Outsource?
"Outsourcing remains a hot topic for businesses around the world, principally because of its ability to significantly reduce operating expenses by 25% to 60%. Companies, both large and small, should consider outsourcing particularly for activities that are not required to be located on site."
- 2006 North American Outsourcing Market Report

Due to the high costs of hiring, training and funding in-house, full-time sales representatives, in most cases, it is more profitable to outsource much of the professional field sales functions.  The benefit proposition has increased in using an outsourced sales model for companies whose core competency is engineering and technical manufacturing.  

Technical manufacturing companies have several different channels through which they are able to sell their products or services to customers (OEMs/end user).    (Research from the American Management Association)  The following models represent how different company structures call for different sales force models.
 

Manufacturer's Representative Example

  • Technical Systems and components
  • $100 million annual sales
  • 32 geographically exclusive reps
  • Strong specification program
 



Manufacturer's Representative and Industrial Distributor Example

  • Networking processors and products
  • $80 million annual sales
  • 6 field regional sales managers
  • 25 reps: dist support plus. Bypass dist with select large users and OEMs.
  • 200 distributors: Small OEMs and end users
  • 1,000 OEMs, 50% of sales
  • 10,000 users, 50%

 
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