Retailing has long depended on sales representatives as the contact point between retailers and manufacturers. Becoming a sales rep is worth considering for several reasons: 1) it's an excellent way to learn about the sporting goods business, 2) it's one way to break into the sporting goods industry, and 3) it can be financially rewarding.
"Sales reps are the legs, voice, eyes, and ears of a company. If a company is fortunate, reps are also the heart and soul. Reps are one of the most important assets a company has, and should be regarded in high esteem. They're the company's messengers to its customers and messengers of the customers' comments back to headquarters," said Marty Carrigan, vice president of sales for Morrow Snowboards. (1)
Some sales reps are corporate employees who only sell that company's products. Others are independents who contract to sell products from several different companies. Still others work for rep agencies. One survey, conducted by the trade organization SIA (the SnowSports Industries America), found that 68% of ski and snowboard reps are independent, 21% are principals in rep agencies, and 8% are company reps. (2) Generally, the bigger the company and the more product lines it manufacturers, the more likely it will have its own staff of reps.
Most reps work territories (i.e., handling accounts within certain geographical areas). The job requires lots of traveling (how much depends on the region--Texas, for example, is a bigger area than New York City) and lots of interaction with people. Example:
Not all industries use traveling reps, however. Some use in-house sales staffs who stay in touch with accounts by phone. Said Kent Uyehara, owner of FTC (a skateboard shop in San Francisco), "With skateboarding, I think the phone-ordering system is the only way it will work. Skateboarding has no real seasons, and product changes indiscriminately -- reps would find the job impossible! ...
"It works like this: companies actually call and tell you about new products --ideally for them, once a week. New product gives them a reason to call -- without new product, a company would just wither. These phone reps are in-house and make smaller commissions than road reps." (4)
Successful reps do more than just selling, however. Many keep track of their clients' inventories so they know what's in stock, what's out of stock, how often orders should be placed, and which products are selling in which locations.
"Reps should do trouble-shooting and problem-solving, determine special products for each market and help [the retailer] with merchandising and how to set up an ad," said Victor Radzevich, national sales manager for Roces, a inline skate company. (5)
The job may also include helping stores create displays. "We talk a lot about merchandising; we might physically help [by] showing them how to merchandise the skate wall or how to separate categories. Then we spend time talking about different promotion opportunities -- how the employee can get involved [in the skating community]," explained Greg Larson, a rep for Rollerblade. (6)
Reps also help retailers take advantage of co-op advertising (i.e., a manufacturer contributes to a retailer's ad budget when the ads feature the manufacturer's products). "The rep tracks the co-op budget and helps the retailer decide on advertising and [which type to use] to make an impact," said Sonny Vinson, director of North American sales for Kryptonics (an inline wheel maker which has since merged with another wheel company, Hyper). (7)
Reps may also be expected to demo products for retailers. "[Reps] do different things. The [specialty stores] get more in-depth and ask more technical questions. The reps actually skate with [their specialty clients]. Specialty stores are generally more involved, more hands-on; they're always trying to improve their product knowledge," noted Chris Bogue, national sales manager at Hyper Wheels. (8)
Reps also interact directly with customers at various retail locations through such activities as special sales events, workshops, and focus groups. "We are becoming more aggressive about going into stores to work with customers," said Miriam Ruzow, president of Gottex, a bathing suit manufacturer. (9)
Another very important job for reps is to collect market information and pass it along, both to the companies they work with and to their retail accounts. Said Larson, the Rollerblade rep, "Two or three times a year we meet with all the [Rollerblade] reps in the country. We hear from them what's working and what's not." (10)
Noted Chris Morris, another Rollerblade rep, "I want to take care of my retailers and keep them apprised of market trends -- if there's a new niche developing that they should stay on top of." (11)
Most sales reps work on full or partial commission. Successful reps may earn as much or more than sales managers or even company presidents. According to Tony Magnusson, a former pro skateboarder who is head of the skateboard/snowboard company Evol, "Reps make a standard seven to ten percent on gross sales. It's common that reps walk away with more money than anybody." (12)
Inexperienced sales reps with no established accounts may be given a starting or base salary, often to be phased out over a period of time until they are working on full commission. While income can vary from month to month, reps who work on commission can have the potential to earn more than on salary. Of course, reps selling hot products in expanding territories are going to make more than reps selling fading products in shrinking territories.
"Most companies pay between five- and ten-percent commissions on received receivables -- not sales booked. If sales reps can sell a million dollars of shipped-and-paid-for goods between all the product lines they carry, they can gross 70,000 dollars. After expenses, shows and samples, reps will be fortunate to net 30,000 dollars. However, the potential exists for significant financial rewards," noted Carrigan. (13)
According to the SIA survey, on average ski and snowboard reps gross $108,900 a year and, after expenses, net $61,000. Gross incomes ranged from $90,300 in the Rocky Mountain region (where there are lots of reps competing for the same business) to $175,000 in the Southeast (where there are relative few reps). Net income was lowest in the Pacific ($48,800) and highest in the Mid-Atlantic area ($73,500). Expenses as a percentage of gross sales ranged from 51% in the Pacific region to 40% in the Rocky Mountain region. (14)
Sometimes reps have to demonstrate their skills before being given the best opportunities. Entry level reps may start out with small territories at low salaries. As they prove themselves, they may be rewarded with bigger territories or more desirable ones (i.e., ones that produce more sales with less travel). Example:
After becoming a sales rep, Keller's business expanded, both through his own ability to land accounts and as a result of New Balance's growth in the market. "The Big Boxes pay the bills, but we still make calls to the smaller accounts. I enjoy the personal touch involved with these stores. I hope they don't go away."
Keller enjoys the traveling (but not necessarily the paperwork that goes with the job). Since his wife is a tech rep for New Balance she often travels with him.
Keller's job also includes running tech clinics and selling at road races sponsored by New Balance.
"I do love my job. And every rep should love what they're doing. Otherwise they might be in the wrong place. You're not always going to post healthy numbers and it's a struggle, but you can't cry about yesterday. In this business there's always a new day." (15)
Some sales reps begin moving up the corporate ladder, from regional sales manager (overseeing a group of sales reps) to corporate sales manager or national sales manager (overseeing all the sales reps) to vice president of sales (handling all sales-related activities). Increasingly an MBA is a prerequisite for upper level sales management jobs.
People who can sell will always have jobs, even in bad times. Every company wants good salespeople. But not everyone is cut out for sales. You really have to enjoy selling and be able to constantly meet and exceed sales goals. You (and your boss) will always know how successful you are.
"[A potential sales rep] must have an excellent working knowledge of the geographic area proposed, excellent working knowledge of the target customer base, charismatic personality, ability to demonstrate outstanding people skills, willingness to invest in themselves and the company they represent, ability to learn and teach a company's products and programs, exceptional organizational and communication skills, and ability and flexibility to travel," explained Carrigan at Morrow. (16)
The Sporting Goods Manufacturers Association has a site with lists of sporting goods companies looking for sales reps.