Question: carter diamond tool has been a leader in manufacturing and...
Carter Diamond Tool has been a leader in manufacturing and has been designing high quality synthetic and natural diamond cutting tools and dressers since 193. Until recently, it employed 10 salespeople to call on accounts. Dissatisfied with results. Carter Diamond discharged all ten in favor of eight independent manufacturer's representatives. ( Manufacturer's reps are not employed by the company: they sell for a number of companies) . The reps in this case sold other industrial products along with precision line to the same customers. Immediately sales began to increase, old business was retrieved and new accounts were acquired.For more info on Carter Diamond Tool go to www.carterdiamond.com
Explain and Discuss
What possible reasons might explain this? What are the advantages and disadvantages of manufacturer’s reps compared to an in house sales force?