“Is this potential new principal good for my agency?”

This question reaches far beyond ex­isting business in the territory or a hot new product that fills a gap on your line card. As a rep firm looks at a new line, or as a principal looks at a new rep firm, both are preparing to make a substantial investment of time and effort. Other than start-ups, most reps are busy with the lines they already have, so the real ques­tion is “Will this be the best, most profitable use of my time?”

Internally, our firm has two forms of checklists. Whenever we consider a new potential principal, at least two of us attend the meeting. If the product is a low to medium potential line, we have a basic check­list that we use during the meeting. However, if the line is a high potential product, we have an in-depth review that measures 32 key items and characteristics. This form has a positive and negative scale, so one can easily total the check marks and arrive at a valid, ini­tial conclusion.

If a firm is impressive during the first meeting, then the true litmus test will be the factory tour. Yes, the facility, equipment and inventory are important, but the most important element is your reaction to the people. How are you treated? Who will generate quotes or track orders? How often will you see your regional manager? Each rep firm will have a some­what different set of questions and concerns, but in the end, you must have a strong gut feeling that these will be good people with whom to work. In a way, taking on a new line (or rep firm) is a little like getting mar­ried; both parties have to make a commitment to trust, respect and assist each other. If those emotional funda­mentals come up short or are missing, then it’s best to move on. One thing you can never replace is your lost time.