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MAPP Plastics Discussion Forum

The MAPP Plastic Industry Discussion Forum allows members to rapidly communicate with each other. Post both questions and answers to questions that other MAPP members have about any industry topic from material and process issues to R&E Tax Credits and other business issues.

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Plastic Industry Forum - Converse with Plastics Processing Leaders / Business / Manufacturer Representative Compensation
Posted:  03 Aug 2016 15:24
We have used manufacturer reps for some time as well as we have an in house sales force. Can anyone provide me with general compensation structures you may have with reps? i.e.: flat %, new work only, trailing fees for repeat work etc.? Also how do you address incentives and compensation for the in-house sales force if the business came from the sales reps? I would like to speak with or receive a response from anyone willing to share.Thanks

George
Posted:  04 Aug 2016 17:37
I am interested as well in the responses.
Posted:  04 Aug 2016 17:45
We don't do not currently use rep groups, but I have in the past and paid them 5 - 6% on new business with a sliding scale down to 2% on maintenance business.  I also detailed the responsibilities and expectations for both parties to ensure there was no misconceptions regarding our support resources and that it was clear what our expectations were for their services to maintain commissions.   

Jeff
Posted:  04 Aug 2016 18:35
We have a 6 manufacturers reps that work with our company managing roughly half of our sales.  First off, we have a reasonable rep agreement in place that protects the reps from getting fired once they work to get the business in place.  2nd, we reserve the right to renegotiate commissions if the checks start getting too big.  I don't believe in automatic commission reductions - it really depends on how long it takes to begin the revenue stream with a new customer.  Some accounts take 3 years to develop so its not fair to start reducing commissions after one year of paying sales commission.  Remember, you have them working for you for 3 years for free (in that case) We start at 5% but if we chase the work to meet price targets the reps participate at that time (4%,3% instead of 5%) It's really about building trust, making reps feel part of your organization and also finding Reps that our wired into accounts. All reps for us are account to account - no territories.  Hope this helps.
Posted:  11 Aug 2016 17:17
We do not use outside sales reps.  We did way with that a few years ago. All of our reps were very good, we just felt we could handle it ourselves.  We have account managers who take care of our current customers and a business development manager who seeks out new opportunities as well as current customers.  It works very well for us.
Posted:  11 Aug 2016 17:27
I would like to see a couple of rep agreements. My experience is the rep finds a piece of business and once it gets going they disappear. Then we end up handling the customer our selves while still paying a commission. Does anybody use a finders fee or something similar?
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