From Coal Mining to Sales

By
photo of Rich Deering

Rich Deering heads Industrial Sales Associates, Inc., in Indianapolis, Indiana.

Over the years Agency Sales has reported on many individuals who have made the leap from any number of professions to become independent manufacturers’ representatives. Former teachers, professional baseball, basketball players, golfers, nurses, and even an FBI agent have detailed their changes in profession.

This brings us to Rich Deering, who early in his career worked as a coal miner. Today Deering heads Industrial Sales Associates, Inc., (ISA) in Indianapolis, Indiana. In addition to MANA, ISA is a member of the Power-Motion Technology Representative Association (PTRA).

The agency’s website acquaints visitors with the fact that as an independent manufacturers’ representative, the agency occupies the position as a liaison between the distributor, the original equipment manufacturer, the specialty machine builder, the consumer, and the companies the agency represents. The company “is responsible for the sales process of electro-mechanical components manufactured by quality companies from across the world.”

A graduate of Southern Illinois University, Carbondale Illinois, Deering explains, “I initially had the opportunity to enter in the business of selling as a rep when my grade school basketball coach, then a sales manager for an independent power transmission distributor in Missouri, reached out to me. He hired another one of my early in life basketball coaches for an outside sales position in Southern Illinois, then later brought me on where I went to work at the corporate office in Missouri.”

Making the Move From Coal Mining

On their recommendation, Deering took a position with the company. “I was a country boy, farmer and coal miner (strip mining) and at the time the coal industry was in flux. I took an entry-level position in shipping and receiving and for the most part it’s worked out well over the years. The training I received there was perfect in terms of learning about products. Looking back, there was a huge benefit in this position; while being mentored through the process, I was able to ship and receive electro and mechanical products, learn all about them and their use in applications, which was an ideal start for me.”

Through networking and relationships Deering was invited to join forces again with his old grade school basketball coach, who moved on into the manufacturers’ rep business. “At this time in the journey, my position was developing the power transmission sales for a EASA shop and electrical supply company in Southern Illinois. My coach from the early years, now in the independent rep business, convinced me to step into the fray as a sales/territory manager. ‘You should come to work with me,’ was his message, and it was the start of the next part of the journey.”

Deering admits, while he was a stranger to the world of reps, he was always attracted to a career in sales. “Like so many others, as a youth I started out with a paper route and always did a great deal of fund raising. Several years passed since those days, so when this opportunity presented itself, I was quick to make the move.”

This began the fascination of being in the independent rep world. He then explains he was alerted to an opening to represent a family-owned electric motor manufacturer in the states of Indiana and Kentucky. “In 1996 I interviewed for the position, was chosen to represent the brand and thought how lucky I was to be able to start my own agency.”

Aided by Mentors

At the same time he thought how fortunate he was, Deering also points out how lucky he was to work with the mentors of the company he was representing. “At the time, the company was family owned and boasted of a great group of mentors. Their upper management team would constantly assist in business development and all of their staff served as great sounding boards for the many decisions which had to be made.”

Armed with a principal who was anxious to assist him in becoming a success, Deering notes there was more work to be done. “I’d say among the great challenges I faced when opening my doors was being able to educate myself about the territory and its customers. Simply stated, moving to a new state, starting up a rep agency along with everything involved with this, I didn’t know any of the customer base, which was obviously a concern. One of the most difficult parts of the job was the fact that my wife, who was my rock, and our very young children were still back in Southern Illinois while I was working all week in Indiana and Kentucky. My wife, Crystal, would see me a few hours a week as I would regularly leave the house on a Sunday evening and not return until late the following Saturday.”

He adds there was a certain level of concern in opening his own agency. “I was 36 years old, with a wife and two young children, moving into an all-new phase of life. I guess I was nervous but had little time to spend thinking about it. What drove me was the fact this was an opportunity to be in business for myself, work hard and make many decisions on my own. It was obvious I didn’t know all the answers to the many questions which were asked of me, although I thought I did. Looking back, the excitement of waking up every day, learning more about the relationships, customers, employees, and growing the business kept me fully engaged.”

His ability to grow the business took a hit when the family-owned electric motor line his agency represented was acquired by another larger manufacturer. “Naturally, there was a concern with what was in store for my rep agency and the employees. The family-owned company was focused on perception, taking care of the customer, and growing the brand. However, when a different corporation takes over driving the business model and being ruled primarily by accountants, one has to be aware they probably have a different philosophy from what you’re used to.”

“Being a country boy from Southern Illinois who had grown the line from 1.6 million to 4.6 million over the years, little did I think I’d lose the product line. However, it’s exactly what took place when I lost the political/popularity contest. During the transition of the brand buyout there were 350 years’ worth of very experienced and longtime friendships exiting the manufacturer and customers, only to be replaced by the new team consisting of 25 years’ experience in the business. I was naïve to think I would lose the line to another rep agency. To say it was a ‘gut shot’ would be an understatement. I didn’t know how I’d recover.”

Ending the Relationship

He explains the rep who was awarded the merged brands agreed to hire him on as a rep and “allowed me to keep the few other lines we were contracted with. It was similar to a sub-rep program. At the time I didn’t know exactly what a ‘sub-rep’ meant. Initially being able to sell the now ‘new’ brands and have three other lines of my own seemed to be a bridge to help during this curvy, winding road while on this journey. However, the day my contract ended with the manufacturer and after transferring all files, demos, and everything else from the previous 10 years to the new rep, I was informed I wasn’t needed anymore. Not a good day in the life. Now I was left with three lines, which at the time was generating barely enough to make my house payment every month.”

Not to be deterred, Deering explains he contacted friends and business associates asking them for any suggestions as to what was the best way to get through the detour along this journey. “One of my friends actually told me to ‘get out of the manufacturers’ rep business and start another career.’ Ultimately, through networking and relationships, my path crossed with another rep who was working through the legal process of losing his partner to cancer. Eventually we merged our companies and reestablished ourselves in 2007 with the Industrial Sales Associates, Inc., company name. Today the agency represents electro-mechanical manufacturers across multiple states and Deering is proud of his 24 years of professional experience in the independent manufacturers’ representative business.

“None of this could have been possible without having faith, hope and love in Jesus Christ. I thank Him daily for the opportunity to trust Him more each day.”

Before exiting his conversation with Agency Sales, Deering shared thoughts on some additional subjects which face him and other reps on a daily basis:

  • Surviving the Pandemic — Faced with the inability to see customers face-to-face during the COVID-19 pandemic, Deering explains, “I’m not really a high techy guy, so during the pandemic I engaged the services of a marketing company who helped with starting an electronic contact program with customers. This allowed ISA to regularly electronically blitz customers with information as we were not permitted to see them in person. It’s not easy to be able to tabulate the return on the investment to date, however multiple customers have informed me they’ve seen and appreciate the information.”
  • He adds, “While it’s obvious electronic communications are here to stay, the one thing which remains unspoken is that it’s the human being relationships which truly make business successful.”
  • Shared Territorial Development Fees — Deering maintains, “Admittedly, this is a major topic of conversation among reps. We all want to participate in the earned income which would be generated with such fees. There are several experienced management staff with manufacturers who understand the concept; however, it is very different with too many new-school administration staff employed by the manufacturers today. I’m not confident they choose to understand the full value an independent rep agency brings to the business relationship for everyone. My approach to this subject is to simply wake up every day, go to work and do the best job possible for our principals and customers.”
  • Association Membership — As a member of both PTRA and MANA, Deering notes networking with like-minded reps is a major reason for maintaining membership in industry-related rep associations. “My original reason for joining PTRA was to have access to new lines. Along the way, meeting with other reps and participating in the association’s various seminars have also been very helpful. I learned about MANA through PTRA and have been very impressed with the conversations which have transpired in the various MANAcasts.”

MANA welcomes your comments on this article. Write to us at mana@manaonline.org.

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Jack Foster, president of Foster Communications, Fairfield, Connecticut, has been the editor of Agency Sales magazine for the past 23 years. Over the course of a more than 53-year career in journalism he has covered the communications’ spectrum from public relations to education, daily newspapers and trade publications. In addition to his work with MANA, he also has served as the editor of TED Magazine (NAED’s monthly publication), Electrical Advocate magazine, provided editorial services to NEMRA and MRERF as well as contributing to numerous publications including Electrical Wholesaling magazine and Electrical Marketing newsletter.