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2012 is here, and getting back to “the way things used to be” is just around the corner, right? I doubt it — and that is a good thing. Those of us still in business have successfully weaved through the challenges of our own cruel reality experience that could be called Survivor — Repdom Island. In our version no one has immunity, alliances are crucial but unreliable, and the opposing “tribe” is not necessarily visible. Sounds rough, and it is. But as fellow MANA board member Greg Bruno has passionately communicated, being an independent manufacturers’ representative is still an occupation that offers an unbridled opportunity to work for yourself and accumulate wealth. Agree? I do — my torch is still lit.

So why the optimism in such depressing times? Simple. As independent reps, we are in the unique position to be the preferred sales resource if the economy is booming or recessed — but only for those that continue to be the opportunistic entrepreneurs that we claim to be. In a growth economy we are efficient because we can quickly dedicate the resources necessary to capitalize on opportunities. But in a down economy, we become a uniquely efficient part of the sales process. As the economy and sales decline, the commissions paid to the rep decline in proportion. “So that’s good?” For survival, yes. A variable cost is much easier for a principal to retain in a recession. However, recessions are also times that companies turn to reps as an alternative to their fixed cost direct sales force. I’ve seen this myself within several recessions — have you?

But I am hearing that some economic-based changes are making life as a rep seem unfair. From my research, it appears universal that costs from manufacturers are being pushed down to us. We are being asked to stock product, to absorb customer service duties, to get less reimbursement for trade show exhibit costs, to absorb engineering/quoting costs, and to pick up territory marketing services. And generally there is not compensation being given for absorbing these roles. Oh yeah, and we are being asked to do this with less revenue due to sales and commission rates slipping. But if we can find a way to be efficient at what is being pushed down to us, we have an opportunity to become a more valuable part of the sales process — closer to the customer and ultimately/hopefully unable to be removed. Essentially we are being pushed into understanding how to evolve. The challenge is in finding a way to make it work financially. Hmmm. Since we are being forced into this, maybe we can negotiate soft benefits from getting these new uncompensated responsibilities. Maybe an extended termination notice, additional territory, getting compensation on house accounts, or getting a sales target above which you are paid at a bonus commission rate? Time to get creative!

There is no way that we are going back to the way things were. Soon many of us will find ourselves getting into new markets, new geographies, and/or new sales categories. We will be adding lines, dropping lines, adding/changing personnel, merging companies, and taking on new technology. We will need to cut waste, make investments, and get training. But no one said we had to do this alone! Use your resources. You have already made the first step by being a member of MANA, so consider joining the MANA LinkedIn Group and participate. Reach out to other reps you know, or make a new acquaintance. Commit to becoming a CPMR, or a CSP. Challenge yourself — it’s worth it.

These are exciting times to be a rep for sure!