As this is being written, the presidential primary races are approaching a fever pitch and jobs creation and the economy remain high on the list of talking points. Mix that with current headlines pointing to encouraging employment figures, improved housing statistics and positive auto sales and there’s plenty to consider on the economic front.

But headlines and talking points are one thing, what’s happening in the trenches where independent manufacturers’ reps daily toil can be quite something different. Encouragingly what some reps have to offer might just bolster the view that there’s a chance for 2012 to show the improvement that we’ve all been waiting for.

“I talk to the people at the plants we work with and they’re absolutely incredible,” notes Mike Richie, president, J.T. Chapman Company, Houston, Texas. “I haven’t heard any of that ‘doom and gloom’ you hear from others. They’re working as fast as they can to keep up with deliveries.”

Richie, who serves as president of PTRA, says, “The association reps I speak with tell me they’re as busy as they can be whether networking with their principals or calling on customers. And the good thing, those calls on customers are resulting in orders.”

Richie admits that a steadying influence on his business is simply where he’s located — Houston — and its relation to the oil business. “We see business improving 10 percent or more this year and that’s certainly no surprise.”

While he says there might be some sort of a disconnect between what the media reports and actual economic performance he’s experienced, he adds that business in Detroit and the Northeast might be a different story. “The bottom line, however, is that I’m glad I’m a rep and I’d advise others who are in the business to stay in.”

Flipping the Switch

 

A bit of a different scenario is described by Ken McGregor, CPMR, McGregor & Associates, West Jordan, Utah. McGregor, who is president of AIM/R and serves as MANA’s District 8 Director, notes that “We are in the plumbing and heating construction industry. When the banking collapse happened in 2008, it was like someone flipped off the light switch on the construction industry. Bank lending stopped, builders started to go broke or stopped building, and the industry started to ‘ratchet down.’ Our volume of business is down 50 percent from what it was in 2007–2008. If it were not that our company is diversified into many segments of the trade we would be in worse shape than we are. We cut expenses, tightened our belts, and have not had to lay off any employees. We are looking forward to 2012, as the industry is finally starting to show signs of improvement.”

More Positive News

Another positive view is forthcoming from John Sandifer, CPMR, MANA’s District 7 Director. “In my market — Texas, Oklahoma, Arkansas and Louisiana — things have been doing very well. The oil and gas industry is a big part of our being busy. Arkansas trends toward more consumer-oriented manufacturing and its economy is somewhat slower. So when they say the rest of the country is down and you hear bad reports in the news, it kind of scares me that we are doing so well.  2011 may well be my best year yet.”

Sandifer, SanCo Sales Inc., Crandall, Texas, continues, “The challenges in this economy for us are finding capacity at my principals, especially the ones that are doing business in the oil/gas, mining and heavy construction industries. Lead times are still out and it puts the manufacturers in a bind if they don’t order in a reasonable time frame.

“A lot of companies — even though business is good — are holding onto their cash. This is causing them not to order until they have a commitment from their customers. And some have stopped placing blanket orders.  Plus, they are paying 60–90+ days.”

Sandifer concludes that “Just as my customers, I am watching my cash flow and trying to keep more in reserve. Also, we are trying to diversify our lines so we are not as dependent upon just a few principals.  All of our salespeople are committing to target accounts with plans to get the business.”

No “Doom and Gloom”

“The premise that we’re all facing a ‘doom and gloom’ scenario is simply not true,” maintains Dave Ice, a member of MANA’s Executive Committee and the association’s District 6 Director. “Most of the reps that I speak with are very busy and have been busy making money. Personally, I think this is the best time to be in this business.”

Ice, Ice & Associates, Lawrence, Kansas, points a finger at Washington’s continued inaction as one reason why some segments of the economy continue to lag and adds that “perhaps the challenging economy is more indigenous to some parts of the country than others. For instance, the left and right coasts are probably not prospering and growing as much as those of us in the vast middle. Keep in mind that I’m located within 80 miles of the center of this country. The industries that I’m working in, e.g., agriculture, OEM, and agricultural construction equipment, have been relatively healthy for the past couple of years.”

Rather than looking on the dark side of the economy, Ice says that his concern is how he’s going to gear up for all the business he expects to develop. “I, other reps, customers and principals that I’ve spoken with have the concern about how we’re going to get the people we need to do the job. We all want to find people to expand our business, but we can’t locate the quality people who can perform the basics of holding down the job.

“For me, I’d love to find a partner to pull into my business and groom them for the future. My major customers are forecasting an additional growth of 20–25 percent this year. I’ve got to be able to handle that business.”

More Good News

Another positive note is sounded by Ed Reese, MANA’s District 9 Director and Chairman of the association’s Executive Committee. According to Reese, Motion Components, Brea, California, “Our business has continued to be very good. We set a record for our backlog in July and will have record commission income for the year. The largest market we serve is the military/aerospace market. Although there have been a number of programs cancelled, we have been fortunate in that most of the programs we are involved in continue to be active. Our next largest market is the medical industry and we are in a similar position in that most of the customers we call on are doing great.”

He continues, “I believe another factor in our success has been that the products we sell tend to be very technical. As a result, we have developed a great customer base. We also have worked with our principals to develop sales credit programs that include engineering or specification sales credits as many products or programs are designed or developed in our territory but built in other locations. Moving forward I have been reviewing the possibility of adding an additional salesperson.”

Some Mixed News

Some mixed economic notes are sounded by MANA’s District 2 Director Greg Bruno as he takes a look at how the economy has been impacting his business. According to Bruno, Midlantic Enterprises, Inc., Pennsauken, New Jersey, the challenging economy has been both positive and negative.

On the positive side, “We’ve been presented with an excellent pool of new job candidates enabling us to choose among much better candidates. We recently hired two new employees — one to replace someone who recently quit and another new salesperson for additional territory coverage and eventual growth. At the same time, it seems that more customers are willing to talk about and consider alternative/new suppliers and some customers are more willing to write more and longer-term (two-year) blanket PO’s.”

There’s always another side, however, and Bruno offers that view: “On the negative, other sales agencies are actively soliciting our principals causing distraction and unnecessary uncertainty between us and our principals. Representatives chasing already represented principals is most distasteful. It is also contrary to MANA’s Code of Ethics. Our agency has enough competition without having to work at fending off unethical competing representatives.”

And that’s not all. “Head hunters are soliciting our employees and were recently successful in convincing one of our outside salespersons to quit. Payments from customers to principals are slowing which slows subsequent payments to us. In addition, the cost of conducting business continues to ratchet up which is squeezing our margins. Add to that travel costs, especially toll road fees here in the East which have sky rocketed. And, finally, principals continue to put pressure on us to maintain and grow our territories.”

Planning for Any Contingency

When he was asked his thoughts on how reps ought to react as the economy continues to put pressure on their businesses, consultant Bill Heyden, Heyden Training Company, Naperville, Illinois, offers the following advice:

• Speak and think positively at all times — Unlike the rest of life, business is just that: business. It’s not life or death, and everything in business does have a solution. What the economy or anything else can do to us is only limited by what we allow it to do to us. Positive thinking is the key to capturing opportunity when everyone else is looking down. It was Warren Buffett who said, “Be greedy when people are fearful and fearful when people are greedy.”

There is much written about the power of positive thinking, but practically we know it’s true. When we start having a bad day the whole day is bad and vice versa. It means getting “no” out of our vocabulary and more importantly out of our minds. Negative affirmations breed more negative affirmations. We all know what it’s like to say “yes,” but our minds tell us “no.” We might try something and it doesn’t work so the “no” turns into “See I told you,” or “I can’t.” That’s the worst affirmation of all because it creates a loop of self-fulfilling prophecies that is difficult — if not impossible — to break.

• Leverage every resource in the channel to be more effective and efficient — Manufacturers for physical resources like marketing, distribution for intelligence, veteran peers for their experience, your local management for direction and guidance, etc.

• Selling skills — Implement selling skills such as your CBR (Compelling Business Reason) to engage decision-makers more effectively, ask well-thought-out questions to identify opportunities and needs, always sell to needs, articulate your value proposition in a way that is better and different from the competition, work to overcome objections without giving things away, and use positive language to obtain measurable commitments to move forward.

It’s important to remember that when you tell people things, they doubt them, but when they discover things, they believe them. Our job is to sell from the customer’s perspective at all times. Helping them discover what we think is right for them is the highest form of selling.

• Consider your overall approach, especially when engaging your largest account opportunities — These should be the ones that represent the largest potential in your territory, not those that like you best. Top Down Selling applies here more than anywhere else. Engaging “C” level decision makers with your CBR along with a couple of well-thought-out, open-ended questions is absolutely necessary here.

• Utilize an easy-to-use but effective tracking system (CRM) to give you direction on all of your account activity, especially those current customers and prospects that represent large potential — Dedicate the time to input accurate, complete, and up-to-date account information that will enable you to sell more effectively to those who can use, pay for, and value the solutions you represent.

• Resist temptation — Resist the temptation to summarily disregard what’s happening in other industries. While most of what we do in our industry is envied by others, some outside our industry are working with specific techniques and resources that you can benefit from too.

• Be in control of your own destiny — Important groups such as MANA, PTRA, AIM/R, NEMRA and others can guide and direct you to resources that will help you be all you can be. But in the end it’s up to you to control your destiny.

You know through experience there really are no “Habits of” or “10 Commandments to” greater sales. There’s just hard work using best-in-class resources, techniques, and approaches to grow yourself and your business.