Step 1: Contact the sales agency for some of the capital equipment that you don’t sell. Normally this will be a manufacturer’s representative agency that represents several non-competing capital equipment manufacturers. I bet you already know a few of these salespeople since they call on the same shops you do, just not very often. Find out who the actual salesperson is in your area and set up a breakfast or lunch with them.
Step 2: At that meeting explain that you make 50+ stops each week at the shops that purchase not only your products but their products also. And that during your calls you sometimes hear or even get asked about suppliers of OEM and used equipment. Explain that if for instance, you are calling on a shop that is having problems with their lifts or other equipment you can ask the manager/owner if it would be alright for you to have the salesperson from the lift company you know give them a call. This is bird-dogging a sale. Another example could be that you know a technician who is setting up his own shop and is going to need some of the products they sell.
Step 3: Now ask the OEM salesperson if you could receive a bird-dogging commission for any leads that result in a sale that you send their way. This is not illegal, this is not sneaky, this is not underhanded — it is just a business deal. You are a private businessperson making an arrangement with another business person.
Step 4: Assuming you come to an agreement be sure to get it in writing what your finder’s fee percentage or flat fee will be. An email chain is a great way to get it in writing. Most manufacturers’ representatives make seven percent to 15 percent commission, so a few points of that would be logical.
Step 5: Keep your ears and eyes open to opportunities for your quasi sales partner to sell something. Do not do the selling for him since you probably don’t know the finer points of their equipment and certainly don’t know the pricing. Simply pay attention to what’s happening and what is said around you. If you know of a shop that is closing, a company that buys used equipment would be happy to know that too.
An arrangement like this can help you in several ways. Firstly, you can make a few extra bucks and as you begin bird-dogging these sales, your regular tool customers will begin to look upon you as not just a tool salesperson but also as an industry expert. Anytime you can present yourself as an overall industry expert you become more valued as someone people will want to do business with.
