Cost of Sales Benefits

Pumpstock gives you a west coast sales office without the cost of opening one yourself.  The only up-front cost to you is the value of your inventory in the Pumpstock warehouse if you decide to utilize that service.  Revenues received by Pumpstock derive from either flat management fees or commissions on sales within the territory and commissions on shipments from the warehouse.  By separating the sales and warehouse compensation, principals can take advantage of one or the other service, or both.  Actual compensation packages for each of these functions is different for all manufacturers, based on the mix of contracted services, base of existing business, amount of missionary sales work required, and terms of monthly payment.  Each manufacturer will have a compensation structure commensurate with the utilization of Pumpstock’s broad capabilities.  The higher the utilization, the higher the total compensation rate.

 Compensation for Territory Management works out to be the equivalent of 6-15% commission on sales for most principals, while the warehouse commission rate is generally 4%.  These costs are offset in various ways.  Some manufacturers replace salaried field salespeople (and therefore both their associated direct and indirect costs).  Others reduce sales discounts to customers in exchange for better inventory mix closer to the customer.  Others simply expense it as a cost of increasing sales and market share.  Most typically use a combination of all of the above.

 In seeking product lines to represent, Pumpstock evaluates not only the compensation package, but more importantly, the potential for growth within 3-5 years.  Long term commitment from both Pumpstock and the manufacturer is critical for the overall concept to work.  To allow for territory development, we seek to sign contracts that extend beyond the customary one year.  We want the opportunity to explore your company’s needs in order to find a way to help you grow.