Tips & Tactics

No “bird dogs” wanted….

How many times does the term “bird dog” appear in a conversation? Those were the first words we heard from one rep as he began to describe what he didn’t want to find in a principal. According to this rep, “In my estimation, a good principal is one that doesn’t constantly ‘bird dog’ you about everything you do — and are supposed to do. The good principal is the one that makes the correct assumption that you know how to do your job. So, instead of tracking everything you do, they look for results. If the results are not there, what follows is not ‘finger pointing.’ What should follow is the question: ‘How can we help you achieve our common goals?’

“I mention this right now because of the number of manufacturers that bombard us with phone and e-mail questions concerning what we’re doing. Sometimes I get the impression they think we wait in the office for their e-mails. If I do that, then I’m not in the field doing my job — and the job won’t get done. The volume of immediate responses expected is absolutely astounding. A good manufacturer knows whether he has the right person representing him. If he doesn’t, then he’ll make every effort to sit down and talk to you and fix the problem. The good principal is the one that realizes this is a long-term relationship, not one that lasts just 12 months.”

Progress for progress payments….

When the subject of “progress payments” was raised during MANA’s first CAPSIG Conference in Louisville, Kentucky, last fall, there was a mixed reaction from the reps in attendance. A few reps acknowledged that on projects involving capital equipment, they had experienced some progress with having their manufacturers make partial or gradual payments to them given the extremely long lead times for various projects. Others explained they had little luck, but the majority simply stated they hadn’t been asking for them.

A conversation with one rep involved with projects related to the oil industry provides some indication that such payments are becoming more commonplace — at least in the industry he serves. “They’ve become pretty standard with our principals. They’ve accepted the fact that a number of the projects we work on take anywhere from three to five years from beginning to completion. As a result, we’ve got to have some money in the pipeline just to ensure the financial wherewithal of our agency. I’ve found that with initial drawings, we’ll receive about a 10-percent payment. As more work is completed, we’ll receive more of our anticipated commission. What many of our principals do, however, is to hold on to the final 10 percent until we’ve completed and submitted all the necessary paperwork. We don’t have a problem with that. In fact, given that they’ve been cooperative in paying us along the way, that’s all the indication we need from them of their good faith.”

Members point out their concerns….

When MANA members were asked to list their legislative priorities for 2006, it’s no surprise that the availability of affordable health care insurance tops their list. The message was probably best delivered in capital letters by one rep who simply wrote HEALTHCARE!

That was just one of the findings of the survey MANA conducted of its membership in an effort to focus the association’s legislative activities for 2006. MANA surveys its membership on an annual basis in an effort to obtain input as to where the association should concentrate its efforts when it comes to supporting legislative initiatives.

Hot on the heels of health insurance concerns are taxes. More than 30 percent of the MANA members that responded to the survey cited tax concerns as a priority for this year. Specifically their desires are that the following efforts be taken:

  • Make both estate tax repeal and other tax cuts enacted during 2001-04 permanent — Some comments accompanying tax observations were: “Restore a fair progressive income tax” and “Implement a flat income tax.”
  • Pursue and simplify tax reform.

Some of the other subjects high on the reps’ wish list were:

  • Limiting punitive damages in civil lawsuits (tort reform).
  • Protect U.S. manufacturers from unfair trade practices with foreign trading partners — “Mandate a systematic process to evaluate costs of producing a product in the United States utilizing automation and other cost-reduction measures before simply choosing to outsource without looking closer at penalties and heavy fines.”
  • Provide incentives to U.S. manufacturers that produce in the United States — “Let’s save our manufacturing capacity! It will be gone when we need it most.”
  • Enact tariffs on foreign goods that compete with goods made by U.S. manufacturers.
  • Support funding for job training and re-training.
  • Support energy independence initiatives — “including nuclear generation.”

When it came time for MANA members to explain more fully some of their thinking on legislative matters, they didn’t hold back. For instance:

  • Nearly 60 percent of the survey’s respondents believe it’s not important that the federal budget be balanced before enacting legislation favorable to small business that requires a decrease in federal revenue or an increase in federal spending.
  • With an eye toward federal assistance in achieving recovery from natural disasters (e.g., hurricanes, floods, earthquakes) more than 80 percent believe federal tax dollars should not be used to rebuild property that is not covered by insurance — “There is too much dependence on the government. If someone establishes property in a flood plain, hurricane zone, earthquake zone, shifting sands or volcano, and has no insurance, then he should cover his own losses. People build in those areas now because they know the government will bail them out.”
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