Services & channels

What is a manufacturer's representative?

A manufacturer’s representative sells on behalf of a manufacturer in an agreed territory or channel without buying the goods. This guide explains the role and how it differs from a distributor.

Sales team meeting around a table

What a manufacturer's representative does

A manufacturer’s representative is an independent person or company that promotes and sells a manufacturer’s products under contract, in a defined territory or sales channel. The representative acts in the manufacturer’s name and is usually paid a commission on the sales it generates.

Typical tasks are:

  • introducing the product line to distributors and institutional buyers;
  • presenting technical documentation, samples and quotations supplied by the manufacturer;
  • reporting market feedback, competitor activity and tender opportunities;
  • coordinating orders, forecasts and questions between the buyer and the manufacturer.

What a representative does not do

A representative does not buy the goods or hold them in stock, and so does not take title to them. Prices and terms of sale are set by the manufacturer, who normally invoices the customer directly.

A representative is also not the legal manufacturer. Product design, performance claims, labeling, quality system and regulatory clearance in each market remain the manufacturer’s responsibility. A sales agreement does not create the regulatory roles that some markets define in law, such as an authorized representative or importer.

Representative and distributor compared

How the two sales roles usually differ

QuestionManufacturer’s representativeDistributor
Who owns the stock?The manufacturer, until it is sold to the customerThe distributor, which buys and resells
Who invoices the customer?Usually the manufacturerThe distributor
How is the role paid?Commission on salesMargin between purchase and resale price
Who sets the selling price?The manufacturerThe distributor
Who handles import, storage and local delivery?Not usually the representativeUsually the distributor

Typical arrangements. The contract between the parties defines the actual terms.

When a diagnostics manufacturer uses a representative

A manufacturer of diagnostic products usually turns to a representative when it wants to reach new markets without hiring its own sales staff there. Common situations are:

  • the product line is too narrow to justify a local office;
  • the manufacturer needs introductions to qualified distributors, not end customers;
  • several distributors in a region need one point of coordination;
  • the manufacturer wants to test demand before committing to a market.

The model works when responsibilities are written down: territory, product scope, commission, who holds regulatory documents and who answers technical complaints.

Two roles at one company

First Diagnostic™ Corporation has two roles. It brands and distributes lateral flow tests made by established IVD manufacturers, listed in the rapid tests catalog and its categories such as STI rapid tests. It also offers sales representation to diagnostic manufacturers who keep their own brand.

The representation work is described in sales representation for diagnostic manufacturers and on the services page. Distributors who want to carry our rapid tests can apply through distributor order processing. For background on how products are regulated, see what is a medical device, or contact us to discuss a product line.

Frequently asked questions

Usually by commission on the sales made in the agreed territory or channel. Some agreements add a fixed fee for defined work such as a market introduction.

Not as part of the sales role. Regulatory clearance for each market remains the manufacturer’s responsibility, sometimes carried out with a local importer or distributor.

Yes, for different product lines. It buys and resells some products under a distribution agreement and represents others on commission.

Regulatory status: Products shown on this website are for professional in vitro diagnostic use. They are not cleared, approved or authorized by the U.S. Food and Drug Administration and are not offered for sale in the United States. Product availability and regulatory status vary by country; contact us for the status in your market.