Sales representatives are an important part of manufacturers' and wholesalers' success. Regardless of the type of products they sell, sales representatives' primary duties are to make customers interested in their merchandise and to arrange the sale of that merchandise.
The process of promoting and selling a product can be extensive, at times taking up to several months. Whether in person or over the phone, sales representatives describe their products, conduct demonstrations, explain the benefits that their products convey, and answer any questions that their customers may have.
Sales representatives—sometimes called manufacturers’ representatives or manufacturers’ agents—generally work for manufacturers, wholesalers, or technical companies. Some work for a single organization, while others represent several companies and sell a range of products. Rather than selling goods directly to consumers, sales representatives deal with businesses, government agencies, and other organizations.
Sales representatives generally work in either inside sales, interacting with customers over the phone from an office location, or outside “field” sales, traveling to meet clients in person.
Inside sales representatives may spend a lot of their time on the phone, selling goods, taking orders, and resolving problems or complaints about the merchandise. These sales representatives typically do not leave the office. Frequently, they are responsible for acquiring new clients by “cold calling” various organizations—calling potential customers to establish an initial contact. They also may be responsible for arranging meetings for outside sales representatives.
Outside sales representatives spend much of their time traveling to, and visiting with, current clients and prospective buyers. During a sales call, they discuss the client's needs and suggest how their merchandise or services can meet those needs. They may show samples or catalogs that describe items their company provides, and they may inform customers about prices, availability, and ways in which their products can save money and boost productivity. Because many sales representatives sell several complementary products made by different manufacturers, they may take a broad approach to their customers' business. For example, sales representatives may help install new equipment and train employees in its use.
Hours: In 2008, about 48 percent of sales representatives worked around 40 hours per week, but about 24 percent worked more than 50 hours per week. Since sales calls take place during regular working hours, much of the planning and paperwork involved with sales must be completed during the evening and on weekends. Although the hours are often irregular, many sales representatives have the freedom to determine their own schedules.
Opportunity: Job prospects will be best for those with a college degree, the appropriate technical expertise, and the personal traits necessary for successful selling. Opportunities will be better in independent sales companies than with manufacturers, who are expected to continue contracting out field sales duties. Employment opportunities and earnings may fluctuate from year to year because sales are affected by changing economic conditions and businesses’ preferences. In addition, many job openings will result from the need to replace workers who transfer to other occupations or leave the labor force.
Pay: Median annual wages of sales representatives, wholesale and manufacturing, technical and scientific products, were $70,200, including commissions, in May 2008. The middle 50 percent earned between $48,540 and $99,570 a year. The lowest 10 percent earned less than $34,980, and the highest 10 percent earned more than $133,040 a year.Median annual wages of sales representatives, wholesale and manufacturing, except technical and scientific products, were $51,330, including commission, in May 2008. The middle 50 percent earned between $36,460 and $75,120 a year. The lowest 10 percent earned less than $26,950, and the highest 10 percent earned more than $106,040 a year. Compensation methods for representatives vary significantly by the type of firm and the product sold. Most employers use a combination of salary and commissions or salary plus bonus. Commissions usually are based on the value of sales, whereas bonuses may depend on individual performance, on the performance of all sales workers in the group or district, or on the company's performance. Unlike those working directly for a manufacturer or wholesaler, sales representatives working for an independent sales company usually are not reimbursed for expenses. Depending on the type of product or products they are selling, their experience in the field, and the number of clients they have, they can earn significantly more or less than those working in direct sales for a manufacturer or wholesaler. In addition to receiving their earnings, sales representatives working directly for a manufacturer or wholesaler usually are reimbursed for expenses such as the costs of transportation, meals, hotels, and entertaining customers. They often receive benefits, including personal use of a company car and frequent flyer mileage. Some companies offer incentives such as free vacation trips or gifts for achieving an outstanding sales performance.
Training: There usually is no formal educational requirement for sales representatives. Some positions, especially those which deal with scientific and technical products, require a bachelor's degree. For other jobs, however, applicants can be fully qualified with a high school diploma or its equivalent. For these positions, previous sales experience may be desirable. Many sales representatives attend seminars in sales techniques or take courses in marketing, economics, communication, or even a foreign language to provide the extra edge needed to make sales. Often, companies have formal training programs for beginning sales representatives that last up to 2 years. However, most businesses accelerate these programs to much shorter timeframes in order to reduce costs and expedite the returns from training. In some programs, trainees rotate among jobs in plants and offices to learn all phases of production, installation, and distribution of the product. In others, trainees take formal classroom instruction at the plant, followed by on-the-job training under the supervision of a field sales manager.
Citation: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11 Edition, Sales Representatives, Wholesale and Manufacturing, on the Internet at http://www.bls.gov/oco/ocos119.htm (visited December 22, 2010).
