Benefits of Contracting with Independent Sales Representatives
This year's featured leaders illustrate medtech's ability to adapt and thrive in an ever-changing business environment.
September 1, 2008
ADVERTISING, DISTRIBUTION, & SALES
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Independent sales reps are all businesses in their own right, offering a level of experience and an objective market perspective that direct reps generally do not. Advantages they can bring to medtech companies with which they contract include the following.
Selling in one territory is their life. This means they offer the attractions of customer continuity, closeness to those customers, and knowledge of customer processes. They usually have a proven ability to manage relationships.
Independent reps, because they are selling a number of product lines, can theoretically lend synergistic strength to the sales effort. They provide the potential for more selling hours devoted to the company's products, in-depth coverage of accounts, the ability to package products into systems, and extra advertising and promotional leverage. As independent businesspeople, they may give the medtech company's executives more-objective feedback than direct reps will.
They are willing to supply systems or turnkey solutions that satisfy local needs.
They can provide fast access to new or marginal markets.
Financial advantages accrue from the use of independent reps because of their nonemployee status. They do not restrict cash flow, they represent a variable rather than fixed expense that is tied entirely to sales success, and they influence the balance sheet only positively.
Their experience qualifies independent reps as a business advisory source.
The company can benefit from positioning with complementary products.
Copyright ©2008 MX
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