How to Secure a Sales Contract for Your Company's Product

Gaining a contract for your company's product can be a key step in expanding your business. This article will guide you on how to approach potential buyers and secure a sales contract by demonstrating your expertise and value.

Understanding the Role of a Manufacturer’s Rep

When it comes to expanding your product range, leveraging the services of a Manufacturer’s Rep can be highly beneficial. A Manufacturer’s Rep acts as a middleman between your company and potential buyers. They are experts in sales and marketing and can bring significant value to the table.

A Manufacturer’s Rep typically earns a commission based on the sales made through their efforts. The commission rate can vary, but a common setup includes a 10% commission for products sold at the target price, with variations depending on the actual sale price. For higher sales, the commission can be higher, while for lower sales, it can be lower.

The Win-Win Scenario for Both Parties

The relationship between the Company-Principal and the Manufacturer’s Rep/Agent is characterized by mutual benefits. A well-estabilished working arrangement ensures that both parties focus on growing the business together.

A Manufacturer’s Rep has limited authority to act as an agent for the principal. However, they often possess significant credibility based on their extensive knowledge of the market and industry. This credibility can be leveraged to convince potential buyers of the value of the product.

For instance, consider a real-world example where a friend of mine recently entered the sales landscape as a Manufacturer’s Rep. He recognized a local company producing a product that could be valuable in a new market - the Steel/Metals industry. This new market was where the product had never been sold before.

Approaching a Company to Get Their Manufacturing Contract

Your approach should be strategic and confident. Here’s how you can secure a sales contract for your company's product:

Show Credibility and Expertise

Present yourself as an expert in sales and marketing. Highlight your experience and track record, if any. Explain how you understand the target market and what value your product brings to it. Demonstrate your ability to increase the company’s revenue through your sales strategies.

Propose a Unique Selling Point

When approaching a company to secure a sales contract, it's essential to identify a unique selling point. In the case of the steel/metals industry, the product offered by the local company had never been sold in this market before. This presented an untapped opportunity.

Your unique selling point could include:

New audience reach Innovative use of the product in a new industry Competitive pricing or superior quality

Work Out a Custom Rep Agreement

Besides just convincing the company, securing a sales contract also involves negotiating the terms of the agreement. A well-stated rep agreement is crucial and should be tailored to both parties' needs. The following are key elements to include:

Commission structure and payment terms Exclusive territory or non-exclusive agreement Product pricing and terms of sale octs and performance bonuses

Present the Benefits Clearly

To demonstrate the benefits of the product to potential buyers, ensure that you:

Highlight the advantages of your product over competitors Provide case studies or testimonials from pilot customers Demonstrate how the product can solve specific industry problems

Finalize and Execute the Agreement

After reaching a consensus, finalize the agreement and execute it. Ensure all parties involved understand their roles and responsibilities. A well-drafted contract should protect both the company and the Manufacturer's Rep.

In the example shared, the company was delighted to have new sales outlets without incurring additional costs. The Manufacturer’s Rep was elated to showcase the benefits of the product and expand his business network.

Closing Thoughts

Securing a sales contract for your company's product involves a well-thought-out strategy. By understanding the role of a Manufacturer's Rep, showing credibility, proposing a unique selling point, and executing a well-drafted agreement, you can achieve a win-win situation for both parties.