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RUBEN & COMPANY
Ruben & Company is the premier agent for security related sales representation.
Cost Comparison - Sales Staff or Representation
COSTS BEFORE ANY SALES ARE COMPLETED
Company Salesperson Manufacturers' Rep Salary none Medical Insurance none Employment Taxes none Retainers none Sales Staff Training none Supervision and review none Workers Compensation none Insurance none
COSTS ASSOCIATED WITH SALES
- Commissions Commissions (only)
- Expenses X
- Bonuses X
- Incentives X
ONGOING COSTS NOT DIRECTLY RELATED TO SALES
- Pension X
- Retirement X
- Vacation Time X
- Sick Time X
- Flex Time X
- Family Leave/Sabbatical X
CONNECTION TO CUSTOMERS
- A single line with limited contact outside of current customers; developing customer relationships is costly.
- A diverse group of products that appeal to a large customer base with deep relationships throughout the industry.
What are the Advantages of Using a Rep Firm?
Lower Direct and Indirect Costs
The table to the right shows a thorough comparison of the costs associated with maintaining a sales staff as compared to using a rep firm.
Lower Administrative and Management Costs
Maintaining a sales staff can be a drain on vital company resources in ways that are difficult to measure; a rep firm eliminates these as well as training
and turnover costs.
Simplified Planning and Budgeting
With fixed commissions on sales as the only cost associated with sales, it is much easier to predict overall costs.
Motivated Representation
The rep firm and their associates are motivated to work consistently and persistently to grow sales since their personal success depends on moving products and being effective.
Seasoned, Knowledgeable and Connected
Rep firms have experienced and well trained staff and there is immediate access to an expanded customer base through the rep firms existing relationships. Understanding of and experience in the overall industry with knowledge of the local territory adds context and allows reps to discover new opportunities that a sales staff may overlook.
Marketing Flexibility
Using a rep firm allows manufacturers to quickly launch marketing initiatives and in many cases reps can increase volume by developing customers in new channels that would be costly to reach.
Cost Comparison – Sales Staff or Representation
Costs Before Any Sales are Completed
| Company Salesperson | Manufacturers’ Rep |
|---|---|
| Salary | none |
| Medical Insurance | none |
| Employment Taxes | none |
| Retainers | none |
| Sales Staff Training | none |
| Supervision and review | none |
| Workers Compensation | none |
| Insurance | none |
Costs Associated with Sales
| Company Salesperson | Manufacturers’ Rep |
|---|---|
| Commissions | Commissions (only) |
| Expenses | none |
| Bonuses | none |
| Incentives | none |
Ongoing Costs Not Directly Related to Sales
| Company Salesperson | Manufacturers’ Rep |
|---|---|
| Pension | none |
| Retirement | none |
| Vacation Time | none |
| Sick Time | none |
| Flex Time | none |
| Family Leave/Sabbatical | none |
Connection to Customers
| Company Salesperson | Manufacturers’ Rep |
|---|---|
| A single line with limited contact outside of current customers; developing customer relationships is costly. |
A diverse group of products that appeal to a large customer base with deep relationships throughout the industry. |