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Why use Manufacturer’s Representatives?












Manufacturer’s representatives compare very favorably to a sales force composed of direct factory employees. Some advantages include:


  • Variabelize your cost — The manufacturer and sales agency agree in advance on a set rate of commission and the agency pays all selling expenses. As sales go up and down so does your cost.


  • Lower Sales Costs — It is estimated that today’s average industrial factory direct salesperson costs $150,000 per year. Producing $2,000,000 in new sales each year, the cost of sales would be 7.5%. A field sales agency producing the same volume at a 5% commission rate would cost only $100,000.


  • Increased Sales — The average factory-direct salesperson is in a territory for two years or less before he or she is promoted, transferred or defects to a competitor for more money. The multi-line sales agency has a lifetime commitment to the territory, thus holding better relationships with the customers.


  • Immediate Access      To The Market      — Sales agencies are an experienced sales team already in the territory.      They are familiar with the area and have good prospects ready to consider      the new line. Many agencies have multiple sales personnel and provide much      deeper coverage than a single direct sales employee. Small, single-person      agencies can provide excellent coverage in many niche markets.


  • Free consulting      services      — Most independent sales agents have 15-20 years of successful corporate      experience under their belts. Many have held positions in large      corporations prior to becoming agents. Think about what a good consultant      charges per hour.


  • Cost of Training      And Turnover In Sales Personnel Is Eliminated — A new agent      has only to learn your company’s products, culture and systems, and many      agents won’t even need product training. All are well-versed in selling      skills so you won’t have to train them how to sell. The average agency has      been in business in the same territory over 20 years, whereas the average      employee only stays in the same place two years or less.


  • Highly      Experienced, More Aggressive Sales Force — Today’s multi-line field sales      agent is highly educated and trained. Since there is no base salary to      rely on, they must sell to live.



  • Sales      Forecasting Is Equal Or Superior To A Direct Sales Force — The volume of      future sales is no less predictable with agents, but it may be better      since so many of today’s agents use sales analysis and forecasting methods      which are often more sophisticated than those of the manufacturers they      represent.


  • Broader Sales      Context for Your Product — Because agents sell several      compatible items, they call on a wider variety of prospects and customers,      often finding applications for products denied the single-line      salesperson. The easiest person to sell something to is the customer who      is already buying from the salesperson!


  • Provides      Marketing Flexibility At Less Cost — Sales agents can increase your      volume by selling outside your present marketing territory. Agents can      also sell a new line without conflicting with your present sales      organization.


  • Creates A      Systems Approach To Selling — Most customers today will agree      to see and buy from only those salespeople who take problems off their      desks and bring opportunities to their attention. The multi-line,      complementary package of products tends to make sales reps systems      oriented rather than a single product oriented. Customers welcome these      consultative sellers.


  • Every Call Is A      Relationship Call For Your Company — Even when the agent doesn’t      present your product, he or she is cementing the customer relationship      which will benefit your company in the future.


  • Multi-faceted,      Multi-skilled Sales Team — Many multi-line field sales      agents also have multi-industry experience, some holding professional      certifications in a variety of industries.


  • Better Market      Intelligence      — Since they carry a mix of products, multi-line agencies have a greater      diversity of customers, and often can get wind of industry trends long      before a factory direct salesperson.



  • Vested Partner      In Manufacturer’s Success — Since, as we mentioned      previously, an agency must sell to live, your agency is interdependent      with your firm. Your success is their success.


Let’s discuss how we can save you money and grow your sales.








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MRO Supplies - Maintenance, Repair and Operation (MRO) items are used in production and plant maintenance and can be items such as maintenance supplies, spare parts, Safety Supplies and consumables used in the production process. This includes items such as: oils, lubricants, gloves, safety equipment and cleaning products.




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