Friday, February 11, 2005

Is it common to charge Sales Reps for samples?

Re: [spiers] Is it common to charge Sales Reps for samples?

Will I lose the reps if I ask them to pay for samples? What is the best way to
do this?


A common and simple way to handle this is "memo bill" the samples... when you
send the samples to the reps, include and invoice showing the costs, freight,
etc, just like any other customer. The only difference is you never turn them
over to collection when they do not pay for the samples.

Over time, they either return the samples (unlikely) or you start deducting
sample charges from the commissions if the sample are not returned after you
drop an item from the line.

Now the samples aren't really a big deal overall, but the discipline of "no free
samples" is important, even if somewhat a fiction, becuase if samples are free
the reps will be telling you to send free samples everywhere and anywhere.

If they say, send somples of this to Sharper Image then you do so, and bill the
reps for the samples and the freight. This you do deduct from commissions on
the next commission check.

Of course all this should be in the contract to start... something I outlined in
my book... and I think I emailed to y'all last week where you can steal my book
on the net or actually buy it.

O, and buy the way, if you think I am nuts to tell people where they can
download a free copy of my book, it is turning out a free digital copy is a
powerful sales generator, reports coming in from many sources on this
experience. Seems to me another nail in the intellectual property rights
coffin.

John


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