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I have a problem....


HeavenScentU

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I just received an order from my rep. and it is from a local store that I have been dealing with for almost a year on my own. The problem is I had the account from this store first before I ever signed a contract with my rep. No contract with the local store. Do I have an obligation to pay the 15% to the rep. or what??? I am kinda upset the store owner which I had been dealing with directly went with my rep. I am confused!!!!:confused: Is this a learning experience that next time I deal with someone I need to have them sign a contract that they will go directly through me and not my rep....

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Here's my thought.

If you have multiple sales reps, they shouldn't overlap as far as areas. So, one rep cannot take another reps possibilities. I feel the same about this situation. All you have to do is let the rep know that you were the rep for this store and that the store is already a customer. You can give your rep the 15% for this sale, but let her know that you already have a relationship with the store yourself, and would like to continue with it. And any further orders will be directly through you. This way, you keep the rep happy, the client happy, and you happy.

JMO

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Don't put the burden on the store--they should be able to go what ever route is most convenient for them. The burden should have been on you to think of these things first. I know, a lot of things never occur to you until after the fact, but now it's a lesson learned.

Some businesses will have contracts that exclude commission to sales reps on accounts already in existence, and give commission only on sales to new accounts. Your rep should have received a list of accounts when she was hired for the job.

If this account was already ordering from you on a regular basis, I see no need to quite some time since they ordered, then perhaps you should pay commission. Another alternative is to pay commission, but on a lesser scale (maybe 1/2 to 1/4) of the regular amount.

Whatever you decide I suggest you sit down with your rep now to address the issue before it happens again.

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Yup. both the merchant and sales rep. know what of my relationship with them, but speaking with the merchant they were just on the sales reps. online website and just ordered what they needed. So I will pay the 15% fee and just deal with it. It is my fault that I didn't have the merchant sign a contract with me that states she would buy directly through me only for my candle products. That is why the sales rep. asked me if I had a contract with this store. Oh well, live and learn. I am working on revising my contract so this won't happen again.

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This business arrangement seems unusual to me. In my business dealings, I am free to order directly from the vendor or through a rep. I have never ever seen any type of agreement from any merchant specifying how I must order my products. Companies can send reps to my store and I can order through them, or I can go online and order. I have had a rep tell me that it doesn't matter if I go online or not, because they will still be getting a commission since I was their assigned account. Of course, they would rather I deal with them personally, because they can show me all of their new stuff, etc. Most of the time I prefer to order online just because I don't like the reps wasting my day and trying to sell me things I don't want.

I tell you this just because I'm certain that in most cases, this situation is resolved between supplier and their rep, not the supplier and the merchant. Telling the merchant they must order from you and not a rep seems unprofessional. I think I understand why you want it that way--to avoid having to pay commission, but I don't think many businesses are actually told how they have to order.

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Maybe I blew it out of proportion, but I did review my contract with the sales rep. and it does state that if I go out and seek merchants on my own that I wouldn't give any commission to the sales rep. I will only pay the rep. if she goes and finds merchants to sell my products. I specifically put that in the contract because whenever I travel I try to get new clients.

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