Understanding the Differences Between Representatives and Distributors

Manufacturers Representatives	Distributors
• Sell only in defined territory • Do not handle competing lines • Sell as an agent; do not take possession • Compensated by commission on sales • Typically handle 12 to 14 lines • Typically entrepreneurial, owner-operated • Interface with distributors, refer orders to distributors, receive commissions on sales through distributors • Add value through application engineering, design-in, product synergy • May warehouse (for a fee), but do not maintain inventory • Focus on customers needs	• May sell anywhere • Frequently handle competing lines • Buy for resale; assume ownership • Compensated by margin of sale price over cost price • Often handle several hundred lines • Large firms often publicly-owned • Rely heavily on rep for referrals, training, engineering support • Add value through time-place utility • Maintain inventory • Focus on selling, what’s on the shelf

Manufacturers Representatives

Distributors

• Sell only in defined territory
• Do not handle competing lines
• Sell as an agent; do not take possession
• Compensated by commission on sales
• Typically handle 12 to 14 lines
• Typically entrepreneurial, owner-operated
• Interface with distributors, refer orders to distributors, receive commissions on sales through distributors
• Add value through application engineering, design-in, product synergy
• May warehouse (for a fee), but do not maintain inventory
• Focus on customers needs

• May sell anywhere
• Frequently handle competing lines
• Buy for resale; assume ownership
• Compensated by margin of sale price over cost price
• Often handle several hundred lines
• Large firms often publicly-owned
• Rely heavily on rep for referrals, training, engineering support
• Add value through time-place utility
• Maintain inventory
• Focus on selling, what’s on the shelf

Bolsa de papel Kraft resistente a la humedad para residuos orgánicos

18 Benefits of Outsourcing Field Sales

Understanding the Differences Between Representatives and Distributors

Related posts

The Customer Benefits Too