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Subject:
Industry practices
Category: Business and Money > Small Businesses Asked by: boomering-ga List Price: $20.00 |
Posted:
29 Jan 2003 21:24 PST
Expires: 04 Feb 2003 15:52 PST Question ID: 155106 |
I have a job opportunity to be a manufacturer's rep, and it will require the use of a piece of equipment made by the manufacturer, an analyzer of sorts, and unique to that manufacturer. I will be selling the company's services and products, and the analyzer will be an essential tool in making these sales. My compensation will be straight commission. The manufacturer wants to sell me this equipment at a reduced price, but still at a substantial profit. I've explained that because I am on the same team, because I'm trying to build a business which will directly benefit the company, the equipment should be provided no-charge, or at least at direct cost and paid for over time, and payments should be charged against my commission, not out-of-pocket. This is a new approach for the manufacturer, so there is no precedent. Since I won't be paid salary or expenses, and since it will take some time to build the business, an additional burden (i.e., large out-of-pocket monthly payments) will not enhance my chances for success. This analyser lists for $30,000, but the cost to manufacture it is probably around $5,000. My question is this: Am I making a reasonable request, and how are similar situations handled in industry? I'm looking for analogous situations which will back my position. |
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There is no answer at this time. |
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Subject:
Re: Industry practices
From: omnivorous-ga on 30 Jan 2003 15:20 PST |
Boomering -- Let's see: the company isn't making its numbers, so it doubles the number of reps (cutting everyone's territory in half) and pumps the number of "sales" up simultaneously. This is a risk reps can't carry, particularly for capital equipment. Manufacturers' reps and company sales people always get demo units; resellers (distributors and retailers) have to pay for them, though they routinely get inventory protection against discontinuances and price changes. And of course, they're buying at deep discounts. New companies without any demonstrated market are under a particular onus to make sure demonstrators are available to their reps AND resellers at no charge. You'll find it's such a standard practice that a Google search discussing use of manufacturer's reps note that samples, literature and case histories are expected to be provided. Knowing that you're in Chicago, you might want to call Jack Berman, probably the best-known person in the rep business. He's at: Electronic Representatives Association http://www.era.org/whatisera/indexA.shtml (312) 527-3050 Best regards, Omnivorous-GA |
Subject:
Re: Industry practices
From: boomering-ga on 01 Feb 2003 13:30 PST |
Omniverous, Thanks for the comment; I'll try Jack Berman and see if he can give me a little perspective. Best Regards, Boomering |
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