There is a strong resemblance with the services offered by manufacturers representative agency and distributors. Both are selling goods that are made by the manufacturers and is neither employed directly by manufacturers. What they are actually is an independent entity. One of the biggest differences between distributors and representatives is that, the former buy and sell goods while the latter serve as sales agent for the manufacturers.
A common distributor buys good straight from the manufacturer at a wholesale price and reselling them either to the 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 is when how distributors are making profit from their markup or the difference between what it pays to the manufacturer for the goods and to what’s charged to their clients.
From distribution, production and sales as well, it all needs different level of expertise wherein Chaparral Technologies are expert of. 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 enables the manufacturer to just focus on what they do best, which is to make things.
The truth is, manufacturers representative agency and representatives is frequently used. These representatives or sales agents are hired normally for situations whenever there is lack of sales force for the manufacturer, whenever a new product has to be introduced in the market, when there is a new market that the company would want to enter but it is not yet developed in full for their sales force to be used and when it is more effective than using the company’s personnel. The possibility of making sales is unjustifiable to the cost of utilizing sales force of the company or it could be that the company is thinking of others ways on how they can diminish fixed cost risks of their internal sales force.
In addition to the aforementioned benefits, there are inc. companies and corporations that are making the most of these kinds of services when the retail buyer wants dedicated sales and marketing support from the manufacturer.
The truth is, there are lots of great use for working with manufacturer’s representative agency. They ensure that everything is properly set from start to finish while also establishing brand and awareness for company they’re working for. If you like to succeed, then it’ll be smart to work with such.