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The role of the rep
As trading is getting tougher, Ian James, head of marketing at Foremost, looks at the relationship pros have with the sales representatives
Published:  03 February, 2009

A word of advice for the pro: If you have any sales reps who are just occasional order takers and nothing more, ring up the distributor or supplier, let them know you will phone or mail your orders in from now on, and that the rep is no longer required. Make sure you point out you are making a salary and cost of call saving for the supplier, and that you'll be looking for an appropriate, additional discount. If the supplier tells you there's no salary saving because the rep still has to call on other retailers, then point out that the other retailers should be paying for it, not you.

If the sales rep is expected to provide product education and announcements, then it's time to question that role as well. With email announcements, email interaction and websites it is now quite possible for you to stay up to date without the cost of a rep visit or the impact on your work hours.

If you've got a sales rep who sits down with you and plans the potential sales and profit margins you will make on the product range, and provides you with pricing, promotion and merchandising advice, then the relationship looks a little more valuable.

If you and the rep then review the actual sales through the season, with the rep assisting with special promotions and sales events to clear slower than expected sellers; and if he or she contributes with budget to allow for mark-downs without any loss of sales margin; and if they then look to swap out or remove over-stocks to ensure you are carrying winners in your store; then you have a relationship with a sales rep that is good for your business.

In fact, it's also good for the supplier's business as well. I've yet to meet a CEO or general manager of a supplier who doesn't expect the sales rep to play a role in supporting the sell through of product.




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