The subjects of independent manufacturers’ representatives and their efforts in the arena of international trade have hardly been strangers to the pages of Agency Sales. Whether that means reps working with overseas manufacturers to market and sell their products in this country, or reps looking to sell U.S.-manufactured products overseas, the process is accompanied by any number of challenges. The fact is, the risks — not to mention the rewards — remain considerable.

Over the years as this publication has reported on reps’ involvement in the international marketplace, a number of truths remain constant. A perusal of interviews that have appeared in Agency Sales indicates that globalization is here and it’s here to stay. It’s up to the rep to make the best or worst of that situation.

For instance, one rep located in the U.S. West explains that it’s undeniable today that “We’re operating within the framework of a global economy. If anyone listens to the news — both the good and the bad — what happens in one part of the world inevitably impacts us here. That’s why I believe that anyone is mistaken to think that we have to take steps to protect the United States from developing nations. If we fail to assist developing nations, or if we think someone else will do it in our place, even greater problems will be created. In the end I subscribe to the view that you should hug your enemies tighter than you hug your friends.”

Competing Workforces

One of the areas where the United States feels the most pressure when it comes to international trade, according to this rep, in is in the area of supplying a competitively priced workforce. He notes that that’s an area where it’s very difficult for us to compete. Where we can compete, however, is in the area of ingenuity in the hands of an educated workforce. “What we should do is stay on top of our developing technology. That’s an area where we lead the world. If we can maintain that advantage, we can continue to grow and occupy our position as a world power.”

For those who share the optimistic views of that rep and have become truly committed to working internationally, there appears to be a bit of a consensus concerning the challenges of either working with manufacturers from other countries or trying to sell products overseas. Among those challenges are the following.

Different Cultural/Business Mentality — Because there can be significant differences in these areas between the United States and other countries, this can actually serve as a positive — but only if the rep truly understands the subtle and not-so-subtle difference from one country to another. If the rep doesn’t appreciate these differences, it can lead to communication and relationship issues.

Communication — While it is mostly the rule rather than the exception that companies in Europe and Asia possess excellent English speaking sales and engineering staff, caution must be exercised when it comes to using slang and overly wordy correspondence. In customer meetings, it’s critical to pay attention that the principal clearly understands what is being discussed and agreed upon.

Geographical Distance and Time Differences — Because of the distance between firms in the United States and those located in Europe or Asia, difficulty in rapidly responding to customer inquiries and request can occur. In addition, other countries have many more holidays than those enjoyed here. As a result, preparation for dealing with these differences is of prime importance.

When it comes to the time zone differences, reps report that this can serve as a positive and a negative. On the positive side, given a 12-hour difference between some countries and the United States, questions/problems can be addressed overnight and resolved promptly the next morning. The obvious negative side is that there may only be a few hours — if any — during the normal business day to communicate with principals. As a result, there may not be the immediate resolution of questions/problems experienced with domestic companies.

Customer Service — Not all international firms have the high domestic standards when it comes to customer service. However, most reps note that this is improving.

Exercising Due Diligence

In addressing these and other challenges when it comes to operating internationally, one rep has come up with a six-word — or what he calls the six Ds — “Due diligence, due diligence, due diligence.”

He continues “Once a rep has completed his due diligence and understands what he’s getting into, what he’s got to do as a businessman is to consider what’s right for the individual agency and for the companies and the people who work for us.”

He continues that there are plenty of opportunities in thinking and acting internationally but, “Having said that, I’d advise anyone to move forward with caution. Once again, make sure you do research and complete your due diligence. Then there’s a terrific commitment in terms of time, resources and money. You can’t approach such a venture in a half-baked manner.

“I’ve heard this from others, and I agree that the time it takes to get up and moving (internationally) is so substantial that it can be very frustrating. Adding to that, many of the plans you make never reach fruition. But for every step you take, you should look at it as the beginning of constructing a building. You learn from everything you do, and ultimately your efforts will pay off.”

MANA welcomes your comments on this article. Write to us at [email protected].

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MANA’s International Special Interest Group

Responding to the needs of its members, MANA has recently created an International Special Interest Group (SIG) with an eye towards providing a forum for those reps involved in international business. According to Ed Juline, Mexico Representation, Guadalajara, Mexico, “MANA has traditionally been a U.S.-Canada organization. There has always been an international rep on the MANA board, but it was someone from Canada.”

After conversations with MANA, it was decided that this SIG would be put together to expand that traditional U.S.-Canada view and allow reps with common international interests to discuss matters of common concern.

Thus far the group has conducted — and will continue to conduct —
a number of teleconferences. Among the subjects that have found some common ground for discussion are the following:

• The lack of the rep-type of profession in Mexico. How can that profession be extended to Mexico?
• Juline has received several calls from MANA reps who say their manufacturers have business in Mexico. “How do I take advantage of that? What do I do?”
• “How do I start or extend an arm of my office into Mexico?”
• “How do I find Mexican manufacturers who want representation in the United States?”
• “What do I do about Canadian brokers who take title to products at the border and expect to earn a commission?”

The International SIG plans on continuing with its teleconferences and Juline requests that independent representatives interested in the group’s activities contact him: [email protected]; (956) 242-7424.

Additional Resources on International Trade

As mentioned in the accompanying article, the subject of independent manufacturers’ representatives and their international efforts has appeared several times in the page of Agency Sales. What follows is a partial list of articles that may be found in Agency Sales or on the MANA website (www.MANAonline.org):

• “Enforcement of a Contract With an International Entity,” December 2015.
• “Tips From the Real World of Working With International Principals,” July 2014.
• “Another Peek at the Sales Representative Agreement and the Global Distribution of Goods,” December 2014.
• “Complete Homework Before Testing International Waters,” December 2012.
• “Dealing With New Sales Management in the International Arena,” December 2012.