Should I work with a sales agent? Think about these things first.

Many product-based businesses believe that hiring a sales agent is the only way to enter the wholesale market. While this can be a good move, it’s important to realize they aren’t a one-stop shop and that certain steps need to be in place before this can happen successfully.

ESTABLISH YOUR BRAND

Sales Agents can help get your business off the ground however they should not be one of the founding members growing the business with you. You should already have a clear idea of who you are, what you can offer, and who your customer is.

HAVE A CLEAR WHOLESALE STRATEGY

Without clear direction, they might end up managing you or approaching stores that don’t fit your brand image or values. As with your stockists, consistent communication is essential - set specific goals, assess progress, and reward success!

DO YOUR DUE DILIGENCE

Before hiring an external representative, do your research!

Although they can be a great way to expand into unfamiliar markets, keep overheads down and tap into a network of industry contacts, contracts can be expensive to end, even if they are in breach of terms. They may also be entitled to compensation if you don’t notify them of an expected shortfall of earnings such as an issue with your supply chain.

ADDITIONAL THINGS TO CONSIDER

Sales Agents work on commission which typically ranges from 10-20% so ensure that you account for this in your pricing structure. Marketing materials and digital presence will also help them sell your brand.

Exclusivity rights and what other clients they are currently working with are also aspects to consider.

Thinking about growing your wholesale channel with a sales agent? This should be apart of your company’s overall business strategy. Get in touch if you need pointers on putting one together!