Sales Reps

[kandleindulgence]

Hello All,

I have a few questions about independent sales reps. I use to have a consultant program where I had about 12 or 15 independent sales reps. The majority of them signed up to be able to purchase my products at a discounted rate. A lot of them tried to sell the products online but had extreme difficulty because the market is so saturated with candle companies.

I would like to hear from those that have sales reps and how has it worked for you as well as a few other questions:

1. Do you offer incentives? What kinds, i.e. cash or product incentive?
   
2. Did you charge a start-up fee?
   
3. Were your reps required to purchase a kit?
   
4. How do you keep them motivated?

I appreciate your responses. I don't think I'm interested again in have reps but was curious to see if it's really working for smaller companies.

All the Best,

Jameel

[Luminarias]

We have sales reps. and it was the best decision our company has made. Our consultants receive our products at a 40% discount and added to the fact we keep low price points, they are doing very well. We have a starter kit that a consultant is required to purchase for $32.95(no other fees are required). We are starting a newsletter in January and hope it helps in keeping the consultants motivated. With it being the Holiday season sales are coming easy for our consultants; so little motivation is needed at this time.

Hope this helps and best of luck to you...

Luminarias

www.candlesbyluminarias.net

[banirs]

We would like to add sales reps, how do you market for your reps

Thanks Rick

[kandleindulgence]

Hi Rick,

When I had reps I advertised on a lot of the groups I belonged to. But see it depends on what route you're trying take when bringing on reps. Are you looking to have your reps build a downline? Ideally, you would be targeting stay-at-moms/dads or anyone looking to earn extra money that would bring in retail orders, fundraisers, etc..

On the flip side, you may be interested in hiring professional sales reps that would represent your product line and go out to get the wholesale companies for you. These type of reps will right $50K-$100K orders and are looking for companies that are unique and can accommodate such large orders. Check out www.greatrep.com. You can post an ad for about $45 a month requesting company representation.

All the Best,

Jameel

[Luminarias]

We didn't belong to any groups so we advertised in two ways...first, we advertised on local and surrounding area "Craigslists" which was very successful for us. We also advertised at our annual shows; however the consultants themselves really are the key. If you offer a great residual program, along with a great product finding consultants will be easy for you.

www.candlesbyluminarias.net

[mizbizzyb]

What does everyone use to put their kits in for the reps?

[dcroome2005]

I have sales reps but never thought of having a kit for them.. Hmmm. Wondering myself what you put in yours..

[LynnS]

I just got my first independent sale rep last month. She is out of state and interested im my candles.It started with first her liking the cost.Getting Free shipping for $50.00 order just to try my candles and also me going out of my way to find her 2 scents she loved. Now they are sellers for me.

So far we are just getting started. She is having 2 parties this month. Her own parties. She hasn't mentioned if she will book with other people being the hostess.That is up to her.If it is her alone I guess I do offer a incenative.Didn't think about that. If she wants to book parties I guess she pays wholesale for that gift or gifts. I will mention to her about others booking a party and some incentative to offer them.

She is also thinking about opening up her house for selling. Has asked to buy all my leftover candles after shows. That will be discussed later .She is experienced with sales because was a distributor for a company but didn't do good.(not candles though)

So glad this was posted because just the question I was going to ask. I was told yesterday she must offer incenatives to her hostesses if they have a party but so far it is her parties.The lady who told me that is a candle distributor for a big company. I haven't offered any incenatives but she gets some goodies with her order (samples). Wanted her to have plenty for the shows this month.

I am so happy she is out of state because she would not do good in Ohio.She gets them at wholesale cost and can re-sell for a profit. Not so in this area. Her first order was gone in 2 days. Not huge but she placed another small one for the same scented candles within the 2 days.

Good info

LynnS

Forgot One question??? I just paid my insurance but what about her?Do I need to have it for her. If problem with my candles she sells it will be covered. She has business cards with independent sales agent.

[kandleindulgence]

Hi LynnS,

Congratulations on your new sales rep! As long as you have insurance for your business then your products are covered regardless of your rep selling it. She is considered an independent rep so you are under no obligations in providing insurance or any other type of benefit that is commonly received when a person is considered an employee of your company.

All the Best,

Jameel

[LynnS]

Jameel,

Thank You good to know about insurance and having independent sales reps.

To me the way to go.

One more question? Do I need to have her sign a wholesale contract. I have one and this is the way she has started buying.A couple small orders so far.

LynnS

[Kymber]

Our Sales Rep doesn't do parties. He calls on stores and presents our products and picks up WS accounts for us. The going rate for a Sales Rep is 15% of the total WS order. My Sales Rep didn't purchase a Kit I set one up for him....it is checked out to him. There aren't really incentives as far as a actual Sales Rep...they get 15%. I have never gone the route of Consultants that do parties and sell my product on their own so can't really answer any Consultant/Party Hostess questions.

[Holly]

Our Sales Rep doesn't do parties. He calls on stores and presents our products and picks up WS accounts for us. The going rate for a Sales Rep is 15% of the total WS order. My Sales Rep didn't purchase a Kit I set one up for him....it is checked out to him. There aren't really incentives as far as a actual Sales Rep...they get 15%. I have never gone the route of Consultants that do parties and sell my product on their own so can't really answer any Consultant/Party Hostess questions.

Hi,

I am curious....after they obtain a wholesale account for you and get 15% of the total WS order, what do they get in the future with future orders from that store, if anything? I would think that they would lose incentive if they only get the 15% once and down the road would run out of stores to hit. But then again for the candlemaker we already make less for a wholesale order and then if you add 15% on top of that with every order in the future, it would seem like a lot of work for us for so much less. I do not know how most reps are paid. I understand the consultant program but not the "reps"....just now looking into it. Thanks for info.

[Vicky_CO]

Actually you actively encourage the store to continue to order through the rep. If they try to end run around the rep for a better deal just don't give it to them. Your rep is the one that will visit the store regularly to see if they need any more candles or what ever they are selling.

Most rep from what I understand make an agreement that as long as the are reps for you any retailer's sales that come through them you can not take direct orders from that retailer. I know some rep want territories meaning if a company in say Maddison county wanted to order candle from you, they would have to contact your sales rep for that area or you would have to give the sales rep the percent from that order even if the retailer had never heard of or been contacted by your rep.

I have thought about sales rep a lot, one of the things I came up with is the rep has to turn in a contact sheet with the name, phone # and contact person for each store they contact so the retailer does not do an end run around them and any one of retailer on that list has to go to the rep to order. You could also do random calls of the list to do a quick survey about your rep. That would keep your rep honest and not hand in names and phones of fake calls.

[Holly]

Thanks so much Vicky. This helps out a lot. I need to look into it more and decide if this is a route I would like to take. I am so busy making candles, doing shows that I just never seem to find the time to market myself very well. Also, I am not the most comfortable tooting my own horn. I mean I believe I have a great product, but I just am not a very good sales person.....especially my own product. I just let them sell themselves, keep honest and work hard to keep my customers happy. This has worked great for me. Although, they cannot sell thenselves into the stores all the time. What I have so far has but that can't always be. The main determining factor for me will be the cost of Rep fees on top of the wholesale discount. Would it be worth it? Thanks again, and if you decide to go this route I wish you success!

Actually you actively encourage the store to continue to order through the rep. If they try to end run around the rep for a better deal just don't give it to them. Your rep is the one that will visit the store regularly to see if they need any more candles or what ever they are selling.

Most rep from what I understand make an agreement that as long as the are reps for you any retailer's sales that come through them you can not take direct orders from that retailer. I know some rep want territories meaning if a company in say Maddison county wanted to order candle from you, they would have to contact your sales rep for that area or you would have to give the sales rep the percent from that order even if the retailer had never heard of or been contacted by your rep.

I have thought about sales rep a lot, one of the things I came up with is the rep has to turn in a contact sheet with the name, phone # and contact person for each store they contact so the retailer does not do an end run around them and any one of retailer on that list has to go to the rep to order. You could also do random calls of the list to do a quick survey about your rep. That would keep your rep honest and not hand in names and phones of fake calls.