I will have an opportunity to purchase my current sales territory by Aug 06
Any advice on what to look for, mistakes to avoid etc.
#2
RainMaker
I am not familiar with "purchasing" a sales territory, but I am curious this concept. Have you worked in it long? Is it well established? Is it expensive?
I'm sure others can offer advice. Sorry I could not help
#3
referee20
the territory we cover is three states. Each principal purchases the territory from the previous principal. The sales agency then enters into an agrrement with the mfg to rep their product in the territory. I have covered one of the states for the past seven years. Now my principal is wanting to sell all three states.
#4
Agent Smith
Hmmm... interesting question. I do not have experience in this matter however off the top of my head here are a few things I would look at:
1. Average sales volume over the past three (3) years.
2. Price relative to average annual sales volume.
3. Limitations and/or restrictions.
#5
referee20
What about financing, incorporate or sole priorityship anything along those lines
#6
Agent Smith
Quote:
Originally Posted by referee20
What about financing, incorporate or sole priorityship anything along those lines
Are you talking about purchasing a business?
#7
referee20
Yes I would be purchasing the agency that currently reps the mfg products. All blue sky, no assets.
#8
Agent Smith
Quote:
Originally Posted by referee20
Yes I would be purchasing the agency that currently reps the mfg products. All blue sky, no assets.
Here's a link to an article on "How To Buy A Business." I hope it helps.
