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A manufacturer's representative (rep), also known as an independent sales representative or sales agent, is a sales agency or company that sells and markets a manufacturer's products to wholesale customers. Basically, we are the sales marketing arm of manufacturers.
Manufacturer's representatives and distributors are similar in several ways: Both sell goods made by manufacturers, and neither is directly employed by those manufacturers. The key difference is that distributors actually buy and sell goods, while "reps" act only as sales agents for the manufacturer.
A sales representative contract is a legal agreement between a particular company and the sales executive/representative who acts on the company's behalf to execute sales services. It provides clear guidelines for the terms of employment, compensation, and termination.
These agreements outline the terms and conditions of the relationship between the manufacturer and the representative, ensuring that both parties understand their rights and responsibilities.
In addition to selling products, wholesale and manufacturing sales representatives analyze sales statistics, prepare reports, and handle administrative duties such as filing expense accounts, scheduling appointments, and making travel plans.
In its basic form, a manufacturers' representative is any individual who agrees to represent a company and sell their product or services on a straight percentage fee, which is automatically added to the selling price of their product or service. This is commonly known as straight commission selling.