| 1. CONTRACTS |
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a) Do you presently have representation in this area?
b) Has your present representation been notified of your intentions?
c) Why did you decide to change representation?
d) Do you use the standard ERA contract?
e) Are you a corporation, proprietorship or partnership? What state are you incorporated in?
f) Does your corporation have a standard contract? Is it uniform for the domestic market?
g) What is your marketing philosophy relative to selling through representatives?
h) Are your products made exclusively in the USA, or do you have offshore operations? |
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(1) If you do, how do you handle the “Buy American” clause of contract? |
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| 2. TERRITORIES |
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a) How have you covered this territory in the past?
b) Is this an exclusive territory?
c) Do you have any house accounts?
d) What are the territorial boundaries under consideration? |
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| 3. DEMONSTRATION POLICIES |
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a) Do you provide demonstrators or samples at no cost to Rep?
b) What are your shipping policies for demonstrators or samples?
c) Do you provide insurance on demonstrators in the field? |
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| 4. SALES SUPPORT |
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a) What do you offer in sales support to the field organization?
b) Do you encourage factory marketing and technical people to make field visits to customers with your representative? How often?
c) What are your annual domestic sales?
d) What are your present sales in territory under discussion?
e) What is the last five (5) years’ sales and growth rate? |
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| 5. TRAINING POLICIES |
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a) What program do you have for training?
b) Do you pay expenses of salesmen attending training sessions at the factory?
c) What is your program for keeping the Rep informed of new product introductions?
d) Do you share expenses of field training seminars? |
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| 6. COMMISSIONS |
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a) What is the commission rate?
b) Do you pay commission on shipment? Do you pay commission on partial shipment?
What is your method of securing commission?
c) Do you have an incentive commission for pioneering a product line as a new manufacturer?
d) Do you have an incentive commission for exceeding quota? How is the quota established?
e) Do you have a split commission policy?
f) What is your policy concerning commissions if you are required to offer a discount?
g) Do you have incentive programs that include direct compensation to my salespeople? |
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(1) If so, is this compensation paid to them directly? |
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| 7. EQUITY CONSIDERATION |
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a) What is your stock option plan for representatives?
b) Do you make stock available to representatives to purchase? |
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| 8. REPRESENTATIVE-PRINCIPAL RELATIONS |
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a) Do you have a Rep Council?
b) Do you have Rep-Principal Management meetings?
c) Do you have Representatives on your New Product Planning Committee? |
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| 9. TERMINATION CLAUSES |
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a) What are your terms of termination?
b) Does your termination period increase commensurate with length of service? |
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| 10. SERVICE POLICY |
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a) What is your In-Warranty Service Policy?
b) What is your Out-of Warranty Service Policy? |
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| 11. MARKETING SERVICES |
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a) What marketing services do you require (i.e., quotas, forecasting, product market surveys)?
b) Do you provide compensation to cover this service? |
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| 12. ADVERTISING |
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a) Where is your advertising emphasis placed?
b) What percentage of your sales dollar do you budget for advertising?
c) Do you provide literature, in quantity, at no charge?
d) Do you have a direct mail campaign?
e) Do you qualify sales leads?
f) Do you provide financial support and products for local Rep shows?
g) Do you have a co-op plan? |
