We all have a pretty good idea of what it means to be a sales rep in the gift industry — but what if there was a new way for some major vendors, and large sales agencies representing key lines, to structure the role of their sales reps in the future?  A recent chance meeting with a young man in the sporting goods/outdoor industry gave me some insight into a different way of looking at what I assumed was the only way to do things.

Instead of being on a commission, this rep’s salary is paid by the sales agency he works for, with a bonus based on orders at the end of the year.  The companies that the agency represents each contribute towards his pay, with the written understanding that he will visit key retailers a certain number of times per year specifically on their behalf.

These visits are not all sales calls. He provides valued product training for staff, and also does occasional consumer events. Experience has shown, he mentioned, that store employees sell a significantly higher amount of goods from lines in which they’ve received specialized training. We have seen that in our store with The Thymes bath and body line, which has traditionally provided annual training and samples (although the company has unfortunately decided not to offer us that benefit this year).

In truth, very few of our vendors has ever offered any similar perk. One reason is that sales reps are traditionally rewarded for taking orders, not for other retailer support.  With the current commission system, time not spent with buyers is not paid. There is little incentive for sales reps, who are already hard pressed to make their quotas and cover their expenses, to volunteer for extra   duties.

The rep system is already threatened by the fact that buyers are ordering online and at out-of-territory shows. Accepting the fact that sales rep can play a role beyond order taking, and rewarding them with a salary for doing so, would help retailers sell more of the line that invest in retail support. Which would be a win-win for the vendor, the sales rep, and especially the shopkeeper.

Happy Retailing,

Carol “Orange” Schroeder

PS There won’t be a Specialty Shop Retailing blog next week due to the NY NOW gift show — and I am excited to announce that the blog has been moved to WordPress. That means it is now mobile-friendly, and also not subject to the potential crisis of iWeb suddenly disappearing. Thank you to Tyler McDonald for using his computer skills to transfer some 340 blog posts over to their new home (still at www.specialtyshopretailing.com).