Outsourcing the Sales Function: The Real Costs of Field Sales

As a former product design engineer, I learned a good manufacturers' representative is worth his weight in gold. The rep is the person you turn to if you have component selection or vendor problems. Likewise, a good rep is a conduit for the voice of the customer; the person who makes clear the needs, the wants, and the opinions of the customer. Both roles are essential to a successful product design effort and both are difficult to fill. Like other positions that demand specific knowledge and experience, the job of a sales representative is a job for an specialist. In "Out-Sourcing the Sales Function", Anderson and Trinkle,- both experts on the topic- explain the intricacies of field sales show how, in many situations, an external sales force can outperform a traditional direct sales team. They give direct specific examples and show how the cost of the sales function can be accounted for accurately. Anyone who's livelihood depends directly or indirectly upon sales, will find this book revealing and useful. Highly recommended. Bruce Long PhD, PE

These comments by Chicago PR consultant Laurence Kaufman, excerpted from a longer review, are right on the money. Clearly directed at corporate executives with the responsibility for determining how their companies' goods are brought to market - CEOs and CFOs as well as their top sales executives - this book equally deserves careful scrutiny by manufacturers' representatives and their organizations, and by those who interface regularly with field sales people, i.e., distributors and other resellers, commercial and industrial end users. A number of factors make this book noteworthy, but perhaps the most important is its authorship - a unique collaboration between an academic (Erin Anderson) who has been studying manufacturers' representatives and the decision to employ them for a quarter-century and a field sales professional (Bob Trinkle) who spent close to half a century practicing what he now preaches. And what Trinkle preaches, along with his professorial collaborator, is not that you should choose the rep route to market, but that you should make the choice intelligently - based not only on economic factors but also in full realization of the impact of corporate culture and product idiosyncrasies - and if you choose to outsource, the factors you need to consider in making the strategy work. Trinkle and Anderson do not say that outsourcing is the right thing to do - it may or may not be. But if you decide it is the right thing to do, they also tell you how to do it right. Another noteworthy feature is the inclusion with the hard-cover book of a CD-ROM Cost Calculator©, that allows those responsible for making dollar comparisons between in-house and outsourced field sales to plug in their own numbers, reminding them along the way of the "soft costs" that go away in tandem with the decision to outsource. Anderson and Trinkle have created a tool not only for making strategic decisions about how to take products into the field, but for creating a better understanding of the role of the rep as an advocate for buyers and for sellers. If you are a rep who wants to be thought of as an OSP (Outsourced Sales Professional), first read this book; and then make sure each of your principals reads it as well. If you are a customer or reseller, it will remind you of the benefits the OSP brings you in efficiency, advocacy, and continuity. If you are a manufacturer, it will help you analyze when to outsource, when to go or stay direct, and when to field a hybrid sales force, and prevent a decision from being made capriciously.

This ranks as one of the best written books and a must have. I recommend this to anyone in marketing and sales, from entry level sales people to marketing and sales managers and even CEOs/CFOs. I have over 20 years in establishing new markets, recruiting and managing the sales force and this book is a treasure that I could have utilized throughout my career. Why learn by trial and error when you have so much knowledge in a book? It is apparent to me, that this book is written from "boots on the ground" real-life experience. Concepts are clearly presented and backed up by real world examples. The included CD is a remarkable utility allowing one to caculate true cost of sales and compare business models. Compare current busines practices to a benchmark. An independent sales representative could use this to negotiate commission rates on new contracts with principals.

Bob and Erin do an excellent job of frameworking the decision criteria of when to use outsourced sales professionals. Reviews the tough topic of the true costs associated with using OSP's vs. direct sales. This is the best book I have seen on this subject. If you are looking at your cost of goods sold and not currently using manufacturer's representatives, this book might give you insight into a great way to go to market !

Outsourcing has become an accepted business practice because it can deliver demonstrable savings and improved services. However, while sales outsourcing is common, it has not been widely adopted by companies accustomed to having dedicated in-house sales staffs. Authors Erin Anderson and Bob Trinkle make a powerful case for the benefits of using outside sales reps, asserting that they cost less and sell more, particularly when they use the tactic of "portfolio selling." The authors explain how the two types of sales forces can co-exist and augment each other. Die-hard sales managers will find interesting material here, though the book belabors a few obvious points and lacks enough real-world examples to juice up the dry text. The authors include a CD with software for analyzing sales costs. Since this is a very specific book for anyone investigating whether to use reps, we recommend it to sales directors and executives who are facing that question. However, front line salespeople and reps should just keep to their appointment books - this text is not designed for you.