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Reply to "Feature Article for February "BuyerZone.com Friend or Foe"?"

"Poking the bear"

I realize that most of the users of this site are sales reps who make their living off of commissions. This means what I'm going to say might not go over well, but I don't mean any disrespect. I hope this comes across as what I meant it to be, a "devil's advocate" approach to the issue. I'm not espousing this view as much as trying to explain them.

First and foremost, Sales Representatives provide a valuable service for the customer by exploring the needs of a company, matching those to a machine that best meets those needs and going beyond to show the customer new capabilities of our products that the customer can use to make their business more effective.

Sometimes.

As Neal pointed out, many "sales reps" are not "consultants" they simply show up, ask about "speeds and feeds" and generate a quote. These reps are NOT providing a valuable service that is worth the extra money the customer pays above cost.

Given that a customer contacting a dealer for a copier has no idea if the rep they will be assigned is a "rep" or a "consultant", what's their incentive to pay the extra?

When this decision falls into the IT area, they will of course choose to use services like Buyerzone. They can do the research, pick the best machine (ha ha) and get it at the lowest cost available. They don't think they need additional services and consultation. Plus, they don't have to spend time they feel is "wasted" going to see the machine and guiding the sales rep through how they do business.

When you take the commission paid to a rep, benefits and sales incentives, most companies lose money on every sale they make. I know this is hard to believe, but with all the "cost" of bringing in a machine, setting it up, providing a demo room, providing the rep office space and a computer and phone, etc., the math comes out very close.

The money in this industry is made in service. As a service manager, why not just move the machines at cost? You eliminate all that upfront cost, wind up making exactly the same on the sale of the machine, and still get the same service revenue on the back end.

Where's the downside?
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