California Sales Representatives Contract San Diego
Sales Representatives Contract San Diego Summary
Using sales representatives and distributors can be a complicated and high-risk endeavor for your business. However, with strong contractual control, sales representatives and distributors can be powerful resources to drive sales, especially for smaller businesses lacking the ability to pay full-time employees to promote products and without the ability to effectively reach clients globally. The major benefits to using sales representatives and distributors are:
• Sales representatives and distributors are paid on commissions only, without the need for salaries or benefits;
• Sales representatives and distributors pay advertising, travel, and overhead costs; and
• Sales representatives and distributors provide local representation into global marketplaces.
California Sales Representatives Contract San Diego Details
Sales Representatives Generally
Sales representatives are independent businesses or independent contractors who sell the goods and services of other businesses. As independent contractors, sales representatives control the time and effort of making sales and are also responsible for the costs associated with those sales efforts. Sales representatives are generally only compensated according to the sales completed.
Types of Sales Representatives
There are three primary types of sales representatives, namely (1) sales agents, (2) distributors, and (3) consignees.
Sales agents do not own the goods they sell but instead act as an agent on behalf of the seller. Under strict control of the manufacturer, sales agents will find buyers for goods, provide pre-sale support for the goods, assist in closing the sale and, depending upon the relationship between the seller and the sales agent, may even assist with warranty and non-warranty service and support of the goods sold.
Distributors purchase goods from manufacturers and resell those goods to retailers or wholesalers. Since the distributor actually gains title to the goods, distributors may set their own prices and, in some cases, it may be a violation of anti-trust laws if a manufacturer attempts to fix the prices at which distributors sell goods.
Sales representatives classified as consignees are sales representatives who are in possession of the goods they sell, like distributors, but without actually taking title to the goods, like a sales agent. Since a consignee does not have title to the goods, the manufacturer retains the right to set prices, terms, and conditions of sale without violating anti-trust laws.