Contacted in the midst of an agency name change and physical move Rick Root good naturedly took a look back as to how he began his career as an independent manufacturers’ rep.
Root, CEO and COO of Frontline Sales & Marketing, explains, “My friend’s parents owned an agency at the same time I was gainfully employed as an operating engineer. My friend’s father extended an offer to me to ‘come over to the dark side’ as a manufacturers’ rep.”
Root’s introduction to the rep profession was a bit different from many of his peers in that “I had never sold any of the products the agency represented. They had me work for them in Seattle for about six months and then threw me to the wolves by shipping me out to Spokane. As I look back there was no hand holding for me, no data, no computers. Remember that was the time when you didn’t have a dial-up computer connection or the information that’s available to us today via our cell phones or websites. There was none of that information on manufacturers and customers that is so available today. My instructions upon going out in the field were ‘Here you go; go get ‘em. It’s sink or swim.’”
Swim he did as today he, together with Kevin Jones, Frontline’s President and CFO, head the Kent, Washington-based agency.
Frontline’s agency predecessor, Bailey Sales & Associates, was incorporated in 1956. That company served manufacturers as a sales, marketing and service agency with geographic coverage including Washington, Oregon, Northern Idaho, Montana and Alaska.
Adding Lines
In 1998 Bailey Sales acquired Nolan Northwest. This acquisition added lines, new staff, new ideas, and a new direction. Bailey Sales had focused primarily on residential products. Nolan Northwest was primarily in the commercial end of the industry. This combination created a synergistic momentum that allowed the agency to serve a greater portion of its market.
In January 2000 Jones Sales was merged with Nolan Northwest. This consolidation added Chicago Faucet, Leonard Valve, and Truebro lines. Again, new doors were opened because of expansion and in 2005, Bailey Sales purchased the Burke West agency adding the Brasscraft and Red-White lines.
Earlier this year, the agency was reconstituted as Frontline Sales & Marketing and the move was made to Kent.
According to Root, “We made the decision to close down Bailey Sales when one of the owners passed away two years ago. We felt it was best for all concerned to cancel all agreements, complete an asset purchase agreement with the previous owner and simply start a new company. Keeping in mind that Kevin and I were hardly first-time business owners, the move was accomplished in a seamless manner as we started over with a new name, new location, all the while keeping the business moving forward. During the process we kept our manufacturers, employees and customers informed every step along the way. Certainly working in our favor was the fact we had a history of our reputation and trust with manufacturers and customers.”
Analyzing Profitability
At the same time Frontline made the name and location change, its owners downsized the organization with the aim to streamline how it could better serve its manufacturers and customers. According to Root, “We went from about 20,000 sq. ft. of warehouse space to 9,000 sq. ft., and office space from 4,000 to 2,000 sq. ft. At the same time we parted company with some manufacturers because we determined the return on investment simply wasn’t there. For instance, there was one manufacturer that took up approximately 4,000 sq. ft. of our warehouse space and brought in nowhere near the income to justify that investment.”
Root notes that it’s been the agency’s practice to conduct line profitability studies on an annual basis, and that’s something they will continue in the future. He adds that this practice is just an example of how he and his agency work with manufacturers. “If I see something, I say something. My belief is that the manufacturer expects to know from us what’s going on in the field.”
Cost of Operating a Business
When he’s asked if there is anything reps do that he wishes manufacturers were more knowledgeable or appreciative of, Root is quick to respond that “If anything, I wish they were more cognizant of the cost and amount of our time spent on their behalf. It’s very expensive to own, operate and run a professional independent rep agency. The days of us just going out to the mail box once a month and collecting a check are long gone. There still remain some people in some organizations who don’t have the knowledge to understand what it is we do for them.
“Keeping all that in mind, to a large extent it remains the job of the rep to educate their principals about what the rep does. Here’s what I do — whenever I meet with a principal or have a manufacturer in town for joint calls, I take the opportunity to thoroughly review all that we’re doing with and for them. If I’m going to be riding in a car with a manufacturer for a week, I’m going to be sure to discuss market and staff conditions openly and honestly. I’m going to let them know about all the challenges that we face and how we can work better together. Our job as reps is to be professional and open enough to share information on what we’re doing and what we can do better. If we do that to the best of our ability, when the manufacturer gets up and leaves town, he knows all he has to about the relationship.”
Having explained what he wants manufacturers to know about what the rep does, Root continues by acknowledging it’s important that he as a rep be aware of any challenges that the manufacturer faces. “If I’m out in the field representing the manufacturer, I’ve got to know if there are any hiccups. If there are, don’t bury them, let me know what’s going on. Whether it’s something about a defective part or a shipping problem — whatever it is — let the rep know because the very worst thing that can happen is that we find out about it while we’re out in the field with the customer. That then puts the rep with their backs up against the wall and no one wants to be in that position. It’s all about complete and honest communication.”
Even though Root and Frontline were emerging from a flurry of activity at the time of his interview with Agency Sales, the agency owner maintains that he keeps his eye focused on what the future holds for his business. “As we look to the future, Kevin and I are fortunate in that we have family members in the business. Our coattails are long and we can point to any number of other very bright individuals on our staff that have the desired talents when it comes to business development, financial planning and commercial selling. We’ve spoken with several of them and there is certainly interest on their part for the future.”
Having said that, however, he goes on to note that while the future remains paramount in the agency’s plans, there are some present concerns that occupy a good deal of their planning time. “We’re very active in industry and rep associations and one of the most common questions we ask each other at these meetings is ‘What keeps you up at night?’ Probably the most common response to that is while we know how business is conducted today, how do we think it will be conducted five or 10 years out?’
“All of us see and experience a dwindling of that talent pool who want to get involved in the commercial and residential plumbing, heating and decorating trade. In addition, every company today, whether it’s Amazon, MicroSoft or Expedia, is faced with the challenge of attracting talent, and many of them want to work flex time, live downtown in nice condos and want signing bonuses.
“Simply put, this is just something we’re going to have to live with. But we keep in mind that there continue to be plenty of opportunities for us. We’re surviving and thriving. The biggest factor in our favor is the fact that we remain the marketing arm for the manufacturer. In order to do that we’ve got to be smarter and more equipped and be able to train to meet the needs of the market.”
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