In these days of call centers and email when is a good time to use or create a sales force of sales reps? Are the costs justifiable versus the value created and increases in bottom lines? Or in the past were more bodies just a means of creating fiefdoms and increasing department budgets while obtaining tax deductions?
Sales reps can be used successfully and with creation of value in more than one way means. Instead of a firm it hiring staff within its own departments and purview staff can be outsourced locally within America to any of a number of independent agencies.
When should a firm or business consider this? First of all if a new product is aimed at markets outside the company’s established channels of distribution. Why is this so? Experienced sales and reps with solid contacts in the field can often create sales rapidly. It’s as if money is created out of thin air. A second scenario where outside sales agents may be introduced successfully is where a territory’s potential volume is deemed too small to consider a full time company salesperson. You have to consider that overall business can be done in an area where the costs of a full time company salesperson or rep cannot be justified. Your costs are subsidized by the other products the rep is carrying out in the field. Remember that the agent representing your line is as well representing several other suppliers in his marketing sales mix. They are making regular calls anyways. To a great extent you can tag along for very little cost. It is a win win situation,
Even in these days of computerized order and order taking systems, emails phones and faxes there are still some lucrative customers out there who just order infrequently and have to be called on. Perhaps they come from the old school and have been spoiled by previous levels of service that few provide. Perhaps they feel that their problems as they occur will be dealt with better and quicker. Perhaps they like the extra personal touch. The interesting thing is that for the most part these customers and their preferences have been forgotten about or even ignored by the advanced sales systems of most of your competitors. If they are a good buying potential and indeed if they are willing to reward you for making the calls , why not set up an independent sales agent to handle the account and cash in on this lucrative sales and profit niche.
Lastly one must remember the whole nature of the sales game – that is if a matter of payment to sale employee on a commission basis. If payment to the outside sales agent or agents is on a commission like basis it is in their direct benefit to make that sale or make that extra call. If sales are volatile in your industry and especially if it’s a low season or time it is downright amazing how an outside sales rep with built in incentive can bring in those sales at low times to even out your cash flow to help pay operating costs especially fixed costs.
In the end running a business or any enterprise is all about providing value. In certain cases the expenditure to hire outside sales reps is warranted and well worth the cost outlay and outlays to your firm, organization or business.
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