© Asterixvs | Dreamstime.com

It seems like the past 12 years of 2000 have given the rep business many challenges and changes. Maybe the ’80s and ’90s had these same challenges? But that was a long time ago and memory fades as I get older.

One of the biggest issues today is principals — keeping them and getting new ones that know how to work with manufacturers’ representatives. As principals become more sophisticated, they add non-industry personnel to their boards of directors, such as lawyers, bankers, etc. One of the first questions they ask is, “Why are you paying these guys such large commissions?” Or they say, “We don’t want an exclusive agreement, if you bring it to us, we will pay you a commission.” It seems the dialogue between rep and manufacturer is not as open and negotiable as it once was. We as reps have to do a better job of informing our principals what the role of the representative is. And that we have the same expenses as they do for payroll, T&E, insurance, auto, benefits, retirement, etc.

Another key is new principals. There seem to be more principals looking for representation than there are representatives. I get two to three prospective principals calling me every week. Most have no business in the territory and don’t want to pay for our time to pioneer their line in our territory.

Technology is now a 24-hour process. With smart phones, IPads, etc., it seems the business day never ends. E-mails and phone calls late in the evening and on weekends are common for most of us — especially the reps that have an office in their homes. I was visiting with a very successful customer in West Texas recently and we were discussing the business climate and how things are more demanding. During our meeting I asked how he dealt with the 24-hour phone calls, e-mails and customer demands. He told me that when he locks the door at night, he forgets the business until he comes in the next morning. I am still trying to work on that one.

The legal aspect of our business is very challenging. I attended the 401 CPMR Class Reunion last May. One of the classes I attended dealt with human relations. It was very disheartening to learn all the legal issues that face the sales agency as a small business. The subject of how you handle employee issues is very critical. By attending this HR class I learned a very important lesson on how to terminate an employee, and it saved me $16,000 by doing it the right way instead of getting mad (which I did) and telling him to @#$% (very thankful I did not).

This is just a small sampling of some of the challenges facing the rep today. Now more than ever, it is important for us to hire professional salespeople — and train them in the rep way of selling.

And it is just as important for agency owners and managers to be educated in the correct ways of managing a sales agency. MANA’s (and other associations’) educational courses can help make us more professional in running our agencies. We must spend time in managing our agencies so we cannot only survive but thrive in the years to come.

We are still the best way to bring manufacturers’ services to market.

Have a great day selling!