The Benefits to you of Employing Sales Agents

PRIME COST ADVANTAGE

By employing Sales Agents you are getting:

  • very low recruitment costs
  • fixed cost sales*
  • variable overhead: no sales = no pay
  • low sales management costs

*an Agent's sales are fixed cost sales. All you have to do is add the commission to your costs.

 

By contrast...

The cost to companies of actually employing and putting salespeople (reps) on the road is very considerable and variable. Many of these costs are incurred before the salesperson has even set foot in the door of a customer let alone shown a profit on the orders he gets. If the salesperson is ineffective it may take many months to find this out but salary and costs have to be paid during this time.

 

The costs of employing salespeople (reps) include:

  • high recruitment costs (20% to 25% of salary, typically £5k to £10k!)
  • monthly fixed salary
  • commission and bonuses on top
  • costs of provision of office accommodation and equipment (desk, chair, PC etc)
  • vehicle costs
  • fuel costs
  • telephone expenses
  • employers national insurance
  • possible hotel costs
  • non-productive initial period
  • sales management costs
  • other costs such as training, holiday pay, sick pay, pension scheme contributions, etc

Because these costs and the income from sales are variable a company cannot calculate the true cost of a salesperson into its price structure. They usually make an educated guess, but estimates of £50k to £100k per year are rarely disputed.

 

 

BRINGING YOU A NEW CUSTOMER BASE

Most sales agents choose to work in the industry they have sold in for some time. The sales agent therefore has customers who have been visited for a long time and who buy regularly. Even if the agent does not necessarily do business with a company, they know it exists, who is the decision maker and that it is a prospect. This is a major benefit to a Principle. Sales Agents could be bringing you an extra, new, potential, customer base immediately. Also as they have probably built up a customer base with their other agencies, you are getting immediate access to them.

 

They could bring you:

  • market knowledge in your chosen area
  • access to his existing customer base
  • his credibility attached to your offer

 

THE SALES AGENTS CREDIBILITY BENEFIT

It is a fact that 'people buy people', meaning that most buyers, all things being equal, buy from salespeople they like and respect. A sales agent will come to know this more than most salespeople. Respect is always their aim. Most sales agents build up a base of existing customers who buy, or are at least prepared to listen about, further products from the sales agent. They respect the agent's judgement.

 

If you are selling into an unknown market area you will not be paying out salaries while a salesperson finds out who the buyers are.

 

 

ASSISTING PRODUCT BIASED COMPANIES

Many companies are what could be described as product biased. This means they are very good at producing the product or service but are not very skilful at selling. Many Principals possibly do not come from a selling background or have formed the company in the hope that sales will just appear. Many companies may have spent too much money developing the product or service and do not have enough left over to employ salespeople. A Sales Agent has a tremendous amount to offer such companies.

 

The Sales Agents advantages.

  • he can bring in immediate selling skills
  • he can advise on how best to present the offer

 

CONCLUSION:

Employing Sales Agents is an ideal way to start a business or launch a new product with the minimum start-up costs. Often it is not only the lowest cost option, but can simply be the best strategy when trying to open up markets where a pre-existing customer relationship is key.

Our Clients are saying...

"I was most satisfied with your support and follow through during our listing, and would have no hesitation using your service in the future should we require additional agents..."

 

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