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Independent / Manufacturer Sales Rep

SkinsNDeacs

SkinsNDeacs

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Is anyone here an independent / manufacturer sales rep or have any experience in the field?

I am considering taking this step in my career. I have been in construction sales for 12+ years and I want to step out on my own. My current company might be headed in a direction I am not thrilled about so this could be my chance. I know a little about independent sales and I think it is something that would interest me. I just don't know how or where to get started. And as always with any lifetime decision...I come to The Pit to get advice from complete strangers.
 
Can you get a gig with companies that supplied your company?

Do you have other contacts?

Can you afford several months without income if you go the independent route?
 
RJKarl said:
Can you get a gig with companies that supplied your company?

Do you have other contacts?

Can you afford several months without income if you go the independent route?
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I could probably get a gig with companies that sale to my company but I think I am at a point where I want to work for myself. I know there are pitfalls there but I want to try it.

I definitely have contacts...I have been in this market for over a decade.

That is the real question. I think I would need a small start up loan to cover initial expenses and start up salary.
 
wakephan09 said:
Shit, what happened to the wine shop?
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We just could not make the numbers work. I think my wife and I would have been more open to take the risk until my son (aka The Dream Killer :) ) was born 7 months ago.
 
Me and a buddy of mine started an independent industrial air filter distributorship 8 years ago this year. We have been through the highs, very lows (great recession darn near killed us), and are on the way up again. We both had experience in our fields before we started this endeavor. Feel free to ask any and all questions here on this thread or PM me. As RJ stated, if you go this route the income in the beginning can be dicey.
 
Was an independent rep for almost 30 years in the home furnishings industry. Did very well until the domestic production was shifted to Asia and the quality control went to h...! Left the industry in '04. You are in fact an independent contractor relying on your companies ability to pay the commission you earn. Make certain that any companies you represent have decent credit and can (will) pay as promised. Need to have a good cash reserve to begin and or have a company give you a "draw" to assist with expenses.
 
DeacWatcher said:
Me and a buddy of mine started an independent industrial air filter distributorship 8 years ago this year. We have been through the highs, very lows (great recession darn near killed us), and are on the way up again. We both had experience in our fields before we started this endeavor. Feel free to ask any and all questions here on this thread or PM me. As RJ stated, if you go this route the income in the beginning can be dicey.
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Just a couple of questions...How did you decide on air filters? Did you have a location? How did you get started?
 
wakephan09 said:
Shit, what happened to the wine shop?
Click to expand...

baby2.gif
 
tbird said:
Was an independent rep for almost 30 years in the home furnishings industry. Did very well until the domestic production was shifted to Asia and the quality control went to h...! Left the industry in '04. You are in fact an independent contractor relying on your companies ability to pay the commission you earn. Make certain that any companies you represent have decent credit and can (will) pay as promised. Need to have a good cash reserve to begin and or have a company give you a "draw" to assist with expenses.
Click to expand...

Apart from getting payment (and that sounds like a giant pain in the ass) did you like it? Would you recommend it? Same question that I asked DeacWatcher...how did you get started?
 
If you go the Manufacturer Sales Rep - look around at different options, there should be opportunities to jump into it with an established base of clients - you also don't have to bare the brunt of the sales & marketing right upfront since you will be funneled leads from the OEM. The problem with the Manufacturer Sales Rep side is you may be limited in the products you can represent based on the contracts - not always, though.

The largest sales arm for my company are all Independent Reps working on 1099's with us - and when we hire a new one, they take over an area and have claim to all the existing accounts there that may have moved to an inside sales team or are being covered by an out of territory rep.
 
SkinsNDeacs said:
Apart from getting payment (and that sounds like a giant pain in the ass) did you like it? Would you recommend it? Same question that I asked DeacWatcher...how did you get started?
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I was involved in another industry (salary & expenses pd.) and one of my customers in Va. mfg. home furnishings. I worked from age 15 part time mfg. furniture in NC so I knew the mfg. process very well. My Va. customer knew this & offered a territory. I took advantage of the offer and had some lean and very good years. Income from month to month can vary
$5K-20k...so in the good mos. you always had reserves for the lean ones which invariably occurred. I had to pay my own expenses and even though I would have preferred while traveling staying @ a better end motel, I always searched the deals and got to know Tom Bodette i.e. Motel 6 fairly well...Today I know it is very difficult to break into any mfg. rep. position unless you have contacts and experience in the particular area. Some of my compatriots who are still traveling tell me the last 5 years have been brutal. Some did not make it as their customer base disappeared and many of the furniture mfgs. went out of biz...
If you are looking for individual businesses to possibly purchase, go to: http://www.bizbuysell.com/buy/ Interesting information may be helpful on that site. Good Luck in your search!
 
I worked for a manufactuer's rep in promotional furniture (bar stool manufacturer was our biggest client) until 97 because when I came out of school there was a terrible recession in accounting jobs. I saw the Asia writing on the wall and the life of an older sales rep trying to eek out a living and said no thanks. Got back into accounting.

Best decision of my life. It did land me on QVC once.

If you can get into a good gig with good companies to represent, then you are great. But its a very expendable occupation, and your commission is one of the easy corners to cut.
 
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SkinsNDeacs said:
Just a couple of questions...How did you decide on air filters? Did you have a location? How did you get started?
Click to expand...

I was in the fluid transfer (pumps, storage tanks, meters, liquid filtration) part of industrial sales for 10 years and my buddy was in air & paint filtration. It was his initial idea that we pool our knowledge but concentrate on HVAC, paint, dust, & liquid so we did. We have an office & warehouse located in Spartanburg, SC. Getting started we were rather green in all aspects of running a business as there are so many things you don't think of. First and foremost, you are going to need a good solid business plan especially if you plan to get a loan to get started. Your business plan is what you are hoping to accomplish and without one failure is almost guaranteed.

If you need the loan and succeed in getting one, spend it wisely as it will be gone before you know it. As someone above mentioned, try to have a cash reserve and pay yourself as little as possible. Define who your customers are going to be and how do you plan on attracting them. Our goal was to be a stocking HVAC & Paint filter distributor in upstate SC. At that time there was not one there as they were all in the lower part of the state. Its going to suck, but cold calling is part of the deal and it never ends as you will always need new customers. The paperwork is a nightmare and never ends no matter how "electronic" the business world gets. Get yourself a good accountant as that will save you some serious time and heartache.

I have tried to hit a few highlights above, but will be more than happy to answer more pointed questions. Some things have worked and others have not. We've unknowingly wasted some money and time over the years, but every playbook for starting your own business is different. Its not easy and I do everything from selling, light manufacturing of filters, delivering our product, chasing money (the really big customers pay terms suck as net 60 is the new norm) & even taking out the trash. It nice not working for the "man" but pretty difficult to keep everything rolling along. Oh and for the first 5 years I never took any vacation other than a long weekend or two.

Again, don't hesitate to ask as I wish we would have asked more questions before starting out.
 
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