap.com I'd be more than happy to discuss my experience with Roger Wilson.

Best,
Marla

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Permalink Reply by IBN Member Jim DeBetta on October 25, 2009 at 8:38pm

There are sites like www.manufacturers-reps.com and others that have a listing of companies like yours where you post your request for reps and the reps that belong to the site look for lines to carry. Be careful though...finding experienced reps is tough since the very best reps do not usually take new product lines or unbranded lines. I used to employ more than 35 of them and most spend their time on the lines that currently produce an income and work on the other lines when they have time. You might be well served to learn how to call on buyers yourself and take charge of the internal sales process.....

Thanks...Jim

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Permalink Reply by IBN Member Jim DeBetta on October 25, 2009 at 8:40pm

Maria is correct...most reps do not earn 20%. Most earn anywhere from 10-15% and 15 is usually the high end for average price point items.

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Permalink Reply by Christine White - Scandle LLC on October 30, 2009 at 2:42pm

Hi,

I tweeted this out a few weeks ago from a fellow member of one of my other networking groups that is extremely benefical to finding a sales rep. I have a rep group and they are fabulous if you find the right one!

http://campaigns.ratepoint.com/campaigns/bbda86630112ba65f9c7982c61...

Christine
www.ABodyCandle.com
tweet @scandlecandle

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Permalink Reply by Monnie Gay on October 30, 2009 at 5:15pm

Aloha, Having been a "headhunter" in the high end of the game for 25+ years and now being a manufacturer of body products we found that a 30 day contract that either of us could cancel seems to work well. We offer a 10% follow up for current accounts and a 15% for new accounts and that seems to work well in Maui and for our Japanese distributor. We have put a $2000 a month requirement on sales for new accounts and allow the sales to include the current accounts for the first six months. I found that we also needed coverage for current accounts instead of having too many fingers in the pie. Our Japanese distributor also has a store so they use thier orders to count toward the $2000 a month quota. We gladly share our little 1 1/2page agreement if you have an interest. We are always willing to help small business. Monnie - asb@hawaii.rr.com

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