Manufacturers' and Wholesale Sales Representatives Career Information
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Significant Points
· Many are self-employed manufacturers' agents who work for a commission.
· A bachelor's degree increasingly is required; nevertheless, some individuals with previous sales experience enter the occupation without a college degree.
· Prospects will be best for those with the appropriate knowledge or technical expertise, as well as the personal traits necessary for successful selling.
Nature of the Work
Sales
representatives are an important part of manufacturers' and wholesalers' success.
Regardless of the type of product they sell, their primary duties are to interest
wholesale and retail buyers and purchasing agents in their merchandise, and
to address any of the client's questions or concerns. Sales
representatives represent one or several manufacturers or wholesale distributors
by selling one product or a complimentary line of products. Sales representatives
also advise clients on methods to reduce costs, use their products, and increase
sales. They market their company's products to manufacturers, wholesale and
retail establishments, construction contractors, government agencies, and other
institutions.
Depending on where they work, sales representatives have different job titles. Those employed directly by a manufacturer or wholesaler often are called sales representatives. Manufacturers' agents or manufacturers' representatives are self-employed sales workers who contract their services to all types of manufacturing companies. However, many of these titles are used interchangeably.
Sales representatives spend much of their time traveling to and visiting with prospective buyers and current clients. During a sales call, they discuss the client's needs and suggest how their merchandise or services can meet those needs. They may show samples or catalogs that describe items their company stocks and inform customers about prices, availability, and ways in which their products can save money and improve productivity. Because a vast number of manufacturers and wholesalers sell similar products, sales representatives must emphasize any unique qualities of their products and services. As independent agents, they might sell several complimentary products made by different manufacturers and, thus, take a broad approach to their customers' business. Sales representatives may help install new equipment and train employees. They also take orders and resolve any problems with or complaints about the merchandise.
Obtaining new accounts is an important part of the job. Sales representatives follow leads from other clients, track advertisements in trade journals, participate in trade shows and conferences, and may visit potential clients unannounced. In addition, they may spend time meeting with and entertaining prospective clients during evenings and weekends.
In a process that may take several months, sales representatives present their product and negotiate the sale. Aided by a laptop computer connected to the Internet, they often can answer technical and nontechnical questions immediately.
Frequently, sales representatives who lack technical expertise work as a team with a technical expert. In this arrangement, the technical expert—sometimes a sales engineer—will attend the sales presentation to explain the product and answer questions or concerns. The sales representative makes the preliminary contact with customers, introduces the company's product, and closes the sale. The representative is then able to spend more time maintaining and soliciting accounts and less time acquiring technical knowledge. After the sale, representatives may make follow-up visits to ensure that the equipment is functioning properly and may even help train customers' employees to operate and maintain new equipment. Those selling consumer goods often suggest how and where merchandise should be displayed. Working with retailers, they may help arrange promotional programs, store displays, and advertising.
Sales representatives have several duties beyond selling products. They also analyze sales statistics; prepare reports; and handle administrative duties, such as filing their expense account reports, scheduling appointments, and making travel plans. They study literature about new and existing products and monitor the sales, prices, and products of their competitors.
Manufacturers' agents who operate a sales agency must also manage their business. This requires organizational skills as well as knowledge of accounting, marketing, and administration.
Working Conditions
Some sales representatives have large territories
and travel considerably. A sales region may cover several States, so they may
be away from home for several days or weeks at a time. Others work near their
"home base" and travel mostly by automobile. Due to the nature of
the work and the amount of travel, sales representatives typically work more
than 40 hours per week.
Although the hours are long and often irregular, most sales representatives have the freedom to determine their own schedule. Consequently, they can arrange their appointments so they can have time off when they want it. Sales representatives are often on their feet for long periods and may carry heavy sample products, which necessitates some physical stamina.
Dealing with different types of people can be stimulating but demanding. Sales representatives often face competition from representatives of other companies. Companies usually set goals or quotas that representatives are expected to meet. Because their earnings depend on commissions, manufacturers' agents are also under the added pressure to maintain and expand their clientele.
Manufacturers' and wholesale sales representatives held about 1.9 million jobs in 2009. About half of all salaried representatives worked in wholesale trade. Others were employed in manufacturing, retail trade, information, and construction. Because of the diversity of products and services sold, employment opportunities are available in every part of the country in a wide range of industries.
In addition to those working directly for a firm, many sales representatives are self-employed manufacturers' agents. They often form small sales firms and work for a straight commission based on the value of their own sales. Usually, however, manufacturers' agents gain experience and recognition with a manufacturer or wholesaler before becoming self-employed.
Training, Qualifications, Adv.
The background needed for sales jobs varies
by product line and market. Most firms require a strong educational background
and increasingly prefer or require a bachelor's degree as the job requirements
have become more technical and analytical. Nevertheless, many employers still
hire individuals with previous sales experience who do not have a college degree.
For some consumer products, factors such as sales ability, personality, and
familiarity with brands are as important as a degree. On
the other hand, firms selling complex, technical products may require a technical
degree in addition to some sales experience. Many sales representatives attend
seminars in sales techniques or take courses in marketing, economics, communication,
or even a foreign language to provide the extra edge needed to make sales. In
general, companies are looking for the best and brightest individuals who have
the personality and desire to sell.
Many companies have formal training programs for beginning sales representatives lasting up to 2 years. However, most businesses are accelerating these programs to reduce costs and expedite the returns from training. In some programs, trainees rotate among jobs in plants and offices to learn all phases of production, installation, and distribution of the product. In others, trainees take formal classroom instruction at the plant, followed by on-the-job training under the supervision of a field sales manager. Some sales representatives complete certification courses to become Certified Professional Manufacturers' Representatives (CPMRs).
New workers may get training by accompanying experienced workers on their sales calls. As they gain familiarity with the firm's products and clients, these workers are given increasing responsibility until they are eventually assigned their own territory. As businesses experience greater competition, increased pressure is placed upon sales representatives to produce sales.
Sales representatives stay abreast of new products and the changing needs of their customers in a variety of ways. They attend trade shows where new products and technologies are showcased. They also attend conferences and conventions to meet other sales representatives and clients and discuss new product developments. In addition, the entire sales force may participate in company-sponsored meetings to review sales performance, product development, sales goals, and profitability.
Those who want to become sales representatives should be goal-oriented and persuasive, and work well both independently and as part of a team. A pleasant personality and appearance, the ability to communicate well with people, and problem-solving skills are highly valued. Furthermore, completing a sale can take several months and thus requires patience and perseverance.
Frequently, promotion takes the form of an assignment to a larger account or territory where commissions are likely to be greater. Experienced sales representatives may move into jobs as sales trainers, who instruct new employees on selling techniques and company policies and procedures. Those who have good sales records and leadership ability may advance to sales supervisor or district manager.
In addition to advancement opportunities within a firm, some manufacturers' agents go into business for themselves. Others find opportunities in purchasing, advertising, or marketing research.
Prospective customers will still require sales workers to demonstrate or illustrate the particulars about the good or service. However, computer technology makes them more effective and productive, for example, by allowing them to provide accurate and current information to customers during sales presentations. In addition, electronic commerce provides sales representatives another way to advertise and sell, thus requiring fewer sales representatives to do the same amount of work. Manufacturers are expected to continue outsourcing sales duties to independent agents rather than using in-house or direct selling personnel. To their advantage, these agents are more likely to work in a sales area or territory longer than representatives, creating a better working relationship and understanding of how customers operate their businesses. Agents are paid only if they sell, which reduces the overhead cost to their clients. Also, by using an agent who usually lends his or her services to more than one company, companies can share costs with the other companies involved with that agent. Those interested in this occupation should keep in mind that direct selling opportunities in manufacturing are likely to be best for products with strong demand. Furthermore, jobs will be most plentiful in small wholesale and manufacturing firms because a growing number of these companies will rely on agents to market their products as a way to control their costs and expand their customer base. Employment opportunities and earnings may fluctuate from year to year because sales are affected by changing economic conditions, legislative issues, and consumer preferences. Prospects will be best for those with the appropriate knowledge or technical expertise as well as the personal traits necessary for successful selling. Job Outlook
Employment of sales representatives, wholesale and manufacturing, is expected to for all occupations through the year 2010.
Compensation methods vary significantly by the type of firm and the product sold. Most employers use a combination of salary and commissions or salary plus bonus. Commissions usually are based on the amount of sales, whereas bonuses may depend on individual performance, on the performance of all sales workers in the group or district, or on the company's performance.
Median annual earnings of sales representatives, wholesale and manufacturing, technical and scientific products, were $58,580, including commissions, in May 2009. The middle 50 percent earned between $41,660 and $84,480 a year. The lowest 10 percent earned less than $30,270, and the highest 10 percent earned more than $114,540 a year. Median annual earnings in the industries employing the largest numbers of sales representatives, technical and scientific products, in May 2009 were as follows:
| Computer systems design and related services | $70,220 |
| Wholesale electronic markets and agents and brokers | 65,990 |
| Drugs and druggists' sundries merchant wholesalers | 60,130 |
| Professional and commercial equipment and supplies merchant wholesalers | 59,080 |
| Electrical and electronic goods merchant wholesalers | 52,870 |
Median annual earnings of sales representatives, wholesale and manufacturing, except technical and scientific products, were $45,400, including commission, in May 2009. The middle 50 percent earned between $32,640 and $65,260 a year. The lowest 10 percent earned less than $24,070, and the highest 10 percent earned more than $92,740 a year. Median annual earnings in the industries employing the largest numbers of sales representatives, except technical and scientific products, in May 2009 were as follows:
| Wholesale electronic markets and agents and brokers | $50,680 |
| Machinery, equipment, and supplies merchant wholesalers | 46,030 |
| Professional and commercial equipment and supplies merchant wholesalers | 45,320 |
| Grocery and related product wholesalers | 44,210 |
| Miscellaneous nondurable goods merchant wholesalers | 40,240 |
In addition to their earnings, sales representatives usually are reimbursed for expenses such as transportation costs, meals, hotels, and entertaining customers. They often receive benefits such as health and life insurance, pension plan, vacation and sick leave, personal use of a company car, and frequent flyer mileage. Some companies offer incentives such as free vacation trips or gifts for outstanding sales workers.
Unlike those working directly for a manufacturer or wholesaler, manufacturers' agents are paid strictly on commission and usually are not reimbursed for expenses. Depending on the type of product or products they are selling, their experience in the field, and the number of clients they have, they can earn significantly more or less than those working in direct sales.
Related Occupations
Sales representatives, wholesale and manufacturing, must have sales ability and knowledge of the products they sell.
Information on careers for manufacturers’ representatives and agents is available from:Sources of Additional Information