How does a manufacturers’ representative differ from a direct sales rep?
Manufacturers’ representatives are under contract with the manufacturer to sell and service accounts in their territory. The manufacturer incurs no expense for marketing until their product is sold. The representative is then paid a commission based on the net price of the sale after the manufacturer has been paid by the customer. The biggest difference between a manufacturers’ representative and a direct sales force is the expense incurred by the manufacturer. They are obligated to pay a direct sales force whether they sell anything or not. This fixed expense is then passed on to the customer.
