Whether you believe it or not, manufacturers representative agency and distributors are almost the same. Both of them sell goods made by manufacturers and neither is directly employed. What they are actually is an independent entity. The major difference however is that, distributors are selling and buying goods while these representatives only act as sales agent for manufacturers.
A typical distributor is buying goods directly from the manufacturer at a wholesale price and then, reselling it either to consumers or retail outlets. As a matter of fact, distributors take ownership of the product that they sell and they maintain inventory of it. It is the distributors who are in charge of getting the products to the retail stores and if that store requests for additional supply, they order it from the distributors instead of the manufacturer. It’s when how distributors make profit from their markup or simply put, the difference between what they pay to the manufacturer’s goods and to what is charged to their clients.
The sales, distribution and production require various levels of expertise to which Chaparral Technologies can provide. It is actually more efficient for manufacturers to turn into those functions to independent distributors and manufacturers representative agency and representatives instead of trying to build and maintain marketing channels on their own. This allows manufacturers to focus on what they are doing best which is making things.
In most cases, manufacturers representative agency and representatives are used. Basically, these sales agents or representatives are hired for circumstances when there is lack of sales force for manufacturers, when there’s new market the company wish to penetrate, whenever there’s a new product that needs to be introduced in the market and lastly, when it is more cost efficient for the company to get outsource than using their own personnel. Potential of sales can’t be simply justify the cost of using sales force of the company or the company may perhaps want to reduce the fixed cost risks of their internal sales force.
Aside from those mentioned benefits, some inc. companies and corporations are taking advantage of such service when a retail buyer needs dedicated sales as well as marketing support from the manufacturer.
The truth is, there are lots of great use for working with manufacturer’s representative agency. They are the one who can guarantee that everything’s properly set from beginning to end while establishing brand and awareness for the company they work for. So if you want to experience success, then working with such would be a very smart move to make.