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5 tips to consider when hiring a sales reps

30 April 2014 9 CommentsBy Sarah Shaw

5 tips for hiring sales repsWhen and if you decide to hire sales reps, I have a few tips to offer to make sure you sound savvy! They will most likely have a contract for you to sign, and that is normal, but be sure to note a few of my suggestions below so you get the best deal possible.

1. They will probably ask for free samples.  That is normal. But be sure they have to pay you cost to replace anything that is lost or damaged.

2. They will require that you provide them with catalogs and/or linesheets.  And YES, you do need to do that and mail them to the office.  They will not print them for you.  Ask them to email the linesheets when possible of course.

3. They may require you to participate in Tradeshows.  If this is out of your budget, try to negotiate to attend "some" instead of all.

4. Some will have showroom fees that are monthly payments on top of commission.  Be sure to ask about that before getting too excited.  This can be negotiated as well in some instances.  If you are hiring a Road Rep, they should only ask for commission on sales.

5.  When paying commission, never pay in advance.  Only pay for invoices that you have been paid for.  You can use this Sample Commission form to help you keep track of paid invoices.  Send one each month to your rep with the payment.

Hope this makes you sounds like a super savvy entreprenette.

xoxo

Sarah

 

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9 Comments »

  • Eli said:

    This is great and useful. Thank you.

  • maslinda said:

    super useful info, thanks Sarah!

  • Sarah Shaw (author) said:

    Thanks ladies!

     

  • Natalia said:

    Hi Sarah,

    I love all the advise you offer, it's truly helpful!!

    I am currently working on my budget to workout my wholesale price, in the begining I want to do sales on my own, however to truly grow I believe I will have to outsource this job to get into more stores to help my business expand. Even though I will be doing sales myself at the start I want to factor in the costs of a sales team to not have issues with my wholesale price in the future – am I approaching this right?  What is the typical percentage of comission and monthly show room fee a fashion sales agency will charge?

    Thanks for all your help!

    Natalia

  • Sarah Shaw (author) said:

    Natalia

    Thanks for your note.  Reps usually get between 10-15% depending on what you are selling. And as for fees…..that can vary from $500/mo in NYC to $200 in another city.

    Sarah

  • Natalia said:

    Thanks Sarah, much appreciated!

  • Hass said:

    Hi Sarah

    Thanks for this information it was very useful. Can you please give me some tips on where to find a sales rep? 

    Thanks

    Hass

     

  • Sarah Shaw (author) said:

    Hass,

    Check out my other blogs on sales reps.  http://theentreprenettegazette.com/category/sales-reps/

    Sarah

  • Hass said:

    Thanks much Sarah!!

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