Despite
the many economic benefits manufacturers gain by outsourcing field sales,
three persistent untruths continue to create resistance in some quarters
to using outsourced sales representatives. All three of these untruths
are easily addressed.
Part of this untruth requires an acceptance that electronic data interchange and e-commerce have made personal contact with customers unnecessary. It's a fact that aside from a contracted difference in price it is difficult for a distributor to be the advocate for your brand when he is also stocking and selling the products of your competitors; and often a private label brand too. Outsourced sales reps are part of the manufacturer's support system for distributors, working with them cooperatively, not competitively. Sometimes, outsourced sales reps even employ full-time people to create demand among customers of a specific distributor. By spending time with the distributors, outsourced sales reps can influence the selection and presentation of one company's products vs. all the others.
The advent of the Internet, EDI, and e-commerce has automated some of the customer service functions that may previously have been part of the outsourced sales rep's role. However, they cannot replace the valuable counsel and human connections that are central to field sales.
While they are often asked to live with short-term contracts, successful outsourced sales reps understand very well that they have to be personally invested in their territories and in their clientele. They view commitments from companies as long-term relationships that must be mutually profitable, but they especially value and are protective of their long-standing customer relationships. Outsourced sales reps seldom change territories and they know that a long-term perspective related to their only customer base is a must. They recognize that some sales take a long time to develop and, even when they materialize, shipments and payments may also be spread over a long period. Throughout this time, the outsourced sales rep, not the manufacturer, finances the visits, the hand-holding, and the negotiating process.
How much control the manufacturer wants is probably of more concern than how much the company really needs. The company sales manager who believes that any sales force, whether outsourced or factory-direct, needs to be led every step of the way creates a self-fulfilling prophecy!
It is true that outsourced sales reps do need to be managed, directed and, to some extent, motivated. In fact, positive motivation is probably the best way for a corporate sales manager to "control" his outsourced sales force! Establishing a partnering relationship, paying commissions on time, communicating the outsourced sales rep's value to all groups with whom the sales rep interfaces, and involving the sales rep in joint decision-making will always lead to getting a greater share of the sales rep's time than the commission income alone would buy.
Contact us today to learn more about the benefits of using professional outsourced sales representatives to grow your business.