What is a manufacturer's representative?
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Global Resources for Industrial Projects (GRIP) Inc., Delta, BC
Posted on Nov 27, 2018
What is a manufacturer's representative (aka rep) and what purpose to do they serve?
Before answering that question we should consider that equipment manufacturers generally opeate from one location. They can closely monitor production, assembly and overhead costs. Raw material costs such as steel and wear materials and buy-out components such as bearings, conveying elements and drive components are always a concern as they can fluctuate. Freight costs vary according to distance to market and availability.
Manufacturers need to retain profits while maintaining and expanding their customer base nationally and internationally. How can they reach out to potential customers in so many different areas without stretching their budget and adding too many in-house employees which may not always be needed?
Enter the manufacturer's representative! Here is someone living in an area and operating within the time zone of potential customers in many different locales. Often the rep already has significant contacts in the territory as they have been representing other equipment manufacturers for some time. The rep has local industry knowledge, understands the business culture and can visit the customer much easier than the manufacturer. One of the most attractive features of a manufacturer's representative to an equipment manufacturer is that they cost absolutely nothing until a sale is made. Then, and only as the manufacturer is already paid out by the equipment purchaser, the rep receives commission payments from the manufacturer. Marketing costs are reduced considerably and some of these savings are passed on to the customer.
All equipment guarantees are secure with the equipment manufacturer who can provide their own professional installation and commissioning assistance as well as ongoing technical and replacement parts support from the factory. A local rep is keenly interested in customer satisfaction. Why? This is because our best sales tool is a happy, satisifed customer! We love it when a customer has actually forgotten they have a piece of equipment operating in their plant because it is safe, reliable and requires little maintenance.
Sometimes a customer requires equipment outside of the usual scope of the manufacturer's representative due to the nature of the application or the location of the facility. In this case a rep may refer you elsewhere or they may source it through their extensive network of suppliers.
So now that you know a bit more about equipment manufacturers and how they save costs and provide an important link between a customer and an equipment manufacturer, don't hesitate to contact them and get them involved in sourcing equipment for your projects.
